Greece causing more problems in Europe, Stock Market set to open Lower

THE Australian market looks set to open lower after overseas markets went into a tailspin overnight, following Greece's unexpected announcement of a referendum on its latest EU bailout program. At 6.21am (AEDT) today, the December share price index futures contract was down 51 points at 4180.
Greece's latest bailout deal was only agreed upon last week, and the referendum puts the hard won accord in jeopardy and Europe in uncharted waters.
Dealers said the announcement yesterday by Greek Prime Minister George Papandreou completely trumped any idea the Greek debt issue could be resolved gradually.
The news was even more troubling as it followed weak Asian manufacturing growth data, especially in China, the world's number two economy, which further clouded an already very uncertain outlook.
"The wheels look set to fall off the European bailout effort as the Greek prime minister's call for a referendum sent the market into a tail spin," said ETX Capital trader Manoj Ladwa in London.
The markets have tumbled as investors begin "to factor in an ever increasingly likelihood of a Greek default", Mr Ladwa said.

In London, the benchmark FTSE-100 index of top companies lost 2.21 per cent to 5421.57 points, but even this sharp loss was better than most others.
In Paris, the CAC-40 slumped 5.38 per cent to 3068.33 points and in Frankfurt, the DAX-30 was down 5.0 per cent to 5,834.51 points.
Milan tumbled 6.8 per cent and Madrid fell 4.19 per cent while Athens, the epicentre of the latest crisis, dropped 6.82 per cent.
In Australia, the market yesterday closed before Greece's announcement, falling 1.5 per cent as weakness among the nation's major miners dragged the broader market lower on weaker Chinese manufacturing data and concerns about Europe.
The benchmark S&P/ASX200 index closed down 65.2 points, or 1.52 per cent, at 4232.9, while the broader All Ordinaries index fell 63.3 points, or 1.45 per cent, to 4297.2.

Thanks to AFP