Shares across Europe fell by almost 2% on 6 July after Greeks overwhelmingly rejected conditions of a rescue package from its creditors.
Banks have warned that they could run out of cash within days, meaning the decision by the European Central Bank (ECB) on whether to extend emergency liquidity will be crucial.
Mike Ingram, market analyst at BGC Partners in London said that Greece looks like its moving closer to a break from the Eurozone.
It doesnt really matter which way the vote went in a way because Greece either goes soon or at some point in the not too distant future. So it is effectively down to timing. A no vote on a lot of peoples reckoning probably translates into something like a 70-80% chance of a Grexit, he said.
Ingram added that the no vote has had a negative effect on the markets.
The epicentre here of course is Greek debt itself. Where the two year bond is now trading at just 42 cents on the dollar, clearly discounting a significant credit event in the not too distant future. Also, the euro was initially under some pressure, coming back a little bit, but of course difficult to argue that you should be buying the Euro heavily at this point in time.
Shares in Hong Kong suffered their biggest one day fall in three years, as investors worried that the Greek debt crisis could deepen. In London, the FTSE 100 fell less than other European markets, with some traders saying Britain was benefiting from being viewed as a relative safe haven away from the problems of the euro zone.
