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Published on 06-30-2015 05:06 PM
Volatility continues to shake global markets this morning as another day brings another round of Greece rumors. In Asia, Chinese stocks closed 5.5% higher, having been as much as 5.1% lower during the session. Yesterday the S&P500 fell more than 2%, coming within points of its 200-day moving average, both the S&P500 and the DJIA erased their gains on the year, while the VIX volatility index rose 34% to 19, the biggest gain since April 2013. Today the VIX remains just shy of 19 while US stocks are still in the green. As of writing, the DJIA is up 0.16%, the S&P500 is up 0.48% and the Nasdaq is up 0.43%.
After multiple Eurozone officials said that the door was still open for a deal, the Greeks have taken them at their word and reportedly asked for a new two-year, €29 billion bailout via the ESM with a parallel debt restructuring. German officials were calling on Athens to cancel Sunday's Greek referendum in order to provide space to examine the new proposal, while Chancellor Merkel indicated there will be no "new developments" on Greece today. Note that the Greeks have already confirmed that they will not be making the IMF payment due today, although for its part an IMF spokesperson clarified that in official document "arrears" will be used to characterize Greece's non-payment rather than "default."
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