Australian stocks were crushed on Greek debt fears

Greek Prime Minister Alexis Tsipras leaves his residence to visit the President of Greece. Photo: Getty Images

The Australian market fell sharply but not as hard as some commentators expected as investors reacted to the Greek people rejecting the latest bail out plan.

The ASX 200 dropped in early trade 1.74% to 5,442.10 before recovering to close at 5,475.00, down 1.14%. All ten sectors were in the, led by energy stocks, banks and the big miners.

The market got some lift from China where the Shanghai market rose strongly after new support from the Chinese Government.

Chris Weston, chief market strategist at IG, says there’s an element of waiting to see what happens in European markets. This could mean further selling down on the ASX tomorrow.

“We had expected a little more panic selling coming through, a bit more aggressive moves from markets and traders,” Weston told Business Insider.

“It’s a negative day but it doesn’t feel as bad as it could have been.

“I think there’s an element perhaps of people wanting to get direction from Europe. We’re already calling European markets down 3%.

“The worse case has eventuated and it’s going to be a testing 48 hours. Perhaps we’ll see some further selling tomorrow if there’s a big sell off (in Europe) tonight and we suspect that will be the case.”

On the ASX today, the big banks have all lost ground, led by the Commonwealth at $85.11, down 1.78%. AMP shed 2.89% to $6.04.

Among the miners, BHP had lost more than 2% to $26.03 and Rio Tinto 1.91% to $51.50.

Energy stocks lost 2.34% across the board. Woodside Petroleum was down 1.78% to $34.14 and Santos 2% to $7.85.

Gold miners, with their traditional safe haven precious metal, were just about the only stocks in favour. Northern Star was up 3.8% to $2.18, Ocean Gold 3.25% to $3.18 and Newcrest 1.75% to $12.77.

Greece voters overwhelmingly rejected the latest bailout package from European creditors in Sunday’s referendum.

The Australian dollar crashed to six-year lows overnight as traders worry the Greek No vote will unleash market turmoil.

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