Yields contracted and equities sank during the US session as market participants recalibrated positions in the face of the big reversal in Greece negotiations. As of writing, the DJIA is off 0.73%, the S&P500 is down 0.50% and the Nasdaq is down 0.55%.
Greece is teetering on the edge this morning as more reports come out that the EU is beginning to seriously prepare for a possible default event. Overnight, there were press reports that Germany was looking at possible capital controls, while this morning there were headlines suggesting that Eurozone officials are discussing a "plan B," which would involve extending the current bailout with conditions, including aid funding disbursements in tranches. EUR/USD dipped as low as 1.1155, but has soared back up to 1.1300 during the US session. Bunds and UST yields are lower by a few basis points, at 0.836% and 2.352%, respectively.
In a filing heard around the world, Twitter announced a CEO transition plan last night, with the current CEO Costolo stepping down and founder Jack Dorsey returning as interim CEO, and the board conducting a search to find the new CEO. Many commentators are questioning this arrangement, with many assuming that Dorsey may be named permanent CEO after a sufficient grace period. Shares of TWTR spiked more than 10% on the news in the post market but are only up 1.3% or so as of writing.
The airlines are among the few gainers in the session, after JP Morgan released an analyst note asserting that Delta has raised its domestic fare structure slightly. Note also that WTI crude is seeing its third consecutive session of declines, dropping back below $60 after the run-up from $58 earlier in the week.
***Looking Ahead***
- 13:00 (US) Baker Hughes Rig Count
***Economic Data***
- (PL) Poland May M3 Money Supply M/M: +0.9% v -0.9% prior; Y/Y: 7.7% v 7.2% prior
- (IS) Iceland May Unemployment Rate: 2.9% v 3.4% prior
- (IN) India Apr Industrial Production Y/Y: 4.1% v 2.1% prior
- (IN) India May CPI Y/Y: 5.0% v 4.9% prior
- (CA) Canada May Teranet/National Bank HPI M/M: 0.9% v 0.1%e v 0.2% prior; Y/Y: 4.6% v 4.4% prior; House Price index: 196.97 v 168.42 prior
- (US) May PPI Final Demand M/M: 0.5% v 0.4%e; Y/Y: -1.1% v 1.1%e
- (US) May PPI Ex Food and Energy M/M: 0.1% v 0.1%e; Y/Y: 0.6% v 0.7%e
- (US) May PPI Ex Food, Energy, Trade M/M: -0.1% v 0.1%e; Y/Y: 0.6% v 0.9%e
- (US) Jun Preliminary University of Michigan Confidence: 94.6 v 91.2e
[I]Contributed by Trade The News[/I]
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