U.S. stocks advanced, with the Standard & Poor's 500 Index earlier rising near a record, as Cigna Corp. and Williams Cos. jumped on merger news amid optimism over Greece debt talks.
European policy makers expressed confidence that a deal with Greece was within reach after Prime Minister Alexis Tsipras's government submitted a last-minute set of proposals. Euro-area leaders are meeting in Brussels, where Tsipras has a chance to put his case to German Chancellor Angela Merkel and French President Francois Hollande.
The S&P 500 Friday posted its best weekly gain since April, after signals from the Federal Reserve that the central bank won't be raising rates quickly as officials hold out for more decisive evidence of an economic rebound.
The equity benchmark fell as much as 2.4 percent from its May record as the threat of tighter monetary policy spooked investors amid data showing the U.S. economy contracted in the first quarter. Three rounds of Fed bond purchases and borrowing costs near zero have propelled the gauge up by more than 200 percent during the six-year bull market.
Data today showed previously owned homes in May sold at the fastest pace since November 2009, adding to evidence the economy will be strong enough to withstand the first rate increase since 2006. Closings on existing properties rose 5.1 percent to a 5.35 million annualized rate, above the 5.26 million median forecast in a Bloomberg survey.
Investors and the Fed will also assess reports this week on durable goods orders, first-quarter economic growth, personal income and spending and consumer sentiment.
"The consumer is two thirds of the economy, so they need housing to do well," said Patrick Spencer, equities vice-chairman at Robert W. Baird & Co. in London. "The housing number will continue to be reasonably buoyant and that will underpin the market."
During the day, the euro reacts to the growth and decline of the progress of negotiations with Greece's creditors. The key event of the day was the meeting of the Eurogroup and the summit of EU leaders. Recall, Greece on Monday night presented a new plan to prevent a default, including new budget proposals that could form the basis for an agreement. If they're not satisfy the creditors, the European leaders will discuss the implications of a default by Greece at the summit on Monday. Meanwhile, the European Commission representative, Pierre Moscovici said today after a meeting of the Eurogroup emergency summit of the EU and can be found to solve the Greek debt. He also called sufficiently serious proposals to the creditors in Athens last weekend.
The pressure on the euro was reported that the European Central Bank increased again today limit the amount of funding Greek banks in the framework of emergency provision of liquidity (ELA). The amount of increase is not yet known. Thus, the ECB has made another infusion of cash into a special fund to help Greek banks already 3 times in 6 days. Last week, the Central Bank raised the upper limit of twice - on Wednesday and Friday, at € 1.1 billion. € 1.8 billion., Bringing the total funds to € 85.9 billion. Sources also claim that the ECB is ready to revise the liquidity of Greek banks in any Currently, if necessary.
Later, the euro continued to rise to new highs, while European bonds and stocks rose on optimism about the agreement with Greece, as evidenced by the comments of the EU and the Greek authorities. European Commission President Jean-Claude Juncker expressed his hope that an agreement with Greece will be reached by the end of the week. A minister of the Greek economy (as reported by BBC) noted that new proposals put forward by Greece, allowed the ice finally get under way. Meanwhile, during a meeting of the Eurogroup Deysselblum I commented that today allow to take a step in the right direction.
The Swiss franc fell moderately against the US dollar, breaking the mark of CHF0.9200. Small influenced today's data on Switzerland. The Swiss National Bank said that the growth in money supply in the country remained stable in the last month. The report stated that M3 - broad money - rose in May by 1.5 percent year on year in May. We recall that in April it was recorded a similar increase. Meanwhile, the Central Bank said that M1 declined in May by 0.1 percent in annual terms, as in the previous month. It was the second consecutive monthly fall. Another report showed that the official reserves rose to $ 600.4 billion іn April, compared to $ 582.9 billion іn March.
Polish equity market enjoyed a strong run on Monday with the WIG Index closing up 2.01%. Raw materials sector (-0.06%) was sole decliner within the WIG Index, while chemicals (+5.5%) outpaced.
The large-cap WIG30 Index performed better than the broad market benchmark, advancing 2.37%. A majority of the Index components returned gains, with the way up led by GRUPA AZOTY (WSE: ATT), jumping 11.89 %. Every banking name also posted solid gains (2.43%-5.5%) except for ALIOR (WSE: ALR), which corrected down 1.55%. Other weak stocks included BOGDANKA (WSE: LWB), GTC (WSE: GTC) and TVN (WSE: TVN), generating losses of 2.02%, 0.79% and 0.37% respectively.
Major U.S. stock-indexes rose on Monday, after euro zone finance ministers welcomed new Greek proposals for a cash-for-reform deal that could avert a debt default. Nasdaq rose to 5,159.36, surpassing the previous high of 5,143.32 it set last week. The Eurogroup, however, remained cautious and said the proposals required detailed study and it would take several days to determine whether they can lead to an agreement.
Almost all of Dow stocks in positive area (29 of 30). Top looser - Cisco Systems, Inc. (CSCO, -0.03%). Top gainer - Merck & Co. Inc. (MRK, +1.71%).
All S&P index sectors in positive area. Top gainer - Healthcare (+1,4%).
At the moment:
Dow 18079.00 +168.00 +0.94%
S&P 500 2119.00 +21.25 +1.01%
Nasdaq 100 4547.75 +48.00 +1.07%
10-year yield 2.35% +0.08
Oil 59.67 -0.30 -0.50%
Gold 1185.40 -16.50 -1.37%
Stock indices closed higher on hopes for a deal between Athens and its creditors. The head of the Eurogroup Jeroen Dijsselbloem said after the Eurogroup's meeting on Monday that a deal between Greece and its creditors could be reached this week.
"It's an opportunity to get a deal this week and that's what we'll work for," he said.
Dijsselbloem noted that the new Greek proposal was "broad and comprehensive".
"Work still needs to be done," the EU's Economic and Financial Affairs Commissioner Pierre Moscovici said.
The Eurozone leaders' meeting is scheduled to be at 17:00 GMT.
Earlier on Monday, European Commission President Jean-Claude Juncker said that progress has been made in the debt talks between Greece and its creditors over the weekend, but he is sceptical if a deal will be reached today.
News reported that Greek Prime Minister Alexis Tsipras said that the Greek government provided a proposal for a "mutually beneficial deal".
Meanwhile, the economic data from the Eurozone was better than expected. Eurozone's preliminary consumer confidence index remained unchanged at -5.6 in June, beating expectations for a decline to -5.8. May's figure was revised down from -5.5.
The reading remains above the levels in the recent years since the financial crisis, but it seems that the boost from lower energy prices is fading.
Indexes on the close:
Name Price Change Change %
FTSE 100 6,825.67 +115.22 +1.72 %
DAX 11,460.5 +420.40 +3.81 %
CAC 40 4,998.61 +183.24 +3.81 %
Oil prices traded lower despite hopes for a deal between Athens and its creditors. The head of the Eurogroup Jeroen Dijsselbloem said after the Eurogroup's meeting on Monday that a deal between Greece and its creditors could be reached this week.
"It's an opportunity to get a deal this week and that's what we'll work for," he said.
Dijsselbloem noted that the new Greek proposal was "broad and comprehensive".
"Work still needs to be done," the EU's Economic and Financial Affairs Commissioner Pierre Moscovici said.
The Eurozone leaders' meeting is scheduled to be at 17:00 GMT.
Concerns over global oil glut weighed on oil prices. Oil production in the U.S. continues to rise despite the decline in oil rigs. The oil driller Baker Hughes reported that the number of active U.S. rigs declined by 4 rigs to 631 last week, the lowest weekly level since August 06, 2010. It was the 28th consecutive weekly fall.
Combined oil and gas rigs fell by 2 to 857. It was the lowest level since January 17, 2003.
WTI crude oil for July delivery decreased to $58.93 a barrel on the New York Mercantile Exchange.
Brent crude oil for July fell to $62.60 a barrel on ICE Futures Europe.
Gold price traded lower on hopes for a deal between Athens and its creditors. The head of the Eurogroup Jeroen Dijsselbloem said after the Eurogroup's meeting on Monday that a deal between Greece and its creditors could be reached this week.
"It's an opportunity to get a deal this week and that's what we'll work for," he said.
Dijsselbloem noted that the new Greek proposal was "broad and comprehensive".
"Work still needs to be done," the EU's Economic and Financial Affairs Commissioner Pierre Moscovici said.
The Eurozone leaders' meeting is scheduled to be at 17:00 GMT.
Earlier on Monday, European Commission President Jean-Claude Juncker said that progress has been made in the debt talks between Greece and its creditors over the weekend, but he is sceptical if a deal will be reached today.
News reported that Greek Prime Minister Alexis Tsipras said that the Greek government provided a proposal for a "mutually beneficial deal".
June futures for gold on the COMEX today fell to 1181.60 dollars per ounce.
The Bank of Japan (BoJ) released its monthly report on Monday. The central bank said that Japan's economy continued to recover moderately. Exports picked up, the employment and income situation improved, while housing investment seems to pick up, but private consumption remained resilient, the BoJ noted.
Industrial production picked up as demand home and abroad increased.
Japan's central bank pointed out that financial conditions were accommodative.
The European Commission released its preliminary consumer confidence figures for the Eurozone on Monday. Eurozone's preliminary consumer confidence index remained unchanged at -5.6 in June, beating expectations for a decline to -5.8.
May's figure was revised down from -5.5.
The reading remains above the levels in the recent years since the financial crisis, but it seems that the boost from lower energy prices is fading.
The National Association of Realtors released existing homes sales figures in the U.S. on Monday. Sales of existing homes rose 5.1% to a seasonally adjusted annual rate of 5.35 million in May from 5.09 million in April. It was the highest level since November 2009.
April's figure was revised up from 5.04 million units.
Analysts had expected an increase to 5.26 million units.
The increase was driven by the return of first-time buyers onto the market.
The NAR chief economist Lawrence Yun said that "the return of first-time buyers in May is an encouraging sign and is the result of multiple factors, including strong job gains among young adults, less expensive mortgage insurance and lenders offering low downpayment programs".
He added that more first-time buyers are expected to enter the housing market in coming months.
"Overall supply still remains tight, homes are selling fast and price growth in many markets continues to teeter at or near double-digit appreciation," Yun also said.
The European Central Bank (ECB) Monday raised the amount the Greek central bank can lend its banks (the emergency liquidity assistance (ELA). An amount was not disclosed by the central bank. It was the third increase in less than a week.
The ECB had raised the ELA by €3.3 billion to €87.4 billion on Friday.
It is likely to be the reaction to the massive withdrawals from the Greek banks.
The head of the Eurogroup Jeroen Dijsselbloem said after the Eurogroup's meeting on Monday that a deal between Greece and its creditors could be reached this week.
"It's an opportunity to get a deal this week and that's what we'll work for," he said.
Dijsselbloem noted that the new Greek proposal was "broad and comprehensive".
"Work still needs to be done," the EU's Economic and Financial Affairs Commissioner Pierre Moscovici said.
EUR/USD: $1.1200(E991mn), $1.1260(E250mn), $1.1300(E722mn), $1.1350(E544mn), $1.1400(E317mn)
USD/JPY: Y122.00($1.56bn), Y123.50($892mn), Y124.00($481mn), Y125.00(Y4.5bn)
EUR/CHF: Chf1.0650(E432mn)
NZD/USD: $0.7000(NZ$314mn)
Federal Reserve Bank of Cleveland President Loretta Mester said on Friday that hiking interest rate by 25 basis points wouldn't be a problem for the U.S. economy.
"I think the economy can support a 25-basis-point increase in interest rates. However, I also understand the argument that getting a little more confirming data before taking action is reasonable as well," she said.
Mester pointed out that she expects the Fed to start raising its interest rate this year. She does not know "how many rate increases will happen in 2015", she added.
The Federal Reserve Bank of Cleveland president also said that interest rate hike is possible in every monetary policy meeting.
Mester is not a voting member of the Federal Open Market Committee this year.
U.S. stock-index futures advanced, indicating equities will rebound, after Greece submitted a new debt proposal before talks on Monday.
Global markets:
Nikkei 20,428.19 +253.95 +1.26%
Hang Seng 27,080.85 +320.32 +1.20%
FTSE 6,783.24 +72.79 +1.08%
CAC 4,933.01 +117.64 +2.44%
DAX 11,327.99 +287.89 +2.61%
Crude oil $59.71 (+0.17%)
Gold $1192.50 (-1.24%)
The Bank of Greece released its current account data on Monday. Greece's current account deficit fell by €196 million from last year to €955 million in April.
The Greek deficit on trade in goods and services declined to €691.5 million in April from €866.5 million in April last year.
The deficit on primary income widened to €145.9 million in April from EUR 135.1 million in April last year, while the deficit on secondary income narrowed to €118 million from €149.8 million.
The capital account deficit widened to €18.8 million from €14.2 million last year.
(company / ticker / price / change, % / volume)
McDonald's Corp | MCD | 96.18 | +0.10% | 0.3K |
UnitedHealth Group Inc | UNH | 120.50 | +0.14% | 1.4K |
Ford Motor Co. | F | 15.15 | +0.26% | 7.9K |
Verizon Communications Inc | VZ | 47.60 | +0.29% | 2.7K |
Exxon Mobil Corp | XOM | 85.51 | +0.35% | 3.9K |
Nike | NKE | 106.91 | +0.36% | 0.3K |
American Express Co | AXP | 80.50 | +0.39% | 6.2K |
Johnson & Johnson | JNJ | 100.25 | +0.39% | 0.3K |
General Electric Co | GE | 27.35 | +0.40% | 10.2K |
The Coca-Cola Co | KO | 40.57 | +0.42% | 7.8K |
Cisco Systems Inc | CSCO | 29.16 | +0.45% | 5.7K |
AT&T Inc | T | 35.15 | +0.46% | 22.8K |
International Business Machines Co... | IBM | 167.75 | +0.46% | 5.8K |
Microsoft Corp | MSFT | 46.31 | +0.46% | 18.8K |
Procter & Gamble Co | PG | 80.91 | +0.46% | 0.8K |
Visa | V | 69.01 | +0.47% | 3.4K |
United Technologies Corp | UTX | 115.50 | +0.53% | 2.3K |
Intel Corp | INTC | 32.25 | +0.56% | 9.1K |
Goldman Sachs | GS | 214.41 | +0.57% | 0.6K |
Walt Disney Co | DIS | 113.28 | +0.59% | 2.2K |
Boeing Co | BA | 146.00 | +0.60% | 0.7K |
Apple Inc. | AAPL | 127.36 | +0.60% | 322.8K |
Starbucks Corporation, NASDAQ | SBUX | 54.26 | +0.61% | 5.9K |
Chevron Corp | CVX | 100.09 | +0.62% | 4.5K |
Google Inc. | GOOG | 540.00 | +0.62% | 2.5K |
E. I. du Pont de Nemours and Co | DD | 70.30 | +0.66% | 0.2K |
Hewlett-Packard Co. | HPQ | 32.01 | +0.66% | 0.8K |
Citigroup Inc., NYSE | C | 56.61 | +0.68% | 58.1K |
Yahoo! Inc., NASDAQ | YHOO | 40.80 | +0.72% | 18.6K |
Amazon.com Inc., NASDAQ | AMZN | 438.19 | +0.75% | 6.9K |
General Motors Company, NYSE | GM | 36.38 | +0.75% | 0.1K |
Pfizer Inc | PFE | 34.44 | +0.76% | 34.7K |
JPMorgan Chase and Co | JPM | 68.64 | +0.82% | 3.5K |
FedEx Corporation, NYSE | FDX | 177.50 | +0.88% | 0.3K |
Caterpillar Inc | CAT | 88.30 | +0.89% | 2.0K |
Twitter, Inc., NYSE | TWTR | 36.27 | +1.15% | 139.7K |
Merck & Co Inc | MRK | 58.75 | +1.22% | 3.6K |
Facebook, Inc. | FB | 83.76 | +1.52% | 255.1K |
Yandex N.V., NASDAQ | YNDX | 17.03 | +1.55% | 5.1K |
ALCOA INC. | AA | 11.92 | -0.06% | 24.5K |
Tesla Motors, Inc., NASDAQ | TSLA | 262.25 | -0.10% | 40.1K |
Barrick Gold Corporation, NYSE | ABX | 11.43 | -0.44% | 3.9K |
International Paper Company | IP | 50.50 | -1.25% | 5.4K |
The head of the Eurogroup Jeroen Dijsselbloem said on Monday that it is unlikely that a deal between Greece and its creditors will be reached on Monday as a Greek proposal arrived late on Sunday night.
"It will be impossible to have a final assessment; and we'll see what's the basis to go for final talks," he said.
Upgrades:
Downgrades:
Alcoa (AA) downgraded from Buy to Neutral at Sterne Agee CRT
Other:
Facebook (FB) reiterated at Overweight at Piper Jaffray, target raised to $120 from $92
FedEx (FDX) reiterated at Buy at Argus, target raised to $205 from $195
German Finance Minister Wolfgang Schaeuble said on Monday that he has not seen a new Greek proposal.
"We do not have substantial proposals," he said.
Earlier, news reported that Greek Prime Minister Alexis Tsipras said that the Greek government provided a proposal for a "mutually beneficial deal".
Economic calendar (GMT0):
(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)
05:00 Japan BoJ monthly economic report
07:45 United Kingdom BOE Deputy Governor for Financial Stability Jon Cunliffe speaks
10:30 Eurozone Eurogroup Meetings
The U.S. dollar traded higher against the most major currencies ahead of the U.S. existing home sales data. The existing home sales in the U.S. are expected to increase to 5.26 million units in May from 5.04 million units in April.
The euro traded lower against the U.S. dollar on the uncertainty of the Greek debt talks. News reported that Greek Prime Minister Alexis Tsipras said that the Greek government provided a proposal for a "mutually beneficial deal".
European Council President Donald Tusk called the Eurozone leaders' meeting for Monday at 17:00 GMT in Brussels last week. "It is time to urgently discuss the situation of Greece at the highest political level," he said.
European Union (EU) Economic Commissioner Pierre Moscovici said on Monday that he was "convinced" a deal will be reached.
The Eurogroup's meeting was scheduled to be at 10:30 GMT, while the Eurozone leaders' meeting is scheduled to be at 17:00 GMT.
European Commission President Jean-Claude Juncker said on Monday that progress has been made in the debt talks between Greece and its creditors over the weekend, but he is sceptical if a deal will be reached today.
"I don't know if we will have an agreement today," he noted.
Eurozone's consumer confidence index is expected to decline to -5.8 in June from -5.5 in May.
The British pound traded lower against the U.S. dollar in the absence of any major economic reports from the U.K.
EUR/USD: the currency pair decreased to $1.1311
GBP/USD: the currency pair fell to $1.5804
USD/JPY: the currency pair rose to Y123.15
The most important news that are expected (GMT0):
14:00 Eurozone Consumer Confidence (Preliminary) June -5.5 -5.8
14:00 U.S. Existing Home Sales May 5.04 5.26
17:00 Eurozone Euro Summit
EUR/USD
Offers 1.1380 1.1400 1.1430 1.1450 1.1475 1.1500 1.1530 1.1550
Ордера на покупку 1.1340 1.1325 1.1300 1.1285 1.1240 1.1220 1.1200 1.1185 1.1150 1.1130 1.1100
GBP/USD
Offers 1.5900-10 1.5925 1.5940 1.5960 1.5985 1.6000
Ордера на покупку 1.5850 1.5820-25 1.5800 1.5780 1.5750 1.5730 1.5700
EUR/GBP
Offers 0.7165-70 0.7185 0.7200 0.7220 0.7245-50
Ордера на покупку 0.7130 0.7100 0.7080 0.7065 0.7050
EUR/JPY
Offers 139.80 140.00 140.20 140.50 140.80 141.00
Ордера на покупку 139.20 139.00 138.80 138.50 138.30 138.00
USD/JPY
Offers 123.20 123.50 123.80 124.00 124.25 124.40
Ордера на покупку 122.75 122.50 122.30 122.00 121.85 121.65 121.50
AUD/USD
Offers 0.7800-05 0.7830 0.7850
Bids 0.7700 0.7680 0.7650 0.7625-30 0.7600
Stock indices traded higher on hopes for a deal between Athens and its creditors. News reported that Greek Prime Minister Alexis Tsipras said that the Greek government provided a proposal for a "mutually beneficial deal".
European Council President Donald Tusk called the Eurozone leaders' meeting for Monday at 17:00 GMT in Brussels last week. "It is time to urgently discuss the situation of Greece at the highest political level," he said.
European Union (EU) Economic Commissioner Pierre Moscovici said on Monday that he was "convinced" a deal will be reached.
The Eurogroup's meeting is scheduled to be at 10:30 GMT, while the Eurozone leaders' meeting is scheduled to be at 17:00 GMT.
European Commission President Jean-Claude Juncker said on Monday that progress has been made in the debt talks between Greece and its creditors over the weekend, but he is sceptical if a deal will be reached today.
"I don't know if we will have an agreement today," he noted.
Current figures:
Name Price Change Change %
FTSE 100 6,797.34 +86.89 +1.29 %
DAX 11,390.21 +350.11 +3.17 %
CAC 40 4,968.01 +152.64 +3.17 %
The Swiss National Bank (SNB) released its money supply data on Monday. M3 money supply in Switzerland increased 1.5% year-on-year in May, after a 1.5% rise in April.
M1 money supply declined 0.1% year-on-year in May, after a 0.1% decrease. It was the second consecutive decline.
European Commission President Jean-Claude Juncker said on Monday that progress has been made in the debt talks between Greece and its creditors over the weekend, but he is sceptical if a deal will be reached today.
"I don't know if we will have an agreement today," he noted.
EUR/USD: $1.1200(E991mn), $1.1260(E250mn), $1.1300(E722mn), $1.1350(E544mn), $1.1400(E317mn)
USD/JPY: Y122.00($1.56bn), Y123.50($892mn), Y124.00($481mn), Y125.00(Y4.5bn)
EUR/CHF: Chf1.0650(E432mn)
NZD/USD: $0.7000(NZ$314mn)
European Union (EU) Economic Commissioner Pierre Moscovici said on Monday that he was "convinced" a deal will be reached.
The Eurogroup's meeting is scheduled to be at 10:30 GMT, while the Eurozone leaders' meeting is scheduled to be at 17:00 GMT.
Federal Reserve Bank of San Francisco President John Williams said in San Francisco on Friday that the Fed could hike its interest rate this year as full employment will be reached by the end of this year.
"I still believe this will be the year for lift-off. I see a safer course in starting sooner and proceeding more gradually," he said.
"Now that wage growth is starting to take off across multiple measures, it further confirms that the labour market is nearly healed," Williams added.
Federal Reserve Bank of San Francisco president expects inflation in the U.S. to reach the Fed's 2% target by the end of the next year as oil price rises and the U.S. dollar declines.
Williams is a voting member of the Federal Open Market Committee this year.
The Bank of England (BoE) Monetary Policy Committee (MPC) Member Ian McCafferty said last week that the BoE could start raising its interest rate before the end of this year. It will depend on the incoming economic data.
Japanese Finance Minister Taro Aso said on Monday that he closely monitors the debt talks between Greece and its creditors as failure could have a significant impact on Japan's and global economy.
"Japanese media has been reporting that even if Greek finances went bust that would not impact Japan, but I cannot tell," he said.
The oil driller Baker Hughes reported that the number of active U.S. rigs declined by 4 rigs to 631 last week, the lowest weekly level since August 06, 2010. It was the 28th consecutive weekly fall.
Combined oil and gas rigs fell by 2 to 857. It was the lowest level since January 17, 2003.
Oil production in the U.S. continues to rise despite the decline in oil rigs.
The U.S. Energy Information Administration forecasts that U.S. crude-oil production would begin to fall from June until February 2016.
West Texas Intermediate futures for July delivery, which expires today, little changed at $59.99 (+0.03%) and. Brent crude for August slightly advanced by 0.13% to $63.10 a barrel amid hopes for a deal between Greece and its lenders as the country's Prime Minister Alexis Tsipras said he prepared a new package of reforms, which will be discussed today at the emergency meeting of the euro zone leaders.
However, soon Iran, OPEC's fifth-largest producer, may add to the global supply glut issue as a June 30 deadline on nuclear deal approaches. In case sanctions are lifted the country may double its exports. Iran is currently allowed to export about 1 million barrels a day.
This morning gold dipped below the $1,200 psychological level. The metal is currently at $1,197.60 (-0.36%) an ounce.
Last week non-interest-paying gold was boosted by a weaker dollar caused by Fed's softer rates outlook. It was also supported by safe-haven demand amid concerns over Greece. However Greece's Prime Minister Alexis Tsipras is likely to bring a new package of reforms today. Market participants are hoping that a solution will come at the last moment.
U.S. stocks have given up some of their gains and ended lower ahead of Monday meeting of the euro zone leaders. This meeting should produce a decision on Greece's debt crisis and remove uncertainty, which weighs on markets.
The Dow Jones industrial average dropped 99.89 points, or 0.55%, to 18,015.95. The Standard & Poor's 500 fell by 11.25 points, or 0.53%, to 2,109.99. The Nasdaq Composite retreated by 15.95 points, or 0.31%, to close at 5,117.
Asian stocks have started this week with cautious optimism. Hong Kong Hang Seng rose by 0.40%, or 107.37 points, to 26,867.90. Meanwhile the Nikkei rose by 0.99%, or 199.03 points, to 20,373.27. China mainland markets are on holiday today.
Hopes for a Greek deal were the key positive contributor ahead of today's meeting as a deadline for a 1.6 billion euro ($1.81 billion) payment to the International Monetary Fund expires on June the 30th.
Economic calendar (GMT0):
Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual
05:00 Japan BoJ monthly economic report
The euro has slightly gained against the dollar amid encouraging news from Greece. Sources reported that Athens prepared a new package of reforms, which will be discussed when euro zone leaders hold an emergency meeting today. Currently debt talks are in a dead lock, although Greece has less than two weeks to pay a large sum to the International Monetary Fund.
Economists expect that surveys of consumers and companies, which are to be published next week, will reflect concerns about a probable default in Greece. Analysts surveyed by Wall Street Journal expect to see that consumer confidence declined in the euro zone in June.
The U.S. dollar declined against the yen and the sterling as the latest Fed meeting suggested that the central bank is being careful about raising rates. Such conditions keep the dollar under pressure.
EUR/USD: the pair has traded above $1.1380 this morning
USD/JPY: the pair retreated to Y122.55
GBP/USD: the pair advanced to $1.5900
The most important news that are expected (GMT0):
(time / country / index / period / previous value / forecast)
07:45 United Kingdom BOE Deputy Governor for Financial Stability Jon Cunliffe speaks
10:30 Eurozone Eurogroup Meetings
14:00 Eurozone Consumer Confidence (Preliminary) June -5.5 -5.8
14:00 U.S. Existing Home Sales May 5.04 5.26
17:00 Eurozone Euro Summit
EUR / USD
Resistance levels (open interest**, contracts)
$1.1479 (1962)
$1.1442 (2086)
$1.1406 (1773)
Price at time of writing this review: $1.1393
Support levels (open interest**, contracts):
$1.1286 (598)
$1.1237 (758)
$1.1174 (1783)
Comments:
- Overall open interest on the CALL options with the expiration date July, 2 is 55646 contracts, with the maximum number of contracts with strike price $1,1500 (4888);
- Overall open interest on the PUT options with the expiration date July, 2 is 86143 contracts, with the maximum number of contracts with strike price $1,1000 (12587);
- The ratio of PUT/CALL was 1.55 versus 1.59 from the previous trading day according to data from June, 19
GBP/USD
Resistance levels (open interest**, contracts)
$1.6201 (350)
$1.6102 (399)
$1.6004 (618)
Price at time of writing this review: $1.5893
Support levels (open interest**, contracts):
$1.5793 (270)
$1.5696 (616)
$1.5598 (831)
Comments:
- Overall open interest on the CALL options with the expiration date July, 2 is 22851 contracts, with the maximum number of contracts with strike price $1,5500 (2549);
- Overall open interest on the PUT options with the expiration date July, 2 is 25753 contracts, with the maximum number of contracts with strike price $1,5100 (2113);
- The ratio of PUT/CALL was 1.13 versus 1.13 from the previous trading day according to data from June, 19
* - The Chicago Mercantile Exchange bulletin (CME) is used for the calculation.
** - Open interest takes into account the total number of option contracts that are open at the moment.
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