Moderate declines on Wall Street in reaction to the Greek referendum – Onet.pl

At the close the Dow Jones Industrial fell by 0.29 per cent., To 17678.13 points.

S & amp; P 500 lost 0.39 percent. and amounted to 2,068.76 points.

Nasdaq Comp. It fell by 0.34 per cent. and amounted to 4,991.94 points.

“As calm market reaction to the results of a referendum in Greece suggests, the investors do not fear the consequences of + Grexitu +. I still can not exclude that we will see some major declines triggered by Greece, we do not expect, however, that for this reason he threatened us a new financial crisis “- Jan von Gerich rating, chief investment strategist at Nordea Bank.

greater than the drop for the US stock market on Greek referendum reacted indices in the euro area. Here, however, declines were also lower than a week ago, when the market zagregował a strong drop for at breaking off of negotiations with Greece. Euro Stoxx lost 2.2 percent on Monday., The German DAX went down by 1.5 per cent., And the French CAC 40 ended the day a discount of 2 percent.

Greater depreciation of the euro avoided. The common European currency weakened from the start of the session later in the day recovering losses.

After Sunday’s referendum which the Greeks rejected the conditions set by international creditors, the euro zone waiting for new proposals from Athens. In addition to the declaration of cooperation sounded a warning that talks with lenders will now be more difficult.

In the nearest future leaders of the zone euro are to decide whether to offer Greece a further package of financial assistance, or prevent its bankruptcy and perhaps exit from the euro zone.

Greek Prime Minister Alexis said Monday Cipras German Chancellor Angela Merkel that the crisis will present new proposals on Tuesday in Brussels. That evening will meet the leaders of the eurozone countries at the special summit, preceded by discussions of finance ministers. According to commentators, but Athens will present new proposals request for debt restructuring. The result of the summit is difficult to predict given the fact that zone countries are very different views on the further strategy towards Greece.

“Agreeing on the program with the current Greek government will be extremely difficult for the leaders of the euro zone, given that the Greeks have rejected the latest offer. It will also be difficult to sell at home, especially in the Bundestag or in Spain before the elections” – Barclays analysts wrote in a commentary.

According to Morgan Stanley probability Grexitu after the referendum has risen to 75 percent. According to BNP Paribas, it is 70 percent. Societe Generale estimates it at 65 percent. Above 50 per cent. They are also evaluate the JPMorgan analysts.

The market, however, remain the optimists. Among other things, analysts Goldman Sachs and Citigroup assume Greece remains in the eurozone in their baseline scenarios.

Greek referendum They made it to second place last data from the US economy. Slightly weaker than expected reading was the rate of activity in the US services prepared by the Institute for Supply Management (ISM). It rose in June and amounted to 56.0 points. Analysts had expected the index at 56.4 points. In May the index of activity in services in the US amounted to 55.7 points.

Markit Economics said in a final calculation the composite PMI index in the US amounted to 54.6 points in June. A month earlier the index stood at 56.0 points. The PMI index in the service sector amounted to 54.8 points in June. to 56.2 points. in May.