Markets rally on reports Tsipras is ready to accept bailout terms, more wilds swings in China and lots of manufacturing data. Here are some of the things that people are talking about in markets this morning.
European markets surge
European markets are rallying after Greek Prime Minister Alexis Tsipras offered to accept most bailout terms, subject to certain conditions. Following the news, Germany's DAX climbed over 2 percent on the day and bonds in Italy and Spain also advanced. At the time of writing, it's unclear whether the latest proposal is enough to convince creditors to close a deal. Euro-area finance ministers will hold a conference call later today to discuss Greece's fresh bid for aid.
Greece in arrears
It's official: Greece missed its $1.7 billion payment to the International Monetary Fund, becoming the first developed country to do so and joining the same club as countries including Sudan and Zimbabwe. As the Greek government makes a renewed push for a deal, the immediate financial consequences of being in arrears with the IMF aren't that obvious. The ECB's Governing Council will consider their response when they meet later today.
More wild swings in China
Yesterday's wild swings on the Shanghai Composite continued today, taking thirty-day volatility on the measure to the highest level since December 2008. At one point in the trading session the equity benchmark was up almost 1 percent but approaching the close stocks sold off aggressively ending the day down more than 5 percent and erasing almost all of Tuesday's monster gains.
Lots of manufacturing data
In Asia, a gauge of Chinese manufacturing came in below estimates but the sentiment among Japanese manufacturers unexpectedly improved. In Europe, U.K. manufacturing data for June came in below estimates, slumping to its lowest level since April 2013 and euro-area manufacturing came out in line with estimates. In the U.S. the Institute for Supply Management’s report is due at 10:00 am E.T.
Deutsche Bank delays
John Cryan, co-CEO of Germany's biggest lender, has delayed the announcement of the bank's strategy update until the end of October. In a letter to employees posted on the company website, Cryan pledged to simplify the diversified lender and cut back on trading activities. Cryan replaces outgoing co-CEO Anshu Jain and is scheduled to become sole CEO in May next year.
What we've been reading
Here's what caught our eye over the past 24 hours.
- There are more stock traders in China than communist party members.
- The average Manhattan apartment approaches the $2 million frontier.
- Blackstone and Blackrock are getting in each other's business.
- Puerto Rico could really use a bankruptcy.
- Why does hot weather make railways bend?
- Has 3d printing already stagnated?
- God and oil at Harvard: CEO sees faith saving capitalism.