The Greece situation is pressuring global markets again this morning, pushing yields higher and equities lower. As of writing, the DJIA is -0.17%, S&P500 is off 0.06% and the Nasdaq is up slightly.
Yields on Greek government 10-year bonds shot up 23 basis points ahead of its next big IMF payment, due on Tuesday. The Greek Finance Ministry released a statement around 10:30ET that it had ordered the payment to go through, however yields remain very elevated, with the 10-year UST up 6.5 basis points to 2.213% and the 10-year bund up 4.8 basis points to 0.593%. Nobody really expects a deal at the Eurogroup today and more people are worrying about a possible Greek default. EUR/USD has been bouncing between 1.1140 to 1.1195 all morning.
Secretary of State John Kerry will meet with Russian President Putin on Tuesday in Sochi, the first direct talks of this kind since the crises in Ukraine and Iraq blew up a year and a half ago. Among other things, there were reports that Kerry would raise the possibility of US military assistance for Ukraine at the meeting. The two side will discuss a full range of bilateral and regional issues, including Iran and Syria.
Shares of Zulily rose more than 18% in pre-market trading on Monday after news over the weekend that Alibaba raised its stake in the company to 9.3%. Zulily is an online retailer that targets mothers, with daily deals on clothes, toys, and other things for their children. Note that shares of Zulily had fallen more than 16% after the firm missed on revenue in quarterly results last Wednesday.
Noble Energy reached a deal to acquire Rosetta Resources for about $2 billion in stock as industry consolidation driven by steep declines in oil prices picks up momentum. The per-share price of $26.62 was a 38% premium to Rosetta's Friday close, however the company's shares had lost nearly two-thirds of their value since June.
***Looking Ahead***
- 16:00 (US) Crop Progress Report
- 18:00 (NZ) New Zealand Apr ANZ Heavy Truckometer M/M: No est v -0.4% prior
- 19:01 (UK) Apr BRC Sales Like-For-Like Y/Y: 0.6%e v 3.2% prior
- 21:00 (PH) Philippines Mar Exports: No est v $4.5B prior; Y/Y: -3.9%e v -3.1% prior
***Economic Data***
- (PT) Portugal Mar Trade Balance: -€0.9B v -€0.5B prior
- (UK) BoE leaves both interest rate and asset purchase target (APT) unchanged at 0.50% and £375B, respectively
- (BR) Brazil May IGP-M Inflation 1st Preview: 0.5% v 0.5%e
[I]Contributed by Trade The News[/I]
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