Europe markets claw back on hopes of fresh talks

London

EUROPEAN markets, with the exception of closed Greece, plunged between 4 and 5 per cent before rallying slightly, leaving losses at a manageable 2 per cent to 4 per cent, so far. The euro tumbled below 1.10 against the US dollar, a three-week low, but then revived by one cent.

By mid-morning, declines were not as bad as expected, illustrating that analysts and traders are hoping that the Greek electorate will favour austerity terms of the nation's creditors in the coming referendum. According to a poll last weekend, 57 per cent of those surveyed wished to remain in the euro. The hope of analysts, notably European equity bulls, is that a "yes" vote will lead to renewed negotiations and a possible resignation of Prime Minister Alexis Tsipras followed by fresh Greek elections.