US Stocks Fall as Greek Crisis Worsens

29 Jun 2015 | Author: | No comments yet »

Global stocks go for a tumble after Greece closes banks.

The Hellenic Chamber of Hotels said: “These recent developments in our country already have immediate, real negative consequences on tourism. U.S. stocks fell and Treasury bonds advanced Monday, as a worsening in Greece’s debt crisis jolted global markets and pushed the country closer to an exit from the eurozone.Beijing: Global stock markets sank Monday after Greece closed its banks and imposed capital controls in a dramatic turn in its struggle with heavy debts.In a fateful climax to five years of funding crisis, Greece has been cast into extraordinary uncertainty after Prime Minister Alexis Tsipras called a referendum on the country’s debt conditions over the weekend.

All must understand this.” “We wish and hope that all political forces will assume their responsibilities, restoring the country as quickly as possible to normality and stability, which are absolutely essential requirements to protect Greek tourism and to support one more time the national recovery effort of the Greek economy.” The hotel association says it is working with other tourist industry bodies to “safeguard the country’s international image and to deal with any instances of exploitation of the current situation.” The Athens Stock Exchange is closed all week, but the country’s government borrowing rates in bond markets are taking a pounding as uncertainty over Greece’s future hit markets worldwide. Oil prices declined and the euro edged down after Athens announced the moves to stanch the flow of money out of Greek banks and pressure creditors to offer concessions before a bailout program expires Tuesday.

What is at stake is whether or not Greeks want to stay in the euro zone (or) take the risk of leaving,” Francois Hollande told reporters after an emergency cabinet meeting. He reiterated that Paris was prepared to work with the Greek authorities to find a deal that would stave off financial disaster and noted that the two sides were not far from a deal when Athens broke off talks. He sought to ease fears that the Greek chaos could spread as far as France, as stock markets around Europe plunge and borrowing costs of vulnerable countries rise. “Today, the French economy is robust, much more robust than it was four years ago and it has nothing to fear from what could happen,” assured Hollande.

Acknowledging “concerns” on the financial markets, he recalled that “very significant steps have been taken in recent months to shore up the eurozone”, pointing in particular to the banking union. Greece’s next debt payment is due on Tuesday to the International Monetary Fund, and the eurozone has rejected a request for a one-month extension to its bailout. “Nobody really expected the situation to be as dramatic as it is,” said Rebecca O’Keeffe, head of investment at Interactive Investor. “The prospect of Greece exiting the European Union has increased significantly,” she added.

The official says Tsipras told Juncker that preventing the Greek people’s democratic expression by shutting down the banks is not within Europe’s democratic tradition. U.S. intelligence agencies believe there is a strong possibility that the Assad regime will use chemical weapons on a large scale if Islamist fighters threaten Syrian government strongholds.

And it comes at a time when many investors remain worried about elevated valuations on stocks, the slow pace of earnings growth and the path of U.S. interest rates. Greek withdrawal from the euro could lower Asian economic growth by 0.3 percentage points next year due to disruption in trade and financial markets, Biswas said. Britain’s prime minister sees Sunday’s referendum in Greece as essentially a vote on remaining in the eurozone – and that it is for the Greek people to decide. The intelligence is “being taken very seriously because he’s getting desperate” and because of doubts within the U.S. intelligence community that Mr. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles.

In yet another monetary easing, the People’s Bank of China cut the benchmark lending and deposit rates and reduced the amount of funds some banks are required to hold in reserve. China’s rate cut, the fourth since November, appeared to be aimed at reassuring investors after a plunge in share prices last week, rather than boosting economic growth, analysts said. The timing is “rather market-friendly” and appears to be meant to “provide a support to the market sentiment,” said Credit Suisse economists Dong Tao and Weishen Deng in a report. The stronger dollar will continue to weigh on profits for multinational companies, but should also spur economic growth in Europe, said Diane Jaffee, who oversees about $7.7 billion as a senior portfolio manager at TCW Group Inc. “When we talk to our companies, they would much rather take a 10-15% translation impact and have the eurozone in general be helped by a lower euro,” she said. “A year ago, before quantitative easing in Europe, there were fears that there wouldn’t be any European sales at multinational companies,” she added.

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