Global markets slide on Greek crisis fears

CNBC ^ | Jun 29, 2015 | Kalyeena Makortoff

[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.

[NeoCaveman]

Flight to safety. We’ll see new highs (and lows in yields) if the GREXIT happens.

Same with the VIX too.

[expat_panama]

huh, today was a profit taking day for me. Sure, there’ll most probably be a huge rebound tomorrow but volatility just isn’t what I prefer when it comes to market condx.

[Brown Deer]

[WashingtonSource]

Bump

[expat_panama]

The Wash. Examnr. needs to explain a couple things about that data plot. One is why they say US debt/GDP is now 75% and will reach 100% in 2030 when the Federal Reserve says it's already 103% now.  The other is how they can know what's going to happen a quarter century from now?