If Greece could be on the way out of the eurozone, will investors be less willing to hold the debt of other states carrying heavy debt loads?How far will financial markets fall on Monday morning? Expect to see the leading European share index plunge 10% initially in the event of a no vote, Goldman Sachs predicted at the end of last week.A 10% decline would be enormous, but almost any prediction is credible in the current climate. We’re back to the wild markets seen at the height of the banking crisis in 2008. Many fund managers, even last week, were expecting a strong yes vote in Greece. It’s hard to know how severely they will be shocked by the scale of the no victory. Share prices in London are bound to be affected – a 2% fall, or about 130 points off the FTSE 100 index, was Sunday night’s indication in futures markets. Continue reading...
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