International stock markets crashed on Monday, June 29, as fears of a eurozone economic collapse soured investor sentiment.
A frustrating Greek crisis continues to hit the global markets, as the country closed all banks and imposed capital controls. Uncertainty surrounding the fate of Greece is dragging the equity market lower; the Greek stock exchange remained close and European stocks turned significantly lower.
China’s stock market tumbled again on Monday. Plunging equity prices forced the People’s Bank of China to cut both lending rates and reserve requirements at some banks to help stabilize stock market fluctuations on Sunday. Yet despite the central bank’s desperate action, the Shanghai Composite Index lost 3.3% during the trading session.
U.S. stocks opened the trading session lower. As of 10:30 a.m. E.T., the S&P 500was off 11.94 points or 0.58% to 2089.20. The broad-based Dow Jones Industrial Average and technology-heavy NASDAQ Composite Index also started the trading session lower.
Top Market News Today
Greece Set to Exit the Eurozone
Over the weekend, eurozone finance ministers rejected a Greek request for an extension to the country’s bailout. Meanwhile, the Greek prime minister called on a referendum on whether to accept austerity measures demanded by the International Monetary Fund (IMF) and European Central Bank for needed funds, or to default on their financial obligations and exit the eurozone.
China Slashes Interest Rates to End Crisis
China’s central bank cut interest rates in a desperate bid to calm equity markets. However, the move did little to soothe investors’ fears, with Chinese equity markets falling another three percent overnight.
Fears of a Greek debt default sent the euro tumbling to a three-week low against the U.S. dollar during the Asian trading session. Analysts expect the euro to slide even more as talks between Greece and its creditors make little progress.
Stocks to Watch
Macy’s, Inc. (NYSE/ M)
The struggling department store was downgraded by Deutsche Bank to “sell” from “buy.” Analysts see a low probability of a turnaround as consumers switch to trendier brand stores. Macy’s shares opened the trading session down 2.2% to $68.36, as of 10:30 a.m. E.T.
Twitter, Inc. (NYSE/TWTR)
The firm’s vice president of Corporate Development and Strategy, Rishi Garg, resigned to pursue other interests, adding to uncertainties surrounding the social media company.
Humana Inc. (NYSE/HUM)
The health insurer remains on watch due to merger and acquisitions activity. The department of justice signaled that will implement strict reviews of any proposed deals.