Euro Falls After Greece Votes No

 
Snapshot: 

        -EUR/USD at 1.1063-66; 10-year Treasury yield at 2.302%; U.S. stock futures sharply lower; Nymex crude at $54.72; gold at $1166.60
        Watch for: Services PMI; ISM non-manufacturing report; Bank of Canada business outlook survey
        News: Greeks Reject Creditors' Bailout Terms; Greek Finance Minister Resigns; Beijing Aims Big Booster Shot at Teetering Stock Market; Iran Wants to Double Oil Exports After Sanctions End
        The euro was lower against the dollar on Monday, after more than 61% of Greeks voted "no" in Sunday's referendum on austerity measures put forward by the International Monetary Fund and the eurozone as conditions for further bailout aid.
        The euro fell as low as $1.0952 during Asian trade before recovering slightly to trade around 0.4% lower on the day at $1.107 by midmorning in Europe.
        The Greek government will now try to renegotiate a new bailout package with the lenders, but economists fear the lenders are unwilling accept looser reforms, raising concerns that Greece will exit the euro.
        Elsewhere, the yen was boosted by weakness in Asian stocks and the Greek uncertainty. USD/JPY may see further downside, with a risk averse mood, said Yuzo Sakai at Tokyo Forex & Ueda Harlow.
        China's yuan closed slightly lower against the dollar as Beijing guided its currency weaker via a reference exchange rate.
        Malaysia's currency fell to its weakest level against the dollar since the Asian financial crisis, as political pressure builds against the country's prime minister and Greek uncertainty rattles investors.
        U.S. Treasurys continued to rally in early European trade, as core bonds benefited from the Greek vote.
        At 4.37am ET, the September future traded 23/32 higher at 126-190, pushing the yield on the 10-year Treasury down to 2.302%, a near two-week low.
        Ahead this week, 3-, 10 and 30-year U.S. Treasury notes are scheduled for release.
        In Europe, the yield on the 10-year German bond was at 0.74%, the yield on 10-year Italian bonds rose to 2.31% and the Spanish 10-year rose to 2.27%.
        U.S. stocks were poised to open sharply lower, with futures in the red after the Greek referendum.
        Futures for the Dow lost 141 points, or 0.8%, while those for the S&P 500 fell 13.80 points, or 0.7%. Futures for the Nasdaq slid 31.25 points, or 0.7%.
        The declines tracked losses on the European stock markets, where the Stoxx Europe 600 index erased 1.1%. Asian shares also mostly slumped.
        On a light day for data, the only major release is the ISM non-manufacturing index due at 10 a.m. Eastern Time. Economists polled by MarketWatch expect a reading of 55% for June, down from 55.7% in May.
        A. Schulman is expected is report fiscal third-quarter earnings of 77 cents a share on revenue of $605.2 million, according to analysts surveyed by FactSet.
        Oil prices fell to a three-month low in Europe as worries about China's stock markets and Iran eclipsed the continuing saga in Greece.
        Iran nuclear talks are due to be completed this week. The Wall Street Journal reported that Iran wants to double oil exports to 2.3 million barrels a day if a deal is reached and sanctions are lifted.
        Brent crude fell 1.7% to $59.27 a barrel on London's ICE Futures exchange. U.S. crude futures were trading down 3.9% at $54.72 a barrel on the NYME.
        Gold was 0.3% higher at $1166.60. Greece's vote may have increased the chances that the nation will leave the eurozone, "yet there has been virtually no reaction from the gold price," said analysts at Commerzbank. The focus now is on the emergency loans for Greek banks: unless lending is topped up by the European Central Bank, banks may run out of money, "which would mean a new level of escalation in the debt drama and should lend support to the gold price."
        Greeks Reject Creditors' Bailout Terms
        Greeks overwhelmingly voted against their international creditors' conditions for further bailout aid, in a result that could push the country closer to bankruptcy and an exit from the euro.
        Greek Finance Minister Resigns
        Greece's confrontational Finance Minister Yanis Varoufakis resigned, saying the prime minister had judged it "potentially helpful" if he was absent from future talks with creditors.
        Greece's Debt to ECB Can't Be Restructured, Official Says
        Greek debt held by the European Central Bank can't be restructured as doing so would contravene the eurozone's founding treaties, Christian Noyer, a member of the ECB's governing council said.
        Beijing Aims Big Booster Shot at Teetering Stock Market
        China's central bank will indirectly help investors borrow to buy shares in an effort to rescue the country's stock market.
        SEC Probes Marketing Of Private Tech Shares
        Securities regulators have launched a broad investigation into whether hedge funds and other investors are improperly selling hot private technology stocks amid a boom in the trading of such shares, people close to the probe say.
        Kerry Says Difficult Issues Still to Be Resolved for an Iran Deal
        Key elements nuclear agreement between Iran and world powers were falling into place Sunday, but U.S. Secretary of State John Kerry warned there were important sticking points that may yet scuttle the deal.
        Iran Wants to Double Oil Exports After Sanctions End
        Iran wants to double its crude exports soon after sanctions are lifted and is pushing other members of OPEC to renew the cartel's quota system.
        Write to Riva Gold at riva.gold@wsj.com @GoldRiva
        (END) Dow Jones Newswires

        July 06, 2015 06:33 ET (10:33 GMT)

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