After days of fretting about whether or not Greece would default on its debt, stock markets have shrugged off news the country had missed a key repayment deadline.
Greece was due to repay 1.6 billion euros ($A2.31 billion) to the International Monetary Fund at 0800 AEST on Wednesday, but missed the deadline despite the country's efforts to strike a last-minute deal with its creditors.
But the reaction on financial markets was surprisingly muted.
Wall Street finished slightly higher, the Australian dollar strengthened and Australia's stock market is so far solidly in positive territory.
As of 1235 AEST the S&P/ASX 200 was up 36.9 points, or 0.68 per cent, to 5,495.9, while the All Ordinaries was up 34.7 points to 5,488.6.
That's partly because markets across the world have already had their reaction.
Australia's two main indices plunged more than two per cent on Monday, a move mirrored on Wall Street and throughout Asia, while European markets fell even harder amid fears Greece would miss its payment deadline.
But Wednesday's muted reaction is also because the missed IMF payment isn't quite the doomsday scenario some had imagined.
Importantly, the IMF doesn't classify the missed payment as a default, which could trigger a chain reaction of cross defaults with other creditors.
Instead, the IMF says the country is in arrears - overdue debt.
Ratings agency Standard and Poor's also says the country isn't in default yet, but would be if it misses a payment to private sector lenders on July 10.
"We would declare a Greece default if and when the Greek central government missed a payment on a commercial obligation," the agency said in a note.
IG Market Strategist Evan Lucas said the comments from S&P had helped calm investors.
"I think that's a key factor as to why markets are slightly positive," he said.
But Mr Lucas said the market reaction would be considerably more brutal if Greeks vote against austerity measures at a referendum on Sunday.
A vote against the European Union/IMF imposed reform package, which includes further cuts to pensions and tax hikes, would deny Greece access to further bailout funds and could lead to its departure from the euro zone.
"If there is a no vote then we've got a really interesting question, because that would be suggesting that Greece would leave the euro zone and that's a position the market hasn't gotten itself into," Mr Lucas said.
Most economists and market watchers are downplaying the chances Greeks will vote against the reforms.
Opinion polls have consistently shown most people want to remain in the euro zone.
Investment bank BNP Paribas puts the chance of a vote against the package succeeding at just 25 per cent.
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