US pre-open: Futures push lower after Greek 'no' vote but losses not too severe

US stocks are expected to open lower on Monday, taking their cue from a downbeat session in Europe, after Greek voters overwhelmingly rejected the terms of an international bailout.

The Dow Jones Industrial Average is seen opening down by around 130 points, while the S&P 500 is expected to open around 14 points lower.

Greek ‘no’ vote sends investors to the exits, but no signs of all-out panic

European stocks fell on Monday, but losses were capped by the surprise resignation of Greek Finance Minister Yanis Varoufakis, which boosted hopes of a deal between Greece and its creditors.

In addition, analysts pointed to the fact that a degree of pessimism on the vote had already been priced into markets.

On Sunday, more than 60% of Greeks voted to reject the terms of the Eurozone bailout

Early on Monday, Varoufakis said he was resigning at the request of Prime Minister Alexis Tsipras, in an attempt to clear the way for a deal to be made with Greece’s creditors.

The move surprised investors, as he had previously said he would step down in the event of a ‘yes’ vote.

Varoufakis said in a blog post that he had been made aware that certain members of the Eurozone would prefer him to be absent from meetings, “an idea that the prime minister judged to be potentially helpful to him in reaching an agreement”.

Varoufakis has clashed with Greece’s creditors over their demands for tough austerity measures.

“Stocks are off their lows since the announced departure of Greece’s finance chief Yanis Varoufakis, which could mean more amiable negotiations,” said Jasper Lawler, market analyst at CMC Markets.

“Following the ‘no’ vote, the chief worry is over the liquidity of Greek banks. Markets could get soothed or agitated later on Monday when the European Central Bank announces its plans for emergency lending to Greek banks. Most likely, the ECB will try to remain as apolitical as possible by maintaining the ELA at current levels rather than ending it or extending it based on the referendum outcome,” he added.

The dollar was stronger against the euro and little changed against the yen and the pound, while gold futures were down 0.3% at $1,164.80.

Oil prices tumbled, with West Texas Intermediate down 4.8% at $54.18 a barrel and Brent crude 2.3% weaker at $54.25 a barrel.

Monday data

Economic data are thin on the ground, with ISM non-manufacturing the only release of note due on Monday at 1500 BST. The index is expected to have risen to 56.8 in June from 55.7 in May.

On the corporate front, third-quarter numbers are due from A. Schulman Inc.

Aetna shares fell 3% in pre-market trading after the company said on Friday that it would buy Humana for $37bn.

Later on in the week, earnings are due from Alcoa, PepsiCo and Walgreens Boots Alliance.