Oil prices fell sharply early on Monday after Greece rejected austerity measures demanded in return for bailout money and as China rolled out an unprecedented series of steps to prevent a full-blown stock market crash. The result of the Greek referendum put in doubt its continued place in the single currency, pulling down the euro EUR= in early trading on Monday.
“With Greece reserves running low and no immediate bailout funds on the horizon, Greece is on a straight path out of the euro zone,” said Howie Lee of Singapore-based brokerage Phillip Futures. “Early morning indices’ movements have shown the likes of the Nikkei and the STI to have fallen. The selling is likely to spread to European and U.S. markets once they open.”
In China, stock markets face a make-or-break week after officials rolled out a series of measures to prevent a full-blown stock market crash that would threaten the world’s second-largest economy, although share prices rocketed on Monday in response to Beijing’s measures. International benchmark Brent futures were down around half a dollar at $59.80 per barrel at 0200 GMT, and U.S. crude futures CLc1 were at $55.07 a barrel, down almost $2 since they last traded before the July 4 4 national holiday.