Good morning! Here are the 10 things you need to know in markets today.
Greece has officially missed its payment to the IMF. Though this is not technically considered a “default” — the IMF now considers Greece “in arrears” — Greece has now officially not paid the €1.6 billion (£1.13 billion, $US1.8 billion) it owed the IMF by Tuesday.
Pro-euro supports held a massive rally in Athens last night ahead of Sunday’s bailout referendum in Greece. Our reporter Mike Bird was on the ground covering it all.
Russia is going to review whether or not it was legal for the Soviet Union to recognise the Baltic states as independent nearly 25 years ago, according to a report by Russian news service Interfax. Estonia, Latvia, and Lithuania were Soviet republics until the dissolution of the USSR back in 1991.
Asian markets are mildly positive, bar China’s benchmark Shanghai Composite. Hong Kong’s Hang Seng in up just over 1%, Japan’s Nikkei is up 0.4%, but the Shanghai Composite is down 0.7%. China’s stock market has struggled with huge volatility in recent weeks.
Data on manufacturing in Europe and the US is due today. Markit’s PMI reading for the eurozone is expected to show a mild acceleration to 52.5, where 50 is no growth, while US manufacturing is forecast to hold steady at 53.4.
China’s manufacturing PMI report for June was released overnight and it missed expectations. At 50.2, the reading was below the expected increase to 50.3. It was unchanged from May.
The World Bank has warned China that failure to reform its state-dominated financial sector could end “three decades of stellar performance.” The ruling Communist Party has pledged a wide range of economic reforms and the Washington-based institution said reducing the “unique and distorted role of the state” in banking and the wider financial sector was crucial.
Ukraine has suspended all Russian gas purchases following a breakdown of price negotiations aimed at keeping supplies running for the next three to six months. The state energy company Naftogaz said in a statement it would still continue transporting Russian gas supplies westward to its other European customers.
Two Uber executives are to stand trial in France accused of “misleading commercial practices,” the FT reports. It follows vicious protests against the taxi hailing app’s unlicensed UberPOP service across France last week.
The deadline for an interim nuclear deal between Western powers and Iran has been extended to at least July 7. Negotiations continue over an agreement that would curb Tehran’s nuclear program in exchange for lifting economic sanctions, the New York Times reports.