European Markets Fall as Greek Voters Say 'No'

Markets Dow Jones Newswires

European stocks dropped Monday, with investors questioning what's next for Greece and the eurozone after Greek voters overwhelmingly rejected reform plans demanded by the debt-laden country's creditors.

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All of the region's major indexes fell more than 1%. The losses came after more than 61% of Greeks on Sunday voted "no" to austerity measures (http://www.marketwatch.com/story/european-leaders-look-to-chart-path-following-greek-vote-2015-07-06) and other overhauls that European and International Monetary Fund officials had wanted in recent talks on further bailout aid.

The Stoxx Europe 600 fell 1.3% to 378.46, heading to its lowest close since February, according to FactSet data.

Germany's DAX 30 fell 1.4% to 10.907.82, with Deutsche Post AG (DPW.XE) the only advancer as shares rose 3%. In Paris, none of the components on CAC 40 traded higher, puling the index down 1.6% to 4,730.49.

German Chancellor Angela Merkel and French President François Hollande were expected to meet in Paris later Monday, and eurozone leaders were slated to meet Tuesday in Brussels. Separately, markets were waiting for any word from the European Central Bank on what it will do with emergency lending to Greek banks. Read: Will Greece now leave the euro? Watch the money to find out (http://www.marketwatch.com/story/will-greece-now-leave-the-euro-watch-the-money-to-find-out-2015-07-05)

Meanwhile, Yanis Varoufakis on Monday resigned as Greece's finance minister, with the official saying the move is related to "creditors' loathing" (http://www.marketwatch.com/story/varoufakis-resigns-as-greek-finance-minister-over-creditors-loathing-2015-07-06).

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Greek authorities have indicated they want to restart negotiations with its creditors as soon as possible.

"The efficacy of these discussions will depend crucially on the negotiating line taken after the referendum," said RBC Capital Markets's Elsa Lignos and Timo del Carpio in a note. "We see a risk that the government will overestimate its bargaining power on the back of the strong 'no' outcome."

Spain's IBEX 35 lost 1.8% to 10,583.90 and Italy's FTSE MIB stumbled 2.8% to 21,875.16.

In the currency market, the euro fell 0.4% against the dollar to $1.1065, according to FactSet, but was off an intraday low at $1.0952. Read more in Currencies (http://www.marketwatch.com/story/euro-falls-against-rivals-as-greek-voters-reject-austerity-demands-2015-07-06).

In London, the FTSE 100 lost 0.6% to 6,544.60.

U.S. stock futures (http://www.marketwatch.com/story/us-stock-futures-slide-as-grexit-risks-rise-2015-07-06) were also under pressure following the Greek referendum.

Among European corporate movers, Rolls-Royce Holdings PLC (RR.LN) shares slid 9% after the engine maker suspended plans for its first-ever share buyback (http://www.marketwatch.com/story/rolls-royce-scraps-first-ever-share-buyback-2015-07-06).