After the largest decline of 2015, U.S. stocks pushed higher on Tuesday with both the Dow and S&P up by about 0.50 percent just after the market’s opening. The optimistic performance follows a strong rebound in Asian markets overnight.
Markets across Asia rebounded strongly with the Tokyo Nikkei closing up 0.63 percent, Hong Kong’s Hang Sang Index up 1.09 percent, Seoul up 0.67 percent, and the Shanghai Composite up 5.6 percent. The euro is down, but some investors and traders say the experts will wait to see how the debt crisis pans out before making big moves.
According to the Wall Street Journal, Greece’s finance minister has said that some bank branches may reopen on Wednesday to service those who don’t have access to debt or credit cards, including many pension recipients. Withdrawals will be limited to €120 ($134). The finance minister, Yanis Varoufakis, has also said that Greece has no intention of paying the IMF by the end of Tuesday’s deadline, and that he instead hopes that a last-minute deal is reached.
World markets are still on edge as Greece nears its deadline. News of the a last-minute deal have given European stocks a boost and U.S. futures are also looking up.
Tom Metcalf and Robert Lafranco over at Bloomberg tallied how much the world’s 400 richest people lost yesterday and arrived at a combined $70 billion, or an average of $175 million each.
Last-minute talks are reportedly happening in Athens. One of Greece’s creditors, the European Commission, has reached out to make a deal—though it remains unclear what the details of the deal are and whether this is the same deal from last week.
The new offer will likely involve Prime Minister Alexis Tsipras trying to encourage Greeks to vote “yes” in Sunday’s referendum. Yesterday, Tsipras appeared on television to appeal to Greeks to vote “no.” Tsipras has been hinting that he would resign if the outcome of the vote is a “yes.”
On Tuesday, markets in Asia recouped the losses sustained during Monday’s sell off on the news of an impending Greek default. In China, stocks gained about 5.6 percent.
Greece is officially out of time.
A decision on whether or not the deeply indebted country will work out a plan with its creditors or default on the €1.54 billion ($1.69 billion) it owes to the IMF and EU—a move that could serve as the prelude to the country exiting the eurozone, the much feared “Grexit”— has come down to the wire, with the country’s future still uncertain today, the deadline for payments or extension. Notable economists have called for Greece to sign a deal immediately, and for its creditors to abandon austerity.
On Monday, the English text of the Greece’s referendum ballot question was posted to Twitter.
Should the agreement plan submitted by the European Commission, European Central Bank and the International Monetary Fund to the June 25 eurogroup and consisting of two parts, which form their single proposal, be accepted? The first document is titled ‘Reforms for the completion of the Current Program and Beyond’ and the second ‘Preliminary Debt sustainability Analysis’.
On July 5 Greek citizens will vote yes or no to the proposal.
The situation is already bleak. According to one estimate, Greece owes its lenders a total of €242.8 billion ($271 billion). In Greece, banks are closed, capital controls have been imposed, and the stock market shuttered. The rest of the world doesn’t have much faith in the ability for a deal to get done either. On Monday, stocks in the U.S. had their worst showing in 2015, as the Dow tumbled 350 points and the S&P had its worst day of the year Monday.
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