The local sharemarket has been wiped out again today.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has fallen another 1.8% in what has been a violent reaction to Greece's "No" vote over the weekend. The benchmark index plummeted to a low of 5436 points, adding to the damage suffered by local investors on Friday as the market plunged 1.1%.
Leading into Sunday's referendum vote, many analysts were expecting Greece to vote "Yes" to continued financial support from the Eurozone. Instead, the embattled nation voted an emphatic "No" which increases the chances of the country leaving the Eurozone. What happens next is anybody's guess, which is exactly why the market is responding so violently in the face of uncertainty.
Australia's banks are amongst the biggest companies to have been sold off as investors frantically move their funds to other, safer investment alternatives (e.g. cash, gold). Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd. (ASX: NAB) have lost 1.3% and 1.1% respectively, while Australia and New Zealand Banking Group's (ASX: ANZ) and Westpac Banking Corp's (ASX: WBC) losses ballooned out to 1.5% and 1.8%, respectively.
Unfortunately, the situation currently unfolding in Europe isn't the only thing playing on the mind of investors. Investors are also concerned about how the plummeting Chinese markets will impact the local economy, together with weak consumer spending numbers and weakening commodity prices.
Indeed, iron ore fell a further 0.7% during the latest session to trade around the US$55 a tonne mark, with some analysts suggesting it will fall below US$40 a tonne before the end of the year. Fortescue Metals Group Limited (ASX: FMG) fell 3.3% to $1.76 after hitting a six-year low earlier in the session, while BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) crashed 2.1% and 1.9% respectively.
Elsewhere, Wesfarmers Ltd (ASX: WES), Woolworths Limited (ASX: WOW) and Woodside Petroleum Limited (ASX: WPL) got swept up in the tidal wave, falling between 0.9% and 1.8%.
While there is no telling just how the Greece situation will impact the global economy, there is also no way to know how long or how severe the local sell-off will be. Given the high level of uncertainty surrounding the market, investors should brace themselves for more volatility over the coming days, and maybe even weeks.