Euro Lower Amid Greece Turbulence

 
Snapshot: 

        -EUR/USD at 1.1148-51; 10-year Treasury yield at 2.325%; stock futures higher; Nymex crude at $58.65; gold at $1175.20
        -Watch for: Retail Economist/Goldman Sachs weekly chain store sales; Canada GDP; Johnson Redbook retail sales; S&P/Case-Shiller home price index; ISM-Chicago business survey; consumer confidence index; speech by Fed's Bullard; earnings from ConAgra
        News: For Fed to Delay Rate Hikes, Global Tumult Would Need to Infect U.S; Eurozone Inflation Rate Eased in June; Greek Banks Open For Pensioners
        The euro was 0.6% lower against the dollar in early European trade Tuesday, while the yen rose against other major currencies as continued concern over Greece's future in the eurozone increased demand for safe-haven assets.
        While the jitters that roiled global markets and drove the yen higher Monday eased somewhat, the worries over the Greek situation continued to simmer.
        "Uncertainty will likely continue for the rest of the week," said Shinji Kureda at Sumitomo Mitsui.
        At 4.50am ET, USD/JPY was 121.99-2.00, while EUR/USD was 1.1148-51.
        "(The euro) will likely continue to fluctuate in reaction to headlines," said Shigetake Nakayama at Bank of Tokyo-
        Mitsubishi.
        U.S. Treasurys were little changed in Europe as investors waited for the Greek referendum on Sunday in a holiday-shortened week.
        The September Treasury contract was flat at 126-065 and the 10-year cash yield was 2.325%. Investors were also waiting for important data points with ADP employment and ISM manufacturing releases on Wednesday before the closely watched labor data on Thursday.
        In Europe, the yield on the 10-year German government bond was about 0.03 percentage point lower at just below 0.76%.
        The yield on Greek two-year bonds was around 36.9%-up close to one percentage point on the day-having soared more than 14 percentage points on Monday. The yield on the 10-year bond was a third of a percentage point higher at around 14.9%.
        U.S. stock futures tilted higher, as calm seemed to return to markets after a Greek-led selloff drove Wall Street to its worst session of the year the day before.
        Investors are also set to wrap up the second quarter and the month, with a reading on consumer confidence and an update from the housing sector ahead.
        Futures for the Dow rose 44 points, or 0.3%, while those for the S&P were higher by 6.5 points, or 0.3%, and futures for the Nasdaq rose 9 points, or 0.2%.
        Greece on Tuesday is slated to miss its $1.71 billion payment to the International Monetary Fund, and the country's bailout program also expires the same day. Questions remain about the future of the country as it heads toward a referendum Sunday that is being framed as a vote on whether Greece should stay in the eurozone.
        "Financial markets are likely to settle down a little on Tuesday following widespread panic-driven selling at the start of the week," said Craig Erlam at Oanda. "I don't think markets were particularly ready for those developments ... as we're just so used to an 11th-hour deal that I think people just assumed that would happen again," he said.
        Still, a "negative and uncertain tone" may continue throughout the week as the referendum draws closer, Erlam said.
        Oil prices rose as the Iranian nuclear talks looked set to miss today's deadline while Greece continued to roil the broader financial markets.
        The talks between Tehran and the West are likely to continue past the self-imposed deadline as negotiators in Vienna are yet to clinch a deal that would eventually unlock millions of barrels of Iranian oil to the global market.
        Brent crude for August delivery rose 1.1% to $62.72 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures for July were trading up 0.6% at $58.65 a barrel.
        Gold lost 0.3% to trade at around $1,175.20 a troy ounce.
        For Fed to Delay Rate Hikes, Global Tumult Would Need to Infect U.S.
        A wave of financial turbulence overseas could delay the Federal Reserve's plans to raise short-term interest rates in the months ahead, but only if it ends up knocking the U.S. economy off track.
        Eurozone Inflation Rate Eased in June
        The eurozone's annual rate of inflation eased in June as consumer prices barely rose from their year-ago levels, a reminder that the risk of a slide into deflation hasn't been eliminated.
        Greek Banks Open For Pensioners
        Some Greek banks are expected to reopen Wednesday for pensioners who don't have debit or credit cards, the finance ministry said in a statement.
        Europe, Athens Battle for Greek Hearts and Minds
        European and Greek leaders began their battle for the Greek electorate, each trying to convince voters-who suddenly hold the future of Europe's currency union in their hands-as to which path will bring the least pain.
        China May Lower Stamp Duties on Stock Purchases
        The move to encourage stock purchases would be the latest effort by the Chinese authorities to stem the recent market rout.
        U.S. Government Web Portal Shut Down Over Security Concerns
        The U.S. Office of Personnel Management-still scrambling to assess the fallout from a wide-scale breach of sensitive employee records-said it has halted a web-platform that had allowed people to submit background investigations electronically.
        Japan's SMBC Nears Deal for GE Europe Private-Equity Finance Unit
        Japan's Sumitomo Mitsui Banking is nearing a deal to buy General Electric's European private-equity finance business, according to people familiar with the matter.
        3G Accelerates Shake-Up Ahead of Kraft-Heinz Merger
        H.J. Heinz Co.'s private-equity owner accelerated its shake-up of Kraft Foods Group Inc.'s management ranks, ahead of a shareholder vote on approving their combination.
        Celgene, Juno in 10-Year Collaboration
        Celgene agreed to pay Juno Therapeutics $1 billion as an initial investment in a 10-year collaboration that is one of the most ambitious partnerships attempting to harness the immune system to fight cancer.
        Write to Sarka Halas at sarka.halas@wsj.com
        (END) Dow Jones Newswires

        June 30, 2015 06:24 ET (10:24 GMT)

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