Anti-President Mohamed Mursi protesters watch a speech by him on TV at a cafe at Tahrir Square in Cairo July 2, 2013.
Good morning! Here’s what you need to know.
- Markets sold off overseas. Asia was red across the board with Japan’s Nikkei falling 0.3% and Hong Kong’s Hang Seng plunging 2.4%. Europe continues to trade lower with the broad Euro Stoxx 50 down 2.0%. U.S. futures are modestly lower.
- Markets in Portugal are crashing this morning following the resignation of the country’s finance minister, who cited disputes over controversial austerity programs as the driver of the decision. Portuguese stocks are down more than 6% today, and the yield on the 10-year Portuguese government bond is up around 150 basis points to above 8%.
- Egypt is bracing for a showdown today after the military gave the government an ultimatum that it would suspend the constitution, disband parliament and install a new leadership unless the demands of millions of protesters are met. Current President Mohamed Morsi has vowed to protect his “constitutional legitimacy” with his life. The military has set a deadline for Morsi of 10 a.m. ET today.
- In after-hours trading Tuesday evening, oil rose above $100 a barrel for the first time since September, thanks in part to the growing unrest in Egypt. After reaching a high of $102.18 last night, oil has backed off a bit and is now trading around $101.30, up 1.7%.
- Toyota is recalling 185,000 vehicles globally due to an electric glitch that causes its power steering system to malfunction.
- The Treasury Department issued a statement saying that the White House would delay until 2015 the enforcement of the requirement for business to provide workers with health insurance under the Affordable Care Act, aka “Obamacare.” Under the ACA, businesses employing 50 or more workers would have to offer health insurance or pay a penalty of $2,000 per worker.
- Jeff Saut, the top strategist at Raymond James, blasted an email that read: “This is a big deal. A major 2H risk off the table…” Some economists noted that a reduction in “hours worked” in some industries was a sign that employers were reducing hours intentionally to dodge this cost.
- It’s jobs week in America. At 8:15 a.m. ET we’ll get the ADP survey of private payrolls. Economists are looking for private companies to have added 160,000 payrolls, up from 135,000 a month ago.
- At 8:30 a.m., we’ll get initial weekly unemployment claims. Economists are looking for a reading of 345,000, down a tick from 346,000 a week ago.
- Markets will close early today and will be closed on July 4 for the U.S. Independence Day holiday.
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