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    MORNING BELL: Greeks defy Europe with referendum 'No'

    Greeks overwhelmingly rejected conditions of a rescue package from creditors on Sunday, throwing the future of the country's euro zone membership into further doubt and deepening a standoff with lenders. As the euro slid more than 1 percent against the dollar and European stock and bond markets were poised to take a sharp hit with the resumption of trade on Monday, stunned European leaders called a summit for Tuesday to discuss their next move. 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.

    The euro fell sharply in Asia on Monday after polls suggested the Greeks had overwhelmingly rejected austerity measures demanded in return for bailout money, putting in doubt its continued place in the single currency. In a typical "risk-off" reaction top-rated sovereign bonds were well bid while U.S. equity futures dropped around 1.4 percent ESc1. Oil prices also took a spill with Brent crude falling 67 cents to $59.65 a barrel. 

    Gold prices firmed on Friday, rebounding from a 3.5-month low as the dollar softened, while investors remained cautious ahead of Greece's referendum on an international bailout deal.

    Liquidity was thinner, as well, with U.S. markets closed for the Independence Day public holiday. 

     

     

     


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