A situation where no government is formed may prompt fresh elections, while one that backtracks on austerity agreements may put the country's crucially needed bailout at stake. In either case, analysts say the chance of a Greek exit from the eurozone currency bloc can't be ruled out. 

"Greece is a big concern," said David Jones, chief market strategist at London-based IG Index, adding that such a situation would "definitely inject a lot of volatility into the market." Still, Jones cautioned that it may be awhile until the picture there becomes clearer and that many market participants are still in a "wait and see mode." 

Eurozone blue chips sold off by 2.1%. The euro fell 0.28% to $1.3015.