European markets expected a 'No'

European markets were not going to be caught out for the second week in a row and instead only edged slightly downwards in the first trading session since Greeks voted “No” in the bailout referendum.

The FTSE 100 dropped by just over 1% in the market open while Germany’s DAX, Spain’s IBEX, Italy’s FTSE MIB, and France’s CAC all fell by around 2%.

Nomura’s analysts highlighted late last night that they didn’t expect a massive sell-off in the European markets open on Monday, mainly because the announcement of the referendum was such a huge surprise to the markets, and investors were braced for a “constructive outcome to the negotiations,” that the markets reacted violently:

However, the Asian markets are reacting more negatively, as Hong Kong’s Hang Send index is down by over 3.4% and Japan’s Nikkei fell around 2%.

Meanwhile, after Greek finance minister Yanis Varoufakis announced his shock resignation this morning, the euro surged.

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