Greece Intends To Hold A Referendum &Nbsp; The European Stock Index Fell 3.46% On Tuesday.

Beijing time on November 2nd morning news, Tuesday media reported that the Greek government intends to European Union The national leaders' latest aid package reached a referendum last week, which worried that the new phase of the aid plan could not be pushed forward, and the European stock market was heavily sold by investors, especially against the financial sector that had been hit hard. The European stock index fell 3.46% on Tuesday.

Greece will vote on Eurobond referendum and European and US stock markets will fall.

The pan European Dow Jones index closed down 3.46% at 235.06 on Tuesday. US stock market European shares index The Dow Jones Industrial Average fell by more than 2.45% when the crash hit the close of the European stock market.

Greece's ASE composite index fell 6.92% to 752.65 at the time of adverse market sentiment, while the Italy financial times MIB index fell 6.80% to 14928.24 points: Italy's ten year treasury bond yield soared to 6.3% above its worries about financing capacity, and the euro fell by 1.22% against the US dollar in the same period.

Tuesday's sharp fall began from the opening of the European stock market. Greek Prime Minister Papandreou announced late Monday that Greece will hold a referendum on the aid agreement reached between the government and the EU during last week's summit. Under this agreement, the private sector holders of Greek bonds will receive a 50% investment discount.

Reported that this round of referendum is likely to be carried out in January next year, which actually caused great uncertainty in Europe's efforts to restrict the spread of regional sovereign debt crisis. This widespread market anxiety is also the reason for the soaring cost of borrowing in Italy on that day. Jordan Lambert, a trader at the dealer rate exchange rate, pointed out that "considering the consistent attitude of Greece and Germany in promoting this long-awaited agreement, it is totally unnecessary to destroy all the progress made so far to make a referendum." (Jordan Lambert) There is no doubt that such a practice will bring severe market volatility.

In a statement Tuesday, Fitch said in a statement on Tuesday that if the EU's latest aid package was rejected by Greek referendums, the risk of compulsory and completely disorderly debt default would be greatly increased, even leading to the withdrawal of Greece from the euro area.

In the main regional index, the German DAX 30 index fell 5%, closing at 5834.51 points, the French CAC 40 index fell 5.38%, closed at 3068.33 points, and the financial times 100 index fell 2.21% to 5421.57 points.

French bank shares, which are more risky in Greek bonds, were again hit hard: GLE fell 16.23%, Paris's BNP fell 13.06%, Greek Piraeus Bank (TPEIR) fell 5.24%, Alfa Bank (ALPHA) fell 11.11%, and Greek National Bank (NBG) fell 14.53%.

Other stocks in the financial sector: Holland International Group (INGA) fell 14.43%; Portuguese Commercial Bank (MBC) fell 13.55%; Italy United St Paul Bank (ISP) fell 15.80%.

Credit Suisse Group (CS) announced its third quarter earnings on Tuesday, although its net profit was 12% year-on-year growth, but still less than market expectations and shares fell 8.20%: Credit Suisse Group announced new cost reduction measures including large-scale layoffs on the same day.

Other companies reported that British Barclays Bank (BARC) was downgraded to the holding by the Swiss bank group and its stock price fell by 9.50%. The security service company G4S (GFS) decided to stop buying the Danish ISS group and its share price rose by 0.41%. The French telecom equipment manufacturer, Carter lucent (ALU), was downgraded to Morgan, and the stock price fell 7.45%.

Latest progress: Papandreou: the outcome of the referendum will decide whether Greece stays in the euro area.

Greek Prime Minister Papandreou told government officials today that his plebiscite plan will confirm that Greece will continue to exist in the eurozone and the European Union as a member of the eurozone. Papandreou said the plan would clearly convey the message. According to the e-mail draft of Papandreou's cabinet meeting, Papandreou said, "the dilemma faced by Greece is not" this or another government ", but" agree or disagree with the loan agreement "," agree or disagree with the European Union "and" agree or leave it in the euro area ".