Huge swings in Chinese stocks, more news from Greece, and Q2 wraps up. Here are some of the things that people are talking about in markets this morning.
IMF payment due today
Greece is scheduled to pay the International Monetary Fund $1.7 billion by the end of today but it's widely expected the payment won't be made by then. The credit-rating companies say failure to pay the IMF wouldn't constitute a default and it's unclear how the ECB would react. But from a reputational standpoint the damage is significant: A missed IMF payment would put Greece in the same company as countries like Sudan, Somalia and Zimbabwe.
ECB official can't rule out Grexit
Greek Prime Minister Alexis Tsipras told national broadcaster ERT that European lenders wouldn't dare kick his country out of the euro area. According to Tsipras the cost would be "enormous." But ECB official Benoit Coeure took a different view, telling French newspaper Les Echos that an exit can no longer be ruled out.
Shanghai volatility surges
The Shanghai Composite is behaving more like an $8 trillion penny stock and not the equity benchmark of the world's second largest economy. The Chinese stock market ended the day in the green for the first time in four days, posting its largest day of gains since March 2009. The Shanghai Composite closed up 5.5 percent but only after dropping over 5 percent earlier in the session, that's the biggest intraday swing since 1992.
Wrapping up Q2
In Europe, Q2 has been almost the polar opposite of Q1: In the first three months of the year European stocks posted their best quarter since 2009 and the euro posted its worst quarter on record. At the time of writing European stocks are poised for their worst quarter since 2012 and the single currency is heading for its best quarterly gain against the dollar since 2011. Ahead of the final day of trading in Q2, U.S. stocks have erased the gains for 2015 and Treasuries are heading for their first quarterly loss since 2013.
In the U.K., a final reading of first-quarter GDP showed the economy grew more than previously estimated. In Europe, the first reading of euro-area inflation for the month of June showed consumer prices rising for a second month. And coming up in the U.S., the S&P/Case-Shiller index is due at 9:00 am in Washington and an index of consumer confidence will be released at 10:00 am E.T.
What we've been reading
Here's what caught our eye over the last 24 hours.
- Beware of a humiliated Greek.
- Clean energy beats the market.
- Here's why China wants a strong euro.
- Engineers in Gaza are creating a tech hub.
- Self-driving cars may be too careful.
- Europe's dream is dying in Greece.
- You'll get some free time today - use it wisely.