It looks set to be a bad session for global markets.
Despite news that China’s central bank, the PBOC, reduced benchmark one-year interest rates and the reserve ratio requirement for banks over the weekend, something that would normally be seen as risk positive, Greece is well-and-truly mitigating that positive sentiment this morning.
Here’s the early market reaction to news that the Bank of Greece has implemented capital controls and ordered banks to remain closed until July 6 in the wake of bailout extension talks collapsing over the weekend.
- US S&P 500 -1.6%
- German DAX -4.48%
- UK FTSE -2.75%
- EUR/USD -1.54%
- USDJPY -1.24%
- USDCHF +0.63%
- AUD/USD -0.43%
US treasuries and gold are also surging upon the resumption of trade.
Here’s the 5-minute EUR/USD chart from this morning.