Banks, utilities seen bearing brunt of Greek vote jitters

Greek Finance Minister Yanis Varoufakis removes his helmet as he arrives on his motorbike prior to a meeting at the office of Prime Minister Alexis Tsipras in Maximos Mansion in Athens, Greece, July 1, 2015. REUTERS/Jean-Paul Pelissier

LONDON (Reuters) - Europe's stock market has shown few signs of panic ahead of a referendum this weekend that may decide Greece's future in Europe. But investors in bank and utilities stocks should prepare for a bumpy road ahead.

While Greece does not loom large on Europe's corporate radar in terms of direct exposure, any post-vote indirect spillover from credit markets is expected to knock banks via their bond portfolios - especially those holding Southern European debt. Bond-like utility stocks are also vulnerable to rising yields.