The resounding ‘no’ from Greece last night has been compounded by the resignation of finance minister Varoufakis, perhaps one of the most interesting characters to be produced by this crisis. He is unlikely to leave the stage entirely, but his departure may make it easier for Mr Tsipras and Angela Merkel to strike a bargain in any last-ditch negotiations this week.
Market reaction has been relatively muted so far, and undoubtedly many will look back to last Monday and reflect that the immediate reaction may not always be the correct one. Tsipras has proven that he will not blink, and arguably the onus is on Greece’s creditors to step up and negotiate a fresh deal. Combined with the wild gyrations seen overnight in China that have come in spite of stabilisation efforts, these are not markets for the faint-hearted. We are currently expecting the FTSE 100 to open at 6536, down 50 points from Friday’s close.