U.S. stocks fell today, as a worsening in Greece's debt crisis jolted global markets and pushed the country closer to an exit from the eurozone. Markets have pierced the lower Bollinger line, also closing below 145 DMA and just above the 200 DMA. The U.S. dollar is testing major support as is WTI oil. The DOW is down 350 points, NASDAQ is down 122. But don't despair, markets will be up tomorrow as a rebound correction.
Todays S&P 500 Chart
Stunned Greeks faced shuttered banks, long supermarket lines and overwhelming uncertainty on Monday as a breakdown in talks with international lenders plunged their country deeper into an ongoing international crisis.
Stocks have fallen sharply in Europe and Asia as Greece's difficulties spread worries about possible broader harm to global financial systems. A collapse in Greek bailout talks has intensified fears that the country could be the first to exit the euro zone. European officials said a deal was still possible to settle Greece's debt crisis, but gave no indication that it could happen before Greece runs out of cash to pay loans due Tuesday.
General Electric has agreed to sell its U.S., Mexico, Australia and New Zealand vehicle-financing businesses to Element Financial for $6.9 billion, with a deal to unload its European fleet business also in the works.
Last week we took an in-depth look at how China's bewildering hodge-podge of hastily construed easing measures can't seem to get out of their own way. Perhaps the most poignant example of this is how the country's massive local government debt swap effort â€" which, as a reminder, aims to restructure a provincial government debt load that amounts to 35% of GDP â€" is effectively making it more difficult for the PBoC to keep a lid on rates, even as the central bank has embarked on a series of policy rate cuts, with the latest effort coming over the weekend. Here's how we described the situation last week:
Because the central government is ultimately responsible for guaranteeing local government debt, and because yields on the new muni bonds are so close to those on treasurys, the newly issued local government bonds are really just treasury bonds, meaning that, in essence, the supply of Chinese government bonds is set to jump by CNY2 trillion in the coming months. If all of the local government debt ends up being refinanced, the end result will be the equivalent on CNY20 trillion in additional treasury supply.
Or maybe more, according to Nomura, who estimates the burden may be closer to CNY23 trillion. As we saw on Monday, the PBoC has now effectively lost control â€" that is, the central bank's latest policy rate cuts failed to arrest the rapid collapse in Chinese equity prices, meaning monetary policy in China, having long ago failed to shore up the decelerating economy, is now utterly ineffective at propping ...
WASHINGTON (Reuters) - MetLife asked a federal judge on Monday to force the U.S. government to hand over 500 pages of confidential records that relate to financial regulators' decision to designate the insurance giant as systemically important.
NEW YORK (Reuters) - Jeffrey Gundlach, a widely followed investor who oversees DoubleLine Capital, said in an interview on Monday his firm had purchased "lots of Treasuries and Ginnie Maes" on Friday, ahead of new developments in the Greek and Puerto Rico crises.
PARIS (Reuters) - The chief executive of French engineering group Alstom SA is confident the planned sale of the group's power business to General Electric Co will win European Union approval, he was quoted saying in a newspaper interview.
Econintersect wants your comments,
data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.
Econintersect Live Market
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com