Dow-1.95% S&P-2.09% Nasdaq-2.40% Russell-2.58% VIX @ 18.85 +34.45%
US Market closed lower pushed by Greece No to the Eurogroup, following all other markets (DAX Index (-3.6%) and Spain's IBEX (-4.6%). Japan's Nikkei dropped 2.9% while China's Shanghai Composite fell 3.3%)...Utilities Outperform most of the day but closed -0.6%...Financials -2.4%, Materials -2.4%, Healthcare -2.3%, Consumer -2.3% ...VIX made a huge move +34.45% @ 18.85...Volume were above average @ 853mil shares...US After Hours APOL -6.7%, HELI -6.4%, GTI -0.2% following earnings/guidance...Shanghai Composite resumed its steep decline in the early going, falling by as much as 5% below 3,850, but heading into its midday break the index has impressively returned all the way back to its unchanged levels above 4,050, and trading almost 4,150 now +2.5%, PBoC has injected another CNY50B in liquidity through 7-day reverse repos and also lowered the offering yield by 20bps to 2.5%. Earlier, local press also reported regulators are considering allowing the country's pension fund to invest in A-share market. Despite Securities Finance Corporation (CSF) determination earlier that risks of margin trading is within control, Shanghai Exchange also announced a halt in margin trading for select stocks. Note that the out-of-control margin investing in the retail space along with the rich IPO pipeline have been widely cited as the key culprits in this extreme China selloff. There were no updates out of Greece as the formal deadline for IMF payment is few hours away...Sony -7.5% Quantas +4.5%...Lenovo +4.8%
Nikkei +0.48% Hang Seng +1.22% Shanghai +2.5%
Eur$ 1.1196 JPY 122.30 GBP 1.5723 EURCHF 1.0411 RUB $55.7687 WTI $58.23(-0.17%)
S&P +0.24% EuroStoxx -0.52% Dax-0.52% SMI -0.65%
Macro :
- Greece Cut to CCC- From CCC by S&P, Outlook Negative
- Greece May Seek Injunction to Block Euro Expulsion: Telegraph
- Grexit Can No Longer Be Excluded, ECB’s Coeure Tells Les Echos
- Norway Wealth Fund Has NK3.7b in Greek Stocks: Finansavisen
- Ifo’s Sinn Says Greece Would Recover If Exits Euro: Handelsblatt
- PBoC to inject CNY50B in 7-day reverse repos (2nd consecutive injection) at lower yield of 2.5% v 2.7% prior
Keep an eye on :
- AIR FP : Qantas A380 Grounded in LA After Hydraulics Problem: SMH
- AR4 GY : Aurelius to Buy Back Up to 9.1% of Shares Under New Program
- DSY FP : Dassault Systemes CEO Charles Sees Strong Dynamic in China
- DTE GY : EU in preliminary deal to scrap mobile roaming fees by mid-2017 http://reut.rs/1NrBCP9
- EKT SM : Soros, March Family, Blackrock to Invest in Euskaltel: Expansion
- GXI GY : Gerresheimer Adjusts 2016-2018 Outlook on Sale of Tubing Ops
- SDF GY : Potash Offer for Germany’s K+S Seen as Too Low: Handelsblatt
- SDF GY : Potash Outlook to Negative by Moody’s, A3 Ratings Affirmed
- LEO GY : Leoni may make acquisitions to gain new client or expand presence in America, Asia-Pacific - Boersen-Zeitung
- LHA GY : Lufthansa will use Eurowings as acquisition platform (Air Dolomiti / Brussels Airlines) - Boersen-Zeitung
- RI FP : Pernod Ricard EMEA Says 2014-15 Growth to Be Slower Than 2013-14
- PUB FP : Publicis Worldwide President Sadoun to Oversee MSLGROUP
- RIO LN : Ex-Xstrata CEO’s X2 Said to Be in Talks With Rio on Coal Mines
- ROG VX : Genentech Positive Results for Ocrelizumab in 2 Phase 3 Studies
- GLE FP : Societe Generale looking to buy leasing company in Turkey- Dunya
- SONY (6758 JT) : -7.5% Sony Announces Plan to Sell Shares, Convertible Bonds (440bil Yen)
- TOM2 NA : TomTom could be on radar of Daimler, Audi, and BMW - Der Aktionaer
- MF FP : Wendel to Buy AlliedBarton Security for ~$1.67b From Blackstone