U.S. stocks traded around the fractionally lower line this afternoon after erased most of their earlier losses, even turning positive briefly, as investors largely brushed off news that Greek citizens resoundingly rejected creditors' conditions for further financial aid.
Oil prices tumbled their most in three months today, with U.S. crude falling 5 percent and the U.S. dollar also falling unexpectedly.
Here is the current market situation from CNN Money
North and South American markets are lower today with shares in Brazil off the most. The Bovespa is down 0.86% while Mexico's IPC is off 0.74% and U.S.'s S&P 500 is lower by 0.52%.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
ATHENS/FRANKFURT (Reuters) - Greece's combative finance minister resigned on Monday, removing one major obstacle to any deal to keep Athens in the euro zone after Greeks voted resoundingly to back the government in rejecting the austerity terms of a bailout.
What do you do when two policy rate cuts, $19 billion in committed support from a hastily contrived broker consortium, and a promise of central bank funding for the expansion of margin lending all fail to quell extreme volatility in a collapsing equity market?
Well, you can simply ban selling, which is apparently the next step for China.
According to Caijing, the country's national social security fund is now forbidden from selling (but is welcome to buy). Here's more, via Caijing (Google translated):
Social Security informed the public fund social security portfolio not only buy sell stock
"Financial" reporter learned that the Social Security Council on Monday (July 6) Call each raised funds, social security portfolio is not allowed to sell their holdings of stock.
Sources said that Social Security Council has just informed all social security portfolio can only buy stocks can not sell the stock; and it is not defined as the net selling, but completely unable to sell the stock.
And a bit more from FT:
Financial magazine Caijing reported on Monday that the National Social Security Fund had told its external fund managers they could buy stocks but were not permitted to sell them.
Central Huijin, a unit of China's sovereign wealth fund, also said ...
NEW YORK (Reuters) - Aetna Inc's chief executive said Monday he was confident an antitrust review of the health insurer's proposed purchase of smaller rival Humana Inc would allow the deal to close in the second half of 2016, seeking to allay investor concerns.
As we have repeated since January, and certainly on numerous occasions over the weekend, at this point the only variable is what the ECB will do: will it give insolvent Greek banks more aid, or will it increase its ELA collateral haircut (or even withdraw it altogether), the ramifications of which action would have a dire impact on contagion within the rest of the periphery but most certainly on both the Greek financial system as well as Greek society which is now facing an indefinitely period of capital controls.
A quick reminder: this is how we laid out the dynamic between Greece and the ECB in on January 31, which 6 months later, has played out precisely as forecast:
... today the ECB's Erikki Liikanen, tired of pleasantries and dealing with what to Europe is a completely incomprehensible and illogical stance, one which is essentially a massive defection by Greece in the European "prisoner's dilemma", and which while leading to a Greek financial collapse and Grexit - both prerequisites to a subsequent Greek economic recovery unburdened by the shackles of the Euro - would also unleash a European depression, came out and directly threatened Greece that it now has 1 month until the end of February to reach ...
NEW YORK (Reuters) - Oil prices tumbled their most in three months on Monday, with U.S. crude falling 5 percent, after Greece's rejection of debt bailout terms and China's rolling out of emergency measures to support its stock markets shook global markets.
China's aggressive response to plunging share prices undercuts its pledge to have the market play a decisive role in the economy and risks cementing investors' belief that Beijing will always bail them out.
Futures opened 33 points lower a little over 12 hours ago because, well, nobody had any idea how the Greek fiasco would play out (and still doesn't).
And then, moments ago the entire gap lower was closed as ES stormed into the green...
... on panic buying, or rather concerted selling of the VXX by the NY Fed ETF desk as noted earlier...
Kevin Henry has one job https://t.co/D7NcKIFXwc
â€" zerohedge (@zerohedge) July 6, 2015
... as well as on Citadel's massive spoofing of 10Y futures, which have been sold off in a straight line since the open of US trading.
Our suggestion to the PBOC: if you really want to rig markets higher, have Citadel open an office in Shanghai, and also bring Kevin Henry on for a 4-6 week sabbatical. He will show you hot to get the SHCOMP back to 5000 in no time.
FRANKFURT/BERLIN (Reuters) - Talks between Lufthansa and pilots' union Vereinigung Cockpit (VC) about taking a pay dispute to mediation have failed, raising the prospect of strikes at the height of the summer travel season, the union said on Monday.
SHANGHAI (Reuters) - Chinese stocks rose on Monday, as an unprecedented series of support measures unleashed by Beijing brought some relief to a market whose headlong slide over the past three weeks had raised fears about the stability of the world's second-biggest economy.
One year after Tomas Piketty sold a record number of economic textbook paperweights which virtually nobody read past page 26, once again showing the power of constant media hype, the French economist and wealth redistributor is out and about, this time pouring more gasoline on the fire started by the IMF last week when it released the Greek debt sustainability analysis showing Greece needs a 30% haircut, only to be met with stern resistance by, who else, Germany who know very well that should Greece get a debt haircut it will unleash the European dominoes which not even all the bluster and rhetoric of the ECB can halt.
And while Piketty's book may have sold out in socialist France, it seems Germany did not leave a pleasant taste in the celebrity economist's mouth, and in an interview with Germany's Zeit magazine, translated into English, the Frenchman just made sure he will never sell another book east of the Rhine. Here is the reason why:
When I hear the Germans say that they maintain a very moral stance about debt and strongly believe that debts must be repaid, then I think: what a huge joke! Germany is the country that has never repaid its debts. It has no standing to lecture other nations.
... Germany is really the single best example of a country that, throughout its history, has never repaid its external debt. Neither after the First nor the Second World War. However, it has frequently made other nations pay up, such as after the Fra ...
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