U.S. stock index futures are lower again this morning after three straight days of losses on rising speculation that the Federal Reserve will raise rates as soon as September. Markets are expected to open lower.
Here is the current market situation from CNN Money
European markets are lower today with shares in Germany off the most. The DAX is down 0.65% while France's CAC 40 is off 0.30% and London's FTSE 100 is lower by 0.18%.
European stocks are fractionally in the red, tracking losses in Asia and the U.S., triggered by bond market volatility, uncertainty over the future of Greece and concerns surrounding the impact of an interest rate rise in the U.S.
ATHENS/BRUSSELS (Reuters) - Greece handed its creditors new proposals on unlocking funds to keep the country from default, with Prime Minister Alexis Tsipras offering hope for a deal and warning the cost of failure would be enormous.
In attempt to bridge the gap between a proposal submitted by Greek PM Alexis Tsipras last Monday and a draft agreement devised by creditors the following day, Athens has reportedly submitted a new three-page plan focused on fiscal sustainability.
A second document was also submitted in which Greece has apparently proposed borrowing from the ESM to cover its obligations to the ECB in July and August. Those payments amount to around 7 billion.
The Greek government submitted a three-page budget proposal to its creditors in Brussels in a bid to unlock bailout funds, two international officials with direct knowledge of the discussions said.
The document covered only fiscal targets, one of the people said. Greece gave its creditors a separate note, also three pages long, on how to address the country's financing needs, in which the government asked to use funds from the European Stability Mechanism to repay about 6.7 billions euros ($7.6 billion) of bonds held by the European Central Bank that come due in July and August, the people said.
Greece has already received 129 billion from the EFSF. Borrowing from the ESM to pay the ECB is essentially borrowing from Europe to pay Europe, much as the country tapped its IMF SDR to pay the IMF in May. As an aside, May's IMF end-around depleted Greece's SDR to the tune of 95%. Its SDR holdings now amount to just 30 million. Greece's ESM paid in capital is around 2.2 billion.
At least one unnamed official who spoke to Bloomberg isn't optimistic:
AMSTERDAM (Reuters) - Dutch pension fund manager PGGM said on Tuesday Hewlett-Packard had agreed to pay $100 million to settle a class-auction lawsuit relating to the company's 2011 acquisition of Autonomy, a "big data" analysis company.
(Reuters) - Lululemon Athletica Inc raised its full-year revenue and earnings forecast, the latest sign that the Canadian yogawear retailer was recovering from the turmoil caused by an embarrassing recall of overly sheer yoga pants in 2013.
HONG KONG/LONDON (Reuters) - HSBC pledged a new era of higher dividends on Tuesday, laying out plans to slash nearly one in five jobs and shrink its investment bank by a third to combat sluggish growth across its sprawling empire.
(Reuters) - Henkel & Co KGaA AG and Coty Inc, both of which have personal care and cosmetics businesses, made binding offers to buy separate parts of Procter & Gamble Co's beauty businesses worth up to a total of $12 billion, according to people familiar with the matter.
After a quiet Asian session, where not even the latest Chinese CPI miss was enough to push the SHCOMP to new multi-year highs, all eyes were on Europe where a few hours ago the European Commission announced it had received not one but two new proposals from Greece according to EU Commissioner for Economic Affairs Pierre Moscovici, with the Greek government adding that it considers proposals submitted last week as remain basis for political negotiations. According to Bloomberg, the freshly submitted documents contains alternative proposals to close differences with creditors on fiscal gap with; proposals to create a debt viable sustainability plan for country. What they do not contain is an agreement to engage in pension cuts as the Troika demands so this is most likely another dead end path.
"Diverse proposals are being circulated including new suggestions which were received earlier this morning," spokesman Margaritis Schinas said, noting that Economics Commissioner Pierre Moscovici had met Greek delegates in Brussels on Monday. "The three institutions are currently assessing these suggestions with diligence and care," Schinas added.
However, barely had Europe received the Greek addenda when it nein'ed all over them, with BBG citing an international official directly involved in talks saying that the "Greek government's revised proposal to unlock bailout funds is vague rehash of earlier plans, not considered credible."
Also overnight, as reported previously, the headquarters of Deutsche Bank was raided earlier this morning and while no details were initially available, Reuters said that investigators were "looking for evidence related to client transactions" with a DB spokesperson saying the raid was in relation to "security deals made by clients." It was initially unclear what deals and what clients, but the raid may explain the sudden departure of DB's co-CEOs over the weekend.
Econintersect: The National Federation of Independent Business (NFIB)'s optimism index rose from 95.2 to 98.3. The market was expecting the index between 96.0 to 97.3 with consensus at 97.2. This index has returned to "normal" levels seen in times of expansion.
LONDON (Reuters) - European shares followed Asian stocks lower on Tuesday as speculation intensified that the U.S. Federal Reserve could raise interest rates sooner than many expect, though this failed to give the dollar a significant boost.
BRUSSELS (Reuters) - The European Commission has received a new proposal from Greece for reforms that could unlock new funding from the cash-strapped country and is now assessing it, an EU official said on Tuesday.
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