World Stock Markets Trading Lower Waiting for News from Greece

Wall Street opened today in red zone, pulled down by tech companies like Apple (AAPL), Yahoo (YHOO) and Microsoft (MSFT) which fall in early trading. In Europe, markets finished lower today with the exception of Spain's Ibex 35. On the other hand, Asian markets ended mixed in today's session. Japan's Nikkei 225 lost 1.19%, Hong Kong's Hang Seng dropped 0.99% while China's Shanghai Composite added 0.21%.

The trading day in the United States was not expected to be good, especially when considering what happened in Europe, where practically all the markets recorded losses.

The day began with two companies providing its quarterly results. Shares of the Boeing Company (BA) rose more than 2% premarket, due to increased sales which rose 11% in the June quarter. Modest gains came from Coca-Cola (KO) after the beverage giant reported stronger-than-expected results for the second quarter. The company's shares gained 1.4% in premarket trading.

On Wall Street, stocks achieved losses during trading on Wednesday after Apple (AAPL) shares continue to plunge due to weaker iPhone sales than expected. The stock closed at $125.22 and the decrease of 4.2% made it the worst performer in the Dow Jones Industrial Average. All three major indexes posted losses at the end of the session.

ECB Provides €900m in Emergency Liquidity Assistance. Today, all eyes are on Greece, where the Athens Parliament is debating a new package of austerity measures that the government should implement to get access to the third rescue of 86 billion euros. The vote will take place tonight in Athens. The European Central Bank increased the emergency liquidity assistance available to Greek lenders by 900 million Euros ($981 million). The cash injection helped Greek banks reopened on Monday after three weeks. Further, Greece's public debt fell sharply in the first three months of the year to 168.8%, but has continued to be the country with the highest debt in the Euro Zone. Yesterday, Standard & Poor's upgraded Greece's credit rating by two notches to “CCC+” from “CCC-”.

Gold Drops for the 10th day. Investors shorting gold have another day of gains as prices have continued to fall after a decline in demand and the strength of the dollar. Gold future prices were trading at around $1,092 an ounce on Comex, one of the lowest values for 5 years. The U.S. Dollar Index is up by 0.22%.

After-Hours Movers. Among the various companies that will report earnings after the closing bell are American Express (AEX), Texas Instruments (TXN), Las Vegas Sands (LVS) and Qualcomm (QCOM).

Published on Jul 22, 2015
By Omar Venerio
Capital Markets, Derivatives and Financial Management Professor, Master in Finance and CFA candidate. I am an independent trader of stocks and options and passionate about the stock market.

Copyrighted 2016. Content published with author's permission.

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