Markets muted as Greek crisis seen quarantined

London

EUROPEAN and US stocks were lower with the euro after Greek voters rejected creditors' austerity demands, though the reaction was muted in a sign that investors see the financial crisis there as quarantined for now.

The euro dropped less than one per cent and stock volatility fell after Greeks voted in a referendum on Sunday to reject their creditors' austerity terms for aid. The Stoxx Europe 600 Index fell 1.3 per cent in New York, and the Standard & Poor's 500 Index lost 0.7 per cent. Treasury 10-year yields fell nine basis points to 2.3 per cent. Shanghai shares rose amid intensifying efforts to arrest a US$3.2 trillion sell-off.