Australian stocks down 1.53% at open after Greek vote

Greece’s banks may soon run out of money and the country could be forced to issue its own currency. The dollar index added 0.2 percent to 96.279. So the initial response to the Greek referendum was negative but not panicked.

The broader All Ordinaries index was up 100.7 points, or 1.84 per cent, at 5,564.0 points.

Japan’s Nikkei 225 stock index was down 1.4 percent at 20,263.27 by mid-morning.

Quay equities head of trading Tristan K’Nell said there was uncertainty how how the situation would play out. “Negotiations will resume over the coming days, but the probability of a deal is distant”. “A further depreciation therefore seemed both likely and necessary”. It was its worst drop of the year, and it could happen again.

Earlier, Greek Prime Minister Alexis Tsipras received hard news from global Monetary Fund Managing Director Christine Lagarde on Monday that policy prohibits lending to countries that have missed payments, although it can offer advice of the staff, an IMF spokesman said.

Repercussions of the referendum nonetheless were felt across the globe. The Nasdaq composite fell 14 points, also 0.3 percent, to 4,994.

Bond prices rose. The yield on the 10-year Treasury note fell to 2.33 percent from 2.39 percent late Thursday.

According to Bloomberg, “Chinese financiers are turning to the same playbook used by their American counterparts to fight a crash that’s wiping out stock-market fortunes on an unprecedented scale”. That should help markets avoid the so-called “Lehman moment”, when the collapse of the investment bank in 2008 triggered a major panic.

The Chinese securities companies say they will continue to invest in the market as long the Shanghai Composite, China’s equivalent of the Standard & Poor’s 500 index, remains below 4,500.

The weekend announcements come as the government battles to restore faith among the nation’s 90 million individual investors after a slew of measures by regulators, including a pledge to investigate market manipulation, failed to stem declines. Smith School of Business. “This is a path that suggests to us that there is now a high likelihood of Greek exit from the euro, and possibly under chaotic circumstances”, the bank said in a memo.

The ASX 200 fell by 1.77 percent in early trading, reaching a low of 5,436 points before rebounding.

The decision was widely feared and had global repercussion with financial markets in Asia turning cautious and oil prices eased.

The euro was up 0.4 percent on Monday, at $1.1042, after falling on Sunday. The dollar was little changed, slipping to 122.65 yen from 122.88 yen on Friday.

The gains were spread across the Australian market on Tuesday, with the exception of energy stocks, which suffered due to a slide in oil prices.

The stock opened and closed at 23 cents.