Posted on 06/29/2015 4:26:42 AM PDT by expat_panama
The deepening Greek crisis hit global markets on Monday, as the country imposed capital controls ahead of a national referendum on creditors' bailout conditions.
Uncertainty surrounding the country's economic future dragging equity markets lower. European markets were trading sharply lower, with the pan-European Stoxx 600 (^STOXX) falling around 2.4 percent in morning trade. Both Germany's DAX (^GDAXI) and France's CAC (Euronext Paris: .FCHI) fell nearly 3.5 percent.
U.S. futures also indicated a lower open, with the Nasdaq (^NDX), S&P (^GSPC) and Dow Jones Industrial Average (Dow Jones Global Indexes: .DJI) all seen opening down over 1 percent.
Greece's main stock exchange is expected to remain closed all week - along with the country's banks - but banking stocks elsewhere in Europe were hard hit on Monday. Portugal's Banco Comercial Portugues (Euronext Lisbon: BCP-PT) was down nearly 9 percent, while Italy's Banca Monte Dei Paschi Di Siena (BMPS (Milan Stock Exchange: BMPS-IT)) lost 7.1 percent.
Growing fears of a Greek default were reflected in the sovereign debt markets, with yields on Greek government debt spiking. The 10-year yield hit 14.5 percent, up 367 basis points - its highest level since December 2012.
Peripheral bond yields also rose, with Portugal, Italy and Spain's 10-year yields all up on the day.
The yield on Germany's benchmark 10-year Bund, meanwhile, fell 13 basis points to around 0.78 percent. And U.S. Treasury yields also slipped amid a flight to safe-haven assets.
The euro (Exchange:EUR=) was also down against the dollar, falling 0.5 percent to trade around 1.1106.
Deutsche Bank's Francis Yared warned of a "pronounced" risk-off move in markets.
[SNIP]
It comes ahead of a referendum on Sunday, July 5, which will see citizens vote on bailout terms set out by the European Commission, International Monetary Fund (IMF) and European Central Bank.
(Excerpt) Read more at finance.yahoo.com ...
Deja vu replay time, here's where we are at a couple hours before opening bell (from here):
| Financials +0.96% |
Softs +0.44% |
Meats +0.03% |
| Currencies -0.02% |
All Markets -0.14% |
Grains -0.30% |
| Metals -0.48% |
Energies -0.86% |
Indices -1.12% |
It times of fear, what do the big boys buy?
If any other explanation makes sense, I'd like to know.
The markets discounted for Greece a long time ago.
Someone get the Austrian translator in here!
Our 'not making sense' list ought to have "rigged" right up there at the top. Let's think together. In a market the only way to lower prices is to offer to sell at a lower price. If our "big guys" sell at a lower price then they've lowered the market transaction price. That also means they can't buy.
Why can’t they buy? If metals are sold at an artificially low price, they can buy metals and dump stocks before everyone else does if there’s a crisis. I read somewhere that the per-ounce cost of silver is less than it costs to mine and mint it. Does that make any sense?
Yeah, we need someone who speaks Austrian to help us with talking to the Australians...
This is more concerning to me than Greece
China Stocks Fall Into Bear Market as Rate Cut Fails to End Rout
http://www.wsj.com/articles/asian-shares-fall-as-greece-unravels-1435540973
Who? Are you talking about the "big guys"? Are we saying the big guys sell to artificially lower the price and they also buy at the same time? The way transactions work is someone has to buy at a price that some other seller wants and can't get elsewhere.
btw, while our friends in the futures markets are making contracts assuming a lower metals price, right now gold is trading $5/oz higher than it closed last Friday.
So much for futures traders....
--and rate cuts always boost the stock market!!!
“with yields on Greek government debt spiking. The 10-year yield hit 14.5 percent, up 367 basis points - its highest level since December 2012. “
I can’t figure out why yields aren’t at least 8000%.
Yeah, that rate level suggests that bond traders see say, only a one out of ten chance of default per year. Traders can’t be idiots. At least not for long that is...
Gold is down. NUGT is at a 5 year low. Why isn’t gold a safe haven? The only thing on my radar looking good is TZA.
Because it is priced in dollars and the dollar is going UP on Euro troubles.
Your gold would be doing great if you had bought it in Euros and were converting it as such.
As for stocks in general my bet is that IBD may switch the outlook from "under pressure" to "correction", which in recent memory means the beginning of an uptrend.
10 yr note was up big today.
Added to my portfolio of RDS/B today.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.