European Factors to Watch-Shares seen sharply down after Greeks say "No"

lunes 6 de julio de 2015 02:33 GYT
 

(Adds futures prices, details, company news)

LONDON, July 6 (Reuters) - European shares headed for a sharp drop on Monday after Greeks rejected austerity measures demanded in return of a debt deal, raising concerns about the country's exit from the euro zone.

At 0629 GMT, futures for the Euro STOXX 50, Germany's DAX and France's CAC were 1.9 to 2.3 percent lower. Britain's FTSE futures fell 0.8 percent.

"After surprising the market by calling a referendum, the Greek people once again surprised the market by voting 'No'. This puts the Greek government on a collision course with the creditors and the risk of a Grexit has certainly increased," Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels, said.

"This will make for a traditional "risk-off" in line with what we saw last Monday, with more risky assets going down and money floating to safe heavens. At the end of the day, the negotiations will continue but the outcome is uncertainty."

Stunned European leaders called a summit for Tuesday to discuss their next move after the surprisingly strong victory by the 'No' camp defied opinion polls that had predicted a tight contest. German Chancellor Angela Merkel's deputy said Athens had wrecked any hope of compromise with its euro zone partners by overwhelmingly rejecting further austerity.

The vote leaves Greece in uncharted waters: risking a banking collapse that could force it out of the euro. Without more emergency funding from the European Central Bank, Greece's banks could run out of cash within days. That might force the government to issue another currency to pay pensions and wages.

Many economists, including those at U.S. banking giant J.P.Morgan, reckon the outcome of Sunday's referendum will probably hasten Greece's exit from the euro.

"JPM base case now is for Grexit, and we tactically cut banks, one of the best performing ... sectors in the last 3 months, as spreads are likely to widen. We also reduce Eurozone weight in global portfolio from OW (overweight) to N (neutral)," J.P.Morgan Cazenove analysts said in a note.   Continuación...