Euro zone shares fall nearly 2% after Greek 'no'

Top euro zone shares fell 1.7% in early trading on Monday after Greek voters rejected austerity measures demanded in return of a debt deal, raising concerns about the country's possible exit from the euro zone.

Banks were the worst hit, with the Euro STOXX banks index down 2.3%. Italian banks including Unicredit were down 3 to 4% while Portugal's Banco Comercial Portugues fell 3%.

J.P.Morgan economists reckon the outcome of Sunday's referendum will probably hasten Greece's exit from the euro. 

Monday's fall was not as strong as some had expected, however, considering markets had been betting on a rapid resolution going into the weekend.

"Markets have yet to be convinced in full either that the (Greek) exit door will be open or that the extent of any contagion from this could be irreparably damaging to the system," said Neil Williams, chief economist at Hermes
Investment Management.