Asian shares plunged in the trading session today on the back of reports of the European Union ending talks with the Greece government and the surprise move by Prime Minister Alexis Tsipras calling for a referendum over the bailout on Sunday evening. Most Asian indices plunged by close to 3 percent in the trading session today. Asian emerging markets were hard hit along with Asian currencies as traders and investors moved away from volatile currencies towards the safe haven dollar trade. Base metals during Asian trade plunged as fears of a Greek default led many to believe that the Eurozone economies could be pushed back into a recession which would impact the demand situation. The Chinese equity markets plunged during the trading session today and were unable to sustain at higher levels even after it was announced that the Central bank had cut interest rates for the fourth time since the beginning of the year. The move, many believe was on expected lines. The rate cut was unable to save the Chinese markets which plunged by close to 3 percent on the back of fears of a Greek debt default which many believe would lead to a derailment of the global economy and could lead to lower demand for Chinese manufacturers in the near term. According to technical analysts on the street, the Chinese equity markets have entered a bear phase as it has corrected by more than 20 percent from its recent high. Most analysts and traders would be closely watching the Greek referendum results on July 5th as many believe that a “NO� answer by the Greek population could lead to Greece exiting the Eurozone which would lead to a massive sell off in the credit markets around the globe which is being seen as a huge negative.

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