Shares fell, the euro stumbled and yields on weaker euro zone economies' bonds rose after Greece overwhelmingly voted against conditions for a rescue package, but there was no rout and contagion was limited.
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Four great crises around Europe's fringes threaten to engulf the European Union, potentially setting the ambitious post-war unification project back by decades.
Bundesbank chief Jens Weidmann has warned Angela Merkel's cabinet that a Greek exit from the euro zone would rip billions of euros out of the German budget, German business daily Handelsblatt reported on Sunday, citing government sources.
If fear of Europe-wide financial wildfire was Athens' trump card in its standoff with euro zone creditors - then the card has now turned up a dud.
Germany's finance minister said on Wednesday there was no prospect of the euro zone reaching a deal with Athens next week on economic reforms that would unlock bailout funds, potentially leaving Greece perilously short of money.
Chances of Greece leaving the euro zone in the next 12 months are the highest since late 2012 even though Athens's financial lifeline has been extended, a survey of investors based mainly in Germany showed on Tuesday.
Greece's new leftist government and its international creditors failed to agree on a way forward on the country's unpopular bailout and will try again on Monday, with time running out for a financing deal.
European stocks dipped and low-rated bond yields rose on Monday after dismal Chinese trade data and signs of increasingly fraught relations between Greece and its international creditors kept investors cautious.
The euro skidded to an 11-year low and stock prices fell on Monday as Greece's Syriza party promised to roll back austerity measures after sweeping to victory in a snap election, putting Athens on a collision course with international lenders.
British elections in May could arguably have as much impact on euro zone stability as this month's snap poll in Greece, making for an anxious period of up to six months for European investors.
