OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 -0.43%) are down -0.32% and European stocks are down -1.44% as the Greek credit crisis remains unresolved. Greece’s ASE Stock Index plunged -4.47% and the Greek 10-year bond yield jumped to a 1-1/2 month high of 12.46% after the European Commission said that negotiations on Sunday broke down after just 45 minutes because of huge differences between Greece and its creditors. The commission said that Greece’s plan still had gaps and were 2 billion euros short of meeting their fiscal targets. The markets will now look to Thursday’s meeting of Eurozone finance ministers as a make-or-break session deciding on Greece’s ability to avert default and remain in the Eurozone. Asian stocks closed mostly lower: Japan -0.09%, Hong Kong -1.53%, China -2.00%, Taiwan -0.46%, Australia -0.12%, Singapore -0.92%, South Korea -0.37%, India +0.61%. Chinese shares dropped -2.00% as brokerage stocks led the market lower after China’s securities regulator said it plans to cap how much money they can lend to margin traders.
Commodity prices are mostly lower. Jul crude oil (CLN15 -1.27%) is down -1.13%, Jul gasoline (RBN15 -1.04%) is down -0.84%. Metals prices are mostly lower. Aug gold (GCQ15 +0.16%) is down -0.36%. Jul copper (HGN15 -1.70%) is down -1.66% at a 2-3/4 month low on fund selling after China failed to add stimulus over the weekend. Agricultural prices are lower as favorable growing conditions are boosting the chances of bumper U.S. crops.
The dollar index (DXY00 +0.33%) is up +0.34%. EUR/USD (^EURUSD) is down -0.47%. USD/JPY (^USDJPY) is up +0.19%.
Sep T-note prices (ZNU15 +0.16%) are up +5.5 ticks at a 1-week high.
The European Commission said that talks in Brussels Sunday between Greece and its creditors broke down after just 45 minutes as both sides remain far apart from an agreement. The latest attempt to resolve the crisis failed to unlock as much as 7.2 billion euros of new bailout funds for Greece as the current Eurozone bailout expires in just over 2 weeks. The commission said that the gap between the parties on fiscal measures needed is “in the order” of 2 billion euros annually. Greek Prime Minister Tsipras has refused to meet creditor demands to bridge that gap with pension cuts and a value-added tax. After the failed meeting Sunday, Bundesbank President Weidmann said “the likelihood that no agreement will be reached is rising” and that “time is running out.”
