Asian Morning Briefing: U.S. Stocks Fall on Greece Worries

 
                       LAST    CHANGE  % CHG 
DJIA                 17966.07    -178  -0.98% 
Nasdaq                5122.41  -37.68  -0.73% 
S&P 500               2108.58  -15.62  -0.74% 
Japan: Nikkei 225    20868.03   58.61   0.28% 
Hang Seng            27404.97   71.51   0.26% 
Shanghai Composite    4690.15  113.66   2.48% 
S&P BSE Sensex       27729.67   -74.7  -0.27% 
Australia: S&P/ASX     5686.8     2.5   0.04% 
UK: FTSE 100           6844.8    9.93   0.15% 
 
 
                    PRICE CHG  YIELD 
U.S. 2 Year              1/32   0.68 
U.S. 5 Year              4/32  1.667 
U.S. 10 Year            10/32  2.371 
Australia 10 Year        4/32  3.062 
China 10 Year          -29/32   3.65 
India 10 Year           -7/32  7.973 
Japan 10 Year            3/32  0.459 
German 10 Year           8/32   0.85 
 
 
                          LAST(MID)  CHANGE 
Australia $ (AUD/USD)        0.7704  -0.0032 
Yen (USD/JPY)                 123.9    -0.05 
S. Korean Won (USD/KRW)     1110.16     3.43 
Chinese Yuan (USD/CNY)       6.2051  -0.0026 
Euro (EUR/USD)               1.1206   0.0038 
WSJ Dollar Index               86.5    -0.01 
 
 
               LAST   CHANGE  % CHG 
Crude Oil      60.24   -0.77  -1.26% 
Brent Crude    64.23    -0.9  -1.38% 
Gold          1174.1    -2.5  -0.21% 
 

        MARKETS AT A GLANCE
        (Data as of approximately 5 p.m. ET)
        SNAPSHOT:
        U.S. stocks ended lower and bonds strengthened Wednesday, as recent optimism about a bailout deal for Greece faded. Oil prices declined after key inventory data showed that crude-oil supplies shrank last week but inventories of refined products rose. Gold prices fell and the dollar edged lower against the euro and the yen.
        OPENING CALL:
        Japanese investors will hope momentum continues from Wednesday's session, when Tokyo's benchmark Nikkei-225 index surged to its highest level in 18 years. It is now up almost 20% this year.
        What's striking about this rally is that it has occurred even though the yen has stopped declining. Clearly, it's not purely driven by the foreign-exchange gains that listed exporter companies are clocking or by the exchange-related allocated adjustments by index-driven foreign investors. Still, teasing out the impact of extraordinarily easy monetary policy from any genuine confidence in Japan's economic fundamentals remains difficult.
        EQUITIES
        U.S. stocks ended lower, with the Dow industrials posting their biggest one-day decline in nearly a month, as recent optimism about a bailout deal for Greece faded.
        The Dow Jones Industrial Average declined 178.00 points, or 1%, to 17966.07, its largest one-day drop since May 26.
        The S&P 500 index lost 15.62 points, or 0.7%, to 2108.58, and the Nasdaq Composite Index fell 37.68 points, or 0.7%, to 5122.41.
        Declines were broad-based. All 10 S&P 500 sectors were in negative territory, led by a 1.3% fall in materials stocks.
        Wednesday's losses dragged the Dow industrials into negative territory for the month, down 0.2%. Meanwhile, the S&P 500 has added 0.1% and the Nasdaq Composite has advanced 1% in June so far.
        Remarks from European finance ministers suggested a Greek bailout deal wasn't likely to be reached until later this week. Significant divisions remain over measures Greece must implement to receive the bailout funds. Earlier, Greek Prime Minister Alexis Tsipras attacked the country's international creditors after they rejected a list of economic measures Greece said it was willing to undertake in exchange for financial aid.
        "Recently, it's been Greece driving the market," said Larry Weiss, head of trading at brokerage firm Instinet. "We move around with the hope of a settlement or fear of an exit," he added.
        In corporate news, home builder Lennar said profit rose 33% in its latest quarter, beating expectations. Shares gained 4.2%.
        Japan's stock market rose to its highest level in more than 18 years Wednesday, buoyed by optimism that Greece is moving closer to a bailout deal with creditors, while China shares continued to gain their footing following a volatile streak.
        FOREX:
        The dollar edged lower against the euro and the yen as investors monitored Greece's bailout negotiations and awaited further indications of strength in the U.S. economy.
        The greenback fell 0.3% against the common currency, with one euro buying $1.1205, clawing back some ground from earlier losses.
        The dollar slipped 0.1% versus the yen to Yen123.85.
        The range-bound trading in the market highlights the degree to which investors remain unwilling to take sustained stronger views on the dollar, or rivals, until there are clearer signals from the Federal Reserve on rising U.S. interest rates. Investors were also waiting for an agreement between Greece and its international creditors to solve the cash-strapped nation's debt crisis.
        On Tuesday, the dollar soared while the euro swooned, after a Fed official boosted conviction in higher U.S. interest rates arriving this year while Greece's debt crisis appeared to move closer toward a resolution.
        On Wednesday, though, the dollar and euro moved slightly after news surfaced that the Greek-debt negotiators remain far apart, and on confirmation that the U.S. economy contracted over the first three months of the year.
        Some investors booked profits on the buck's recent gains against the euro ahead of further negotiations between Greece and its lenders over the coming days, Omer Esiner, chief market analyst at the currency brokerage Commonwealth Foreign Exchange, wrote in a research brief.
        June non-farm payrolls numbers, to be released on July 2, will likely provide direction for the dollar, said Richard Cochinos, head of Americas developed-market currency strategy at Citigroup. "We're in range-bound market, with most currencies responding to the barriers of those ranges," Mr. Cochinos said. "We're at a loss for macro news until next week."
        BONDS:
        U.S. Treasury bonds strengthened Wednesday for the first time this week as renewed worries over Greece's debt crisis stoked demand for haven assets.
        Investors had sold U.S. government debt for two days, driven by optimism that a deal was near to avoid a potential default by Greece. But The Wall Street Journal reported earlier Wednesday that significant divisions remain between Greece and its international creditors over measures Athens must implement before receiving funding.
        In late-afternoon trading, the yield on the benchmark 10-year Treasury note was 2.371%, compared with 2.409% on Tuesday. Bond prices rise as their yields fall.
        "I expect the market to remain choppy," said Brian Edmonds, head of interest rates at Cantor Fitzgerald in New York. "It is risk on and off, all based on Greece."
        Uncertainty over Greece has generated price swings in global financial markets over the past few weeks. Investors are worried that a default could threaten the stability of the financial system in the eurozone, jeopardize the region's economic growth and spark broad market turmoil.
        The Greek government can't accept the creditor demands listed in a draft submitted early Wednesday, a senior government official said after a meeting between the Greek premier and the heads of the institutions overseeing the country's bailout.
        "There are inevitably going to be some noisy speed bumps leading into a deal," said David Keeble, global head of interest-rates strategy at Credit Agricole in New York.
        COMMODITIES:
        Oil prices declined after key inventory data showed that crude-oil supplies shrank last week but inventories of refined products rose.
        Light, sweet crude for August delivery settled down 74 cents, or 1.2%, to $60.27 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell 96 cents, or 1.5%, to $63.49 a barrel on ICE Futures Europe.
        U.S. oil prices have gained 13% this year on expectations that the global glut of crude oil is due to shrink.
        U.S. commercial crude-oil supplies fell by 4.9 million barrels in the week ended June 19, the U.S. Energy Information Administration said Wednesday. That was the eighth straight week of stockpile draws since inventories hit a record high in April, the longest streak of drawdowns since the eight weeks ended Jan. 4, 2008. Analysts surveyed by The Wall Street Journal had expected a draw of 2.3 million barrels.
        "It was a much larger [draw] than a lot of traders and people watching the market were anticipating," said Oliver Sloup, director of managed futures at brokerage iiTrader in Chicago. "We've got a good couple months of high demand ahead of us," as refineries run at high rates to process crude into gasoline and other fuels.
        Gold prices fell to their lowest level in nearly three weeks, as investors bet that negotiators would eventually push through a deal between Greece and its creditors despite recent roadblocks.
        TODAY'S HEADLINES:
        Fast-Track Trade Bill Clears Senate
        The Senate cleared legislation that will strengthen President Obama's power to negotiate a Pacific trade deal, ending a weekslong struggle to lift the measure out of the political quicksand that repeatedly came close to trapping it in both chambers.
        Hack May Have Hit Up to 18 Million Social Security IDs
        Obama administration officials avoided disclosing the severity of the government employee data hack for nearly a week by defining it as two distinct breaches, according to people familiar with the matter. The U.S. suspects China was behind the Office of Personnel Management breach.
        U.S. First-Quarter Slowdown Less Severe Than Estimated
        The economic slowdown early this year was less severe than previously estimated--a 0.2% contraction--raising expectations for stronger growth later in 2015.
        Significant Differences Complicate Greece Crisis Talks
        (MORE TO FOLLOW) Dow Jones Newswires

        June 24, 2015 17:30 ET (21:30 GMT)

        Significant divisions over measures Greece has to implement to receive much-needed bailout funds were complicating crisis talks, with finance ministers warning that a deal might have to wait until later this week.
        Grocery Firms Ahold, Delhaize Agree to Merger
        European grocery chains Royal Ahold and Delhaize Group have agreed to a merger, creating one of the largest supermarket operators in the U.S., with a combined value of more than $29 billion.
        Monsanto Committed to Syngenta Bid
        Monsanto CEO Hugh Grant said the company remained committed to acquiring rival pesticide-and-seed maker Syngenta.
        Fischer: Fed Seeking Industry Input to Assess Stress Tests
        The Federal Reserve is seeking input from the financial industry and others with the goal of improving its stress tests of big banks, Fed Vice Chairman Stanley Fischer said.
        American Express Names Squeri Vice Chairman
        American Express tapped Steve Squeri as a vice chairman, a move that comes amid a reorganization in the wake of Edward Gilligan's death.
        Boeing to Slow Output of 747s
        Boeing said it would reduce output of its 747-8 jetliner to one a month in 2016, though it expects a recovery in the air cargo market to drive future sales.
        NATO Ramps Up Response to Russia
        NATO took further steps aimed at better positioning the alliance to respond to Russia, accelerating the deployment of its new spearhead rapid response force and beefing up a broader response unit.
        RECENT DJ EXCLUSIVES:
        Freeport Boiled in Its Own Oil -- Heard on the Street
        Citigroup Looks to Asia to Grow Wealth Management
        Nike Sports a Pricey Valuation--Ahead of the Tape
        Charter's Chances With Time Warner Cable Look Good -- Heard on the Street
        Bonfire of the Biotech Vanities -- Heard on the Street
        TODAY'S CALENDAR
        (Times in GMT, followed by country and event)
        2100 SKA Jun Consumer Sentiment Index
        0100 PHI Apr External Trade Performance
        0130 AUS May Job Vacancies
        0401 MAL Apr Labour Force Statistics
        0600 GER Jul GfK consumer climate survey
        0800 PHI Philippine Monetary Policy meeting & decision
        0820 TAI May Money Supply
        0830 HK May External Merchandise Trade
        1200 US Federal Reserve Governor Daniel Tarullo participates in panel discussion at Council on Foreign Relations event
        1230 US 06/20 Unemployment Insurance Weekly Claims Report - Initial Claims
        1230 US U.S. Weekly Export Sales
        1230 CAN Apr Payroll employment, earnings & hours
        1230 US May Personal Income & Outlays
        1345 US Jun US Flash Services PMI
        1345 US Bloomberg Consumer Comfort Index
        1400 US U.S. Senate committee hearing considers nomination of Janet Yellen to IMF position
        1430 US 06/19 EIA Weekly Natural Gas Storage Report
        1500 US Jun Federal Reserve Bank of Kansas City Survey of Tenth District Manufacturing
        1800 CAN Jun Bank of Canada Banking and Financial Statistics
        2030 US Money Stock Measures
        2030 US Federal Discount Window Borrowings
        2030 US Foreign Central Bank Holdings
        2301 UK Jun Hometrack UK Cities House Price Index
        2330 JPN May Household Spending
        2330 JPN May Labour Force Survey
        2330 JPN Jun CPI (Tokyo), CPI ex-Food (Tokyo)
        2330 JPN May CPI (Nation), CPI ex-food (Nation)
        (END) Dow Jones Newswires

        June 24, 2015 17:30 ET (21:30 GMT)

#FX
#Forex
#SaleForex
#AsianMorningBriefing
#US_StocksFall
#GreeceWorries