LONDON (TheDeal) -- Greece and China dominated European market movements Monday morning. European markets opened sharply lower after the Greek people voted by a landslide to reject the austerity measures demanded by their eurozone and International Monetary Fund creditors. French and German leaders will meet later today to discuss the way forward, amid divisions about whether now to press for Greece's exit from the euro. Other eurozone leaders will likely come together tomorrow.
Greece believes the resounding "no" vote will help it in future negotiations and force Europe to take a haircut on its bonds. But just in case, Greek finance minister Yanis Varoufakis has resigned, acknowledging that his relations with his European counterparts are now so bad he's seen as an obstacle to agreement. His resignation went some way to soothing the markets, which have since pared back some of their losses.
The FTSE 100 was down 0.59% at 6,546.79, while in Paris the CAC 40 was down 1.32% at 4,744.99. In Frankfurt, the DAX is down 1.09% at 10,937.97. In Greece, the Athens General Index was up a heady 2.03% to 797.52.
It was the opposite pattern in China. Shanghai and Shenzhen indices soared on the open after the Chinese government announced measures at the weekend to try to halt the three-week rout that has left the markets firmly in bear territory. The central bank provided liquidity, banks suspended IPOs and brokers committed to a $19 billion stabilization fund. But that worked only for a few minutes, and the markets were soon sliding back.