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Overseas Trading: Stocks Fall on 'Grexit' Fears; Chinese Government Steps In

Greece's 'no' vote sends shock waves throughout markets

Jul 6, 2015 at 8:10 AM
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Stocks are turning lower across the globe, after the "no" votes prevailed in Greece's national referendum on Sunday -- meaning citizens rejected bailout terms set by the country's creditors. China was a notable exception, with stocks turning higher after the government introduced a number of measures to stem the market's sell-off. Namely, securities regulators announced plans to cut the number of initial public offerings, while the People's Bank of China provided banks with a fresh liquidity boost. The Shanghai Composite managed to close out with a 2.4% lead, down from an intraday gain of nearly 8%. Japan's Nikkei closed 2.1% lower as the yen gained ground, while South Korea's Kospi tumbled 2.4%. In Hong Kong, the Hang Seng gave back 3.2%.

European bourses are lower across the board, as investors weigh the ramifications of the Greek referendum -- which has effectively raised the chances of an exit from the eurozone. (Following the results, the country's finance minister, Yanis Varoufakis, offered his resignation.) Indexes have pared the worst of their intraday losses at mid-session, though banks remain hard-hit by the news. Leading the path lower is France's CAC 40, down 1.6%. Germany's DAX was off 1.4% at last check, while London's FTSE 100 was down only 0.5%. Elsewhere, Greece's stock markets and banks remain closed. 

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