US economy slows to 1.6% in Q1 of '24 – BEA    EMX appoints Al-Jarawi as deputy chairman    Mexico's inflation exceeds expectations in 1st half of April    GAFI empowers entrepreneurs, startups in collaboration with African Development Bank    Egyptian exporters advocate for two-year tax exemption    Egyptian Prime Minister follows up on efforts to increase strategic reserves of essential commodities    Italy hits Amazon with a €10m fine over anti-competitive practices    Environment Ministry, Haretna Foundation sign protocol for sustainable development    After 200 days of war, our resolve stands unyielding, akin to might of mountains: Abu Ubaida    World Bank pauses $150m funding for Tanzanian tourism project    China's '40 coal cutback falls short, threatens climate    Swiss freeze on Russian assets dwindles to $6.36b in '23    Amir Karara reflects on 'Beit Al-Rifai' success, aspires for future collaborations    Ministers of Health, Education launch 'Partnership for Healthy Cities' initiative in schools    Egyptian President and Spanish PM discuss Middle East tensions, bilateral relations in phone call    Amstone Egypt unveils groundbreaking "Hydra B5" Patrol Boat, bolstering domestic defence production    Climate change risks 70% of global workforce – ILO    Health Ministry, EADP establish cooperation protocol for African initiatives    Prime Minister Madbouly reviews cooperation with South Sudan    Ramses II statue head returns to Egypt after repatriation from Switzerland    Egypt retains top spot in CFA's MENA Research Challenge    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    EU pledges €3.5b for oceans, environment    Egypt forms supreme committee to revive historic Ahl Al-Bayt Trail    Debt swaps could unlock $100b for climate action    Acts of goodness: Transforming companies, people, communities    President Al-Sisi embarks on new term with pledge for prosperity, democratic evolution    Amal Al Ghad Magazine congratulates President Sisi on new office term    Egypt starts construction of groundwater drinking water stations in South Sudan    Egyptian, Japanese Judo communities celebrate new coach at Tokyo's Embassy in Cairo    Uppingham Cairo and Rafa Nadal Academy Unite to Elevate Sports Education in Egypt with the Introduction of the "Rafa Nadal Tennis Program"    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Stocks, Euro staggered by Greece; China rescue in Doubt
Published in Amwal Al Ghad on 06 - 07 - 2015

Asian stocks hit a six-month trough and the euro stumbled on Monday after a Greek vote against austerity measures endangered its future in the single currency and raised the risk of a full-blown crisis in the euro zone.
A rush from risk took MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS down 2.8 percent in the steepest daily drop in two years.
Japan's Nikkei .N225 shed 2.4 percent, while U.S. equity futures dropped 1.3 percent ESc1. Early signs were the major European bourses would open down at least 2 percent.
China's stock market tried to buck the trend following a salvo of rapid-fire support measures from Beijing over the weekend.
Yet after an early surge stocks soon flagged and the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen was up just 0.5 percent. The Shanghai Composite Index .SSEC was flat having been up over 7 percent at one stage.
While the price action was whippy across Asia, dealers emphasised that markets were orderly with few signs of financial strain and many assuming the European Central Bank would step in with a pledge of extra liquidity at some point.
The Japanese government said it was ready to respond as needed in markets and was in close touch with other nations.
"A lot depends now on what the ECB does with liquidity support for the Greek banks," said Antonin Jullier, head of equity trading strategy at Citi. "The ECB has the capacity to limit the spread of contagion."
The euro was down 0.8 percent at $1.1027 EUR= but above an early low of $1.0967. It lost more ground to the safe-haven yen, reaching 134.76 yen EURJPY= from Friday's 136.18.
The dollar faded modestly to 122.26 yen JPY= but its index was still up 0.3 percent at 96.394 .DXY.
Demand for highly rated sovereign debt saw the U.S. 10-year Treasury yield fall 11 basis points to 2.28 percent US10YT=RR.
Fed funds futures 0#FF: also rallied as investors wagered the endless uncertainty in Europe would make the Federal Reserve more wary of raising U.S. interest rates, or at least to tighten more gradually once it began.
In commodities, gold got a minor lift to $1,167.93 an ounce but Brent crude lost 75 cents to $59.57 a barrel LCOc1.
The latest reports from Greece said around 61 percent of those voting in the referendum had backed the government and rejected the bailout conditions. [TOP/CEN]
Following the outcome, calls mounted in Berlin to cut Athens loose from the currency union, raising the risk of a full-blown crisis in the euro zone.
German Chancellor Angela Merkel and French President Francois Hollande will meet in Paris on Monday afternoon as
the European Union's grand single currency project faces the biggest challenge since its inception.
Stunned European leaders called a summit for Tuesday to discuss their next move as investors fear "Grexit" could encourage anti-euro sentiment in other countries.
The ECB, which holds a conference call on Monday morning, is likely to maintain emergency funding for Greek banks at its current restricted level, sources said.
Though Greek government officials have vociferously denied any plans to issue a parallel currency, some investors suspect Athens could have no choice in the matter.
Source: Reuters


Clic here to read the story from its source.