Fundamental analysis for Monday, 6 of July from Fort Financial Services

Based on the results of the Greek referendum where against the measures proposed by the creditors voted the overwhelming majority of voters, European and Asian markets are falling, bond yields of peripheral countries in the Eurozone are growing, while the euro feels relatively stable after a gap in the Asian session recovering to the level of Friday's closing. The euro lost 0.5$ against the US dollar during the Asian session and reached the minimum of $ 1.0967. Against the Japanese yen, considered by investors as a defensive asset, the Euro lost 0.6 percent.
Investors go into the low-risk defensive assets, including the German and US government bonds. According to the muted reaction of the markets and the dynamics of the last week, rightly or wrongly the market believes that the ECB has protective mechanisms and is prepared for the development of any situation more than it was in 2012.
The German DAX has fallen by 1.24 %, the Italian index FTSE MIB lost 2.8 percent. Italy, Spain and Portugal are considered by the market as the most vulnerable economies to the negative influence from Greece. Yields on Italian, Spanish and Portuguese government bonds rose by an average of 8-10 basis points, while the yields of a more reliable German 10-year bond fell by 5 basis points. Thus, we can assume that investors are moving to German bonds to avoid the risk and thereby supporting the euro.
Chinese exchanges traded today in plus after support measures taken by the Chinese regulator after a nearly 30 percent drop since mid-June. The index of the Asian-Pacific MSCI fell by 2.8 percent. Futures on US indices (SP 500, Nasdaq, DOW) are traded on a negative level on average by 0.70 percent and indicate the possible negative opening of Wall Street.
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The review was prepared by the analytical department of Fort Financial Services.