Greek Crisis Rattles World Markets

In contrast to yesterday, where fears over the solvency of the EU drove stocks down both at home and abroad, US markets were much more solid today. The Dow stayed relatively flat but eked out the day in the black, gaining just 23.16 points to close at 17,619.51. The NASDAQ lead the day in real gains with 28.40 points on the day, a change of over half of a percentage point. The S&P 500 posted a 5.47 point gain on the day, and closed at 2,063.11.

Euro Headed Toward Record Lows

One of the biggest casualties of the continuing uncertainty in Europe is the Euro itself.
The European Union, after all, is nothing if not a consolidation of countries with the purpose of using a common currency. and the fate of the currency is in jeopardy. Right now, an implosion in Greece could threaten the stability of the Euro in the same way that rumors of  a missed payment to the International Monetary Fund and European lenders threatened the stability of markets yesterday and today. In other words, the worst may be yet to come.

The Euro itself was in a poor position even before the latest round of drama over Greek debt. It was already suffering from the slow European recovery. The Euro is nearing record lows again versus the US dollar. If the situation in the European Union doesn't change soon, we could be looking at a Euro that's worth less than ever by the end of the week.

Banking Crisis in Greece

ATMs have dried up, bank doors are shuttered, and electronic banking has slowed to a crawl. It might sound like an apocalyptic scenario, but that's exactly what is playing out in Greece today. Banking for the average citizen has been restricted in the face of the looming government default. There is still a chance that Greece might receive yet another round of emergency funding from its European lenders, but nothing is guaranteed at this point. Absent the needed funds, the Greek banking situation could collapse entirely into disarray.

Widespread Gains at Home

In trading today, as a contrast to yesterday, the domestic markets held steady in the face of a plunging Europe. Even Asia had a better day than it did yesterday, posting mid-sized gains after a rally. Stocks here rose widely, with diverse sectors posting gains on the day. Manufacturer Pentair (PNR) lead the Dow in gains with 6.70% today. Monsanto (MON) was up 3.70% to $106.59. Blue chip online travel agency Priceline (PCLN) posted a gain of nearly 45 points to close the day at $1,151.37.
Published on Jun 30, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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