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