Stock Market Update and Greece Problem

Greece has been on news since 2010. However, we have been hearing more and more in last couple of months. Why did the market collapsed today?

Global stock markets plummeted today, as fears over a Greece exit from the Eurozone intensified. The DOW plummeted 350 points, 1.95%, S&P 500 dropped 44 points 2.1% and NASDAQ dropped 122 point 2.4%. UVXY did shot up $11.36, 34.28%. Last week, the investors were looking for a resolution on the problem as Greece finally agreed to meet the Eurozone’s and the International Monetary Fund’s (IMF) demands for pension cuts. However, over the weekend, the bailout talks collapsed as Greece pulled its negotiators from talks last Friday. Greece’s prime minister set a referendum on July 5 for Greek citizens to vote on the Eurozone and IMF demands. As a result, the European Central Bank (ECB) has frozen its funding to Greece’s banks, and it doesn’t look like Greece is going to make its IMF payment deadline tonight. Chinese stock have fallen more than 20% in last couple of weeks despite the interest rate cut by China Republic Bank last Sunday. Today, Chinese authorities stepped up efforts to put an end to the market panic, allowing pension funds to buy stocks as regulators consider halting long list of initial public offerings. India market has also been going south but not as considerable as Chines market. Stay tuned for my July blog in next couple of weeks. 

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