Greece surrendered to Europe's demands, approved austerity measures to possibly receive a bailout and finally "Grexit" out of the Euro.
European Central Bank
Shares fell, the euro stumbled and yields on weaker euro zone economies' bonds rose after Greece overwhelmingly voted against conditions for a rescue package, but there was no rout and contagion was limited.
The dollar was near a three-week high on Thursday and world stock markets had a delicate feel, as the implication of U.S. jobs data later for a possible Fed rate hike added to Europe's uncertainty over Greece.
Euro zone stocks and low-rated bonds recovered the worst of their losses on Tuesday but remained on edge as Greece looked set to default on a debt repayment to the IMF and plunge deeper into financial crisis.
U.S. stocks fell sharply in heavy trading on Monday and the S&P 500 and the Dow had their worst day since October after a collapse in Greek bailout talks intensified fears that the country could be the first to exit the euro zone.
Greece said it may impose capital controls and keep its banks shut on Monday after creditors refused to extend the country's bailout and savers queued to withdraw cash, taking Athens' standoff with the European Union and the International Monetary Fund to a dangerous new level.
Now that International Monetary Fund head Christine Lagarde has told the Fed to wait to raise interest rates, the IMF staff has followed up with suggestions that the U.S. central bank remake its communications policy and, in a phrase, ditch the dots.
Euro zone leaders will hold an emergency summit on Monday to try to avert a Greek default after bank withdrawals accelerated and government revenue slumped as Athens and its international creditors remain deadlocked over a debt deal.
The European Central Bank must continue its asset-purchasing program to ensure that euro area inflation returns to target levels, despite signs that deflation fears have eased, ECB governing council member Ignazio Visco said on Tuesday.
U.S. and European equities rose to trade near record highs on Tuesday, and the euro tumbled on signals the European Central Bank may accelerate its 1 trillion euro bond-buying program over the next two months.
The euro tumbled on Tuesday and the region's stocks and bonds jumped after the European Central Bank suggested it may speed up its 1 trillion euro bond-buying campaign slightly to account for lower market liquidity in high summer.
The European Central Bank is satisfied with the effects of its bond buying program on the economy and inflation and has no intention of ending it prematurely, ECB Executive Board Member Yves Mersch said on Saturday.
Government bonds sold off again on Tuesday, driving down stocks and helping push the euro sharply higher against the dollar.
Low-risk bonds sold off again on Tuesday driving down stocks and helping push the euro higher against the dollar. Ten-year U.S. Treasury yields, the benchmark for global borrowing costs, hit their highest since early December, while German 10-year yields added 8 basis points to 0.67 percent.
Greek Prime Minister Alexis Tsipras forecast a happy end soon to fraught negotiations with creditors on a cash-for-reform deal, and the chairman of euro zone finance ministers said talks were making progress, though not enough for a deal next Monday.
Subscribe to VCpost newsletter
Most Popular
- EU Military Spending Hits Record High of €240 Billion Following Russia's Invasion of Ukraine
- Nelson Peltz vs. Disney: Billionaire Activist Investor Seeks Multiple Board Seats as He Launches New Proxy Battle
- SoFI Is Exiting the Crypto World — Here Are the 3 Best Alternatives for Trading Crypto
- Denmark Set to Remove 1,000 Crown Banknote From Circulation
- Germany's Unemployment Rate Rises to Highest Since 2021
- Wall Street Experts Reveal Best Long-Term Investment Stocks to Buy
- New Disney Movie 'Wish' Fails to Shine at Thanksgiving Box Office
- JPMorgan Chase Is Ready to Leave China if Ordered by US Government, Bank CEO Jamie Dimon Says