Wall Street opened sharply lower on Monday July 6, 2015, as Greek people rejected the bailout package by creditors on Sunday, putting the euro on edge. European stock markets plunged as Greece’s exit from the eurozone seems to be likely.
After Greece overwhelmingly voted against conditions for a rescue package on Sunday’s referendum, many analysts and experts expected a closer result, or a “Yes.” It remains uncertain whether Greece will stay in the eurozone or is set to exit the troubled region.
Greece’s Prime Minister Alexis Tsipras and Russian President Vladimir Putin spoke by phone on Monday, according to the Kremlin. There is no mention of possible Russian financial support.
Greek Finance Minister Yanis Varoufakis has resigned from his post while the European authorities are expecting a new proposal after the historic referendum.
Oil fell more than three percent after the results of the referendum in Greece. A strong U.S. dollar is set to pressure commodities as it makes energy prices more expensive for holders of other currencies.
The Chinese government is readying a massive injection of funds to slow down the biggest share selloff in years. China’s central bank aims to indirectly help investors borrow to buy shares in a market to cover the so-called margin financing.
The S&P 500 dove into red territory; trading down 12.25 points or 0.59% to 2,064.79 at the beginning of the trading session. As of 9:45 a.m. E.T., all the U.S. indices were trading sharply lower.
Top Market News Today
Greece, Greece, Greece
The global financial market has been suffering froth uncertainties on the Greek debt talk crisis. The outcome of the referendum on Sunday added up to the fate of the country as well as the eurozone. All told, talks have been resumed to find a solution over the country’s default on its financial obligations.
Oil Prices Down
As the Greek crisis remains, it’s putting pressure on energy prices. An Iran nuclear deal with P5+1 seems to be closer than ever as both sides said over the weekend. However, due to the difficulties of talk, the results could go either way. If a deal is announced, the oil prices may go even lower as Iran plans to inject more oil into the already oversupplied oil market.
Stocks to Watch
Humana Inc. (NYSE/HUM)
AetnaInc. (NYSE/AET) announced a bid to buy rival Humana Inc. (NYSE/HUM) in a $37.0 billion cash and stock deal. The acquisition is part of a wave of consolidation gripping the health insurance industry.
Alibaba Group Holding Limited (NYSE/BABA)
The giant China-based e-commerce retailer’s financial services arm Ant Financial has completed a private placement of shares.
Apple Inc. (NASDAQ/AAPL)
DigiTimes reported Apple’s next iPhone has entered into the production process, indicating suppliers have begun to deliver parts to the manufactures.