The stock markets in the United States declined due to investors’ concern regarding the potential exit of Greece from the European region. The equity markets in the Asia-Pacific and Europe also declined.
Investors were concerned regarding the possibility that Greece will not be able to repay the $1.8 billion due to the International Monetary Fund (IMF) on Tuesday.
Odey Discusses Howard Marks’ Astute Observation On Why Hedge Fund Alpha Is Increasingly Rare [January Letter]
According to a copy of the firm's January investor update which ValueWalk has been able to review, the Odey Asset Management Odey Special Situations Fund returned 7.7% in January, outperforming its benchmark, the MSCI World USD Index, by 8.7%. Q4 2020 hedge fund letters, conferences and more The $60 million fund, which Adrian Courtenay manages, Read More
Commenting on Greece’s situation, Michael James, managing editor of equity trading at Wedbush Securities told Bloomberg, “We finally reached the breaking point. With so much uncertainty around a potentially negative outcome, the knee-jerk reaction will be to reduce risk assets. You have a potentially very ugly situation this week.”
In Greece, banks and markets were closed after Prime Minister Alexis Tsipras interrupted the final debt negotiation early Saturday. He called for a July 5 referendum whether to accept the terms of the financial aid package offered by its international creditors.
Mark Haefele, a global chief investment officer at UBS Group commented, “The Greek tragedy opened a new act over the weekend. He thinks that Greece will remain in the Eurozone, but the lack of resolution is creating a market volatility.
Leon Cooperman of Omega Advisors said he sees a 50% chance for Greece to exit the Europen region.
Meanwhile, the National Association of Realtors (NAR) reported that the sales of existing homes increased 5.1% to a seasonally adjusted annual rate of 5.34 million in May.
NAR Chief Economist Lawrence Yun said, “May home sales rebounded strongly following April’s decline and are now at their highest pace since November 2009. Solid sales gains were seen throughout the country in May as more homeowners listed their home for sale and, therefore provided greater choices for buyers.”
- Dow Jones Industrial Average (DJIA) – 17,596.35 (-1.95%)
- S&P 500- 2,057.64 (-2.09%)
- NASDAQ- 4,958.47 (-2.40%)
- Russell 2000- 1,248.88 (-2.42%)
- EURO STOXX 50 Price EUR- 3,468.90 (-4.21%)
- FTSE 100 Index- 6,620.48 (-1.97%)
- Deutsche Borse AG German Stock Index DAX- 11,083.20 (-3.57%)
- Nikkei 225- 20,109.95 (-2.88%)
- Hong Kong Hang Seng Index- 25,966.98 (-2.61%)
- Shanghai Shenzhen CSI 300 Index- 4,195.55 (-3.34%)
Stocks in Focus
The stock price of Seres Therapeutics declined more than 26% to $38 per share, the biggest decliner among the companies listed on NASDAQ. The company went public on June 26 and offered its common stock for $18 per share. Its current stock price is still $20 higher that is IPO price.
The stock value of Fiat Chrysler Automobiles dropped almost 7% to $14.53 per share. Bronstein, Gewirtz & Grossman is investigating whether the automaker and some of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
Yandex fell more than 6% to $14.84 per share. Sell-side brokerage firms covering the stock issued a 1.5 rating, which represent a Buy rating. Their average 12-month price target on the stock is $30.27 per share. Wall Street analysts expect Yandex to deliver earnings of $0.17 per share for the quarter ending June 30.