Morning MoneyBeat Europe: More Weakness Expected As Markets Mull Greek Vote

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Good morning Europe.

Stocks are expected to slide again from the open thanks to the additional uncertainty generated by Greece's referendum on its creditors' latest proposals. The vote is due on July 5.

The country is set to to miss a €1.5 billion ($1.7 billion) repayment to the International Monetary Fund on Tuesday.

European leaders are insisting that the referendum is a de facto vote on Greece's continued membership of the euro, while the government in Athens seems to think a vote against the proposals would strengthen its negotiating hand. Whoever is right, the gulf between the two remains unbridgeable, and the eurozone is heading further into uncharted territory.

On a brighter note, Asian stocks have at least managed to rise. Investors have focused on stocks with good links to their domestic economy, and also cast a hopeful eye at Beijing, wondering whether more economic stimulus might be in the offing.

The headlines from Athens and Brussels will decide how long-lived this strength turns out to be.

Market Snapshot: U.S. markets (Monday close) DJIA down 2%, Nasdaq down 2.4%, S&P 500 down 2.1%. Nikkei now up 0.5%. Brent crude up five cents at $62.06. Gold down $2.70 at $1.176.30. EUR/USD at $1.1187, USD/JPY at ¥122.36. 10 year Treasury yields 2.32%, Bund 0.80%, Gilt 2.32%.

Watch For: German jobless claims, U.K. GDP numbers (first quarter, final), Eurozone unemployment, and consumer price inflation numbers, From the U.S. we will see the Chicago Purchasing Managers Index and overall consumer confidence numbers for June.

What You May Have Missed on MoneyBeat

Why Central Banks Worry About Greece : Central bankers on both sides of the Atlantic will be watching Greek developments closely. But that’s not so much out of concern about systemic problems caused by a Greek default as about what happens to investors’ risk perceptions.

The Short Answer -What to Look Out For in Greece’s Referendum : Greek politicians have turned their back on any deal with their country’s creditors, and instead put Greece’s future in the eurozone in the hands of its voters. Here is what you need to know about the referendum.

Global Head of M&A Leaves Deutsche Bank : Deutsche Bank's global head of mergers and acquisitions is leaving the German firm after more than a decade

With Stocks Frozen in Athens, a Greek ETF Plunges in U.S .: Greece’s stock market is closed this week ahead of Sunday’s referendum on the latest bailout-package proposal. But investors are finding other ways to express their concern about the country’s plight.

From The Wall Street Journal

Greece to Default On IMF Payment Greece confirmed it won’t be able to make a $1.73 billion loan repayment to the International Monetary Fund due Tuesday, after its decision to call a bailout referendum cast the country into uncharted waters. Global stock markets declined after Athens imposed capital controls in a bid to prevent a banking collapse.

Oil Stocks Hit Two-Year High in Europe Hub More than 60 million barrels were stored at a network of storage tanks in the Dutch ports of Amsterdam and Rotterdam and Belgium’s Antwerp in June.

GE Strikes Multibillion-Dollar Deals to Sell Units General Electric has agreed to sell its U.S., Mexico, Australia and New Zealand vehicle-financing businesses to Element Financial for $6.9 billion, with a deal to unload its European fleet business also in the works.

Study Suggests Google Search Results Harm Consumers New research by two U.S. academics suggests that Google is harming Internet users and violating competition laws by skewing search results to favor its own services.