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Greece After the No Vote

Shane Oliver, Head of Investment Strategy and Chief Economist comments on the implications of the No vote in Greece's weekend referendum. 

Key points:  

The Greek No vote means more uncertainty ahead regarding Greece, with significantly heightened risk of a Greek exit from the Euro.
The threat of a flow on to other Eurozone countries is likely to keep markets on edge in the short term. However, contagion is likely to be limited as the rest of Europe is now in far stronger shape than was the case in the 2010-12 Eurozone crisis and defence mechanisms against contagion are now stronger.
As a result we don't see the Greek debacle derailing the European or global economic recoveries. So while the correction in shares looks like it might go further in the short term, the broad rising trend in markets is likely to continue.

Posted by Christina Cabrera on Monday, July 06, 2015

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