Euro Drops as Yen Sees Haven Bid on Greek Rejection of Austerity

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The euro dropped to a one-week low against the dollar as Greeks voted against yielding to further austerity, raising the risk of an exit from the currency union.

The common currency pared its losses as Finance Minister Yanis Varoufakis’s resignation boosted speculation Greece will reach a deal with its creditors. Sixty-one percent of Greek voters backed the rejection of further spending cuts and tax increases in a referendum, data on the Interior Ministry website show. The yen strengthened against most of its major peers as the crisis spurred demand for haven assets.

The euro fell 0.5 percent to $1.1056 at 5 p.m. New York time, having declined as much as 1.3 percent to reach $1.0970, the lowest level since June 29, after the announcement of the referendum. The shared currency weakened 0.7 percent to 135.52 yen. Against the dollar, the yen rose 0.2 percent to 122.57.

Source : Bloomberg

Gold Turn Up as French and German Leaders Meet

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Gold turned higher on Monday as France and Germany told Greece the door was open to negotiations after Greek voters had rejected the terms of a bailout package.

Spot goldwas up 0.2 percent at $1,169.25 an ounce by 3:08 p.m. EDT (1908 GMT), while U.S. gold futures settled up $9.70, or 0.8 percent, at $1,173.20 an ounce.

Leaders of France and Germany told Greece's government the door for negotiations with creditors remained open but urged it to make credible proposals at a euro zone summit to reach a cash-for-reform deal and so avoid a euro zone exit.

Gold prices turned higher on expectations of a statement after French President Francois Hollande and German Chancellor Angel Merkel met to discuss Greece, said Tai Wong, director of base and precious metals trading for BMO Capital Markets in New York.

The Greek vote leaves the country in uncharted waters, risking a banking collapse. Without more emergency funding from the European Central Bank, Greece's banks could run out of cash within days. European leaders called a summit for Tuesday to discuss their next move.

Source : Reuters

Asian Stocks Climb After Rout as Investors Weigh Greece Crisis

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Asian stocks rose, with the regional benchmark index rebounding from the biggest drop since February 2014, as investors weighed developments in Greece’s debt crisis before an emergency meeting of European leaders.

The MSCI Asia Pacific Index gained 0.4 percent to 144.06 as of 9:02 a.m. in Tokyo after falling 2 percent on Monday. The initial shock waves that hit markets after Greece’s decision to call a referendum on austerity terms dissipated into a ripple by the end of Monday trading, as investors speculated the crisis wouldn’t spread beyond the nation’s borders. Greece is now under pressure to come up with a plan to stay in the euro after Greeks voted to reject further austerity in Sunday’s vote.

Euro-area leaders and finance ministers gather Tuesday for an emergency meeting after German Chancellor Angela Merkel said “time is running out” for Greece to come up with a plan to stay in the currency union. The European Central Bank maintained the level of Emergency Liquidity Assistance available to Greece, while tightening terms related to collateral. Greek banks remain shut through Wednesday.

Greek Prime Minister Alexis Tsipras replaced Finance Minister Yanis Varoufakis, who resigned Monday after more than five months of fruitless back-and-forth in negotiating with creditors. Tsipras is betting that a less confrontational face will help him bring German Chancellor Angela Merkel and other European leaders back to the table.

Source : Bloomberg

Japan Stocks Rise as Greece Aftermath Turns to Ripple on Markets

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Japanese stocks rebounded after investors in the U.S. shrugged off the threat of Greece’s rejection of austerity measures.

The Topix added 1.1 percent to 1,638.55 as of 9:01 a.m. in Tokyo, after falling 1.9 percent on Monday. The Nikkei 225 Stock Average advanced 1.2 percent to 20,342.51. E-mini futures on the Standard & Poor’s 500 Index rose 0.2 percent after the underlying gauge lost just 0.4 percent on Monday. The Europe Stoxx 600 Index fell 1.2 percent.

The initial shock waves that hit markets after Greece’s decision last week to call a weekend referendum on austerity terms had dissipated into a ripple by the end of Monday trading, as investors speculated the crisis wouldn’t spread beyond the nation’s borders. Greece is now under pressure to come up with a plan to stay in the euro.

Euro-area finance ministers meet Tuesday for an emergency meeting after German Chancellor Angela Merkel said “time is running out” for Greece to come up with a plan to stay in the currency union. The European Central Bank maintained the level of Emergency Liquidity Assistance available to Greece, while tightening terms related to collateral. Greek banks remain shut through Wednesday.

Source : Bloomberg

U.S. Stocks Retreat as Greece Scrambles to Avoid a Cash Crunch

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U.S. stocks fell, with the Standard & Poor’s 500 Index extending its steepest weekly drop since March, as Greece scrambled to avoid a cash crunch and energy shares tumbled with the price of oil.

The S&P 500 slipped 0.4 percent to 2,068.79 at 4 p.m. in New York, after earlier erasing a 0.9 percent drop. The gauge lost 1.2 percent last week.

Source: Bloomberg