The 8am today deadline for Greece to repay a 1.55 billion euro repayment to the IMF passed without any news about whether the payment had actually been made. No one expects Greece to make the payment, but there’s confusion as to what happens next.
Greece made another attempt to delay the inevitable by asking for a 29 billion euro third bailout – a request that was rejected by the rest of the eurozone. The referendum this Sunday seems to be the next big hurdle.
Our market will start lower, according to the overnight futures trading with a loss of more than 20 points tipped. Local investors will have to contend with a fall in the price of iron ore under $US60 a tonne. The price dipped 2% to $US59.30.
Greek banks and the stockmarket remain closed, and later today the European Central Bank will consider the situation of Greek banks and whether any more emergency aid can be made, or whether they are now in danger of being declared insolvent (meaning they can’t be assisted).
US markets ended higher (after their European counterparts had another losing day), but the early morning gains were cut sharply by late nerves over Greece and confusion about just what is happening.
The S&P 500 ended a volatile session slightly higher, up 5.45 points, or 0.3%, at 2,063.0. The Dow added 22.82 points, or 0.1%, to 17,619.17 (it was up more in the morning).
The Nasdaq Composite added 28.40 points, or 0.7% to 4,958. The tech-heavy index booked a 1.6% monthly loss, but finished the quarter 1.8% higher and is up 5.3% so far this year.
The S&P 500 ended the quarter lower ending a nine-quarter winning streak. Monthly losses for both the S&P 500 and Dow industrials – 2.1% and 2.2% respectively – were the worst since January. At the half-year mark, the S&P is 0.2% higher, while the Dow lost 1.1%.
Oil was a touch firmer overnight. August crude futures added $1.14, or 2%, to settle at $US59.47 a barrel in New York. They are up 11.6% for the first half of the year. For the month, prices lost 1.4%.
Comex gold for August delivery fell $US7.20, or 0.6%, to settle at $US1,171.80 an ounce. Gold lost 1.5% in June and is down 1.1% for the first half of 2015.
Comex September silver fell 11.4 cents, or 0.7%, to $US15.581 an ounce – for a year-to-date loss of 0.1%. Comex September copper fell 1.85 cents, or 0.7%, to $US2.615 a pound. Prices lost about 7.5% for the first half of the year as Chinese buying slowed sharply.
European stocks fell overnight, ending the worst quarter for three years, thanks to those fears about Greece.
The Stoxx Europe 600 fell 1.3% to 381.31 overnight.
The fall left the index down 4.6% for June, its steepest monthly decline since June 2013. And it lost 4% during the second quarter, marking the worst quarterly performance since the second quarter of 2012, according to FactSet.
Ahead of the suspension of trading last Sunday, the Greek stockmarket was up 2.8% for the quarter – that won’t last when and if trading resumes.
Germany’s DAX 30 fell 1.3% to 10,944.97, overnight for a loss of 8.5% in the June quarter. France’s CAC 40 lost 1.6% to 4,790.20, and closed the quarter with a 4.8% slide.
Spain’s market lost 6.5% and Italy’s lost 3%. In London, the FTSE 100 sank 1.5% to 6,520.98, and lost 3.7% for the second quarter and 6.6% for the month.
