European stocks fell and the euro dropped following the resounding ‘No’ in Greece’s referendum.
But a calamitous market response, which was expected in some quarters, failed to materialise.
Many analysts had expected a closer result or even a win for the ‘Yes’ camp, to signal support for the most recent bailout terms of Greece’s international lenders.
But Charles Hall from Peel Finance thought talk of a market crash was overplayed:
“I think the risk factor was never as great as people made out. It makes good headlines to say markets are going to crash. The reality was that this is a situation that has been going on for some time. It seemed like a crucial moment for a bit but we don’t seem anywhere near the end game at the moment,” Hall said.
At lunchtime Frankfurt was down nearly 1.3 percent, Paris had fallen more than 1.5 percent and Milan had taken the biggest hit, down almost 2.8 percent.
Analysts said reaction was muted as they waited for the European Central Bank to act to limit any damage.
The ECB is credited with having additional defence mechanisms in place than it did in 2011-12.