Overnight the Shanghai market gained 5.76%. The Shenzhen market moved up 3.76%. The ChiNext market on the Shenzhen exchange climbed 3.03%. That’s being touted as a “recovery.” Greece put a detailed, credible negotiating proposal on the table tonight AHEAD of the midnight deadline. Newspaper reports from Athens say the proposal includes 13 billion euros of new austerity measures in exchange for 50 billion in new bailout money.
Greek banks have said they might not be able to open on Tuesday without help from the European Central Bank. Cash buffers are down to just 90 euros per capita. The European Central Bank will meet on Monday to decide if it will continue its emergency liquidity assistance program for Greece and at what level of funding.
Recent polls show Yes gaining in strength. A poll by Athens newspaper Efimerida ton Syntakton today showed 46% percent of Greeks would reject the creditors’ bailout offer (a No vote) and 37% would back it (a Yes vote.) Last weekend, the same poll showed 57% No and 30% Yes. Other polls give a small edge to Yes. The GPO poll put Yes at 47.1% and No at 43.2%, for example.
The last minute request by the Greek government for a delay in the 1.6 billion euro payment due to the International Monetary Fund today, for billions in debt relief, and for a new two-year bailout program failed today.
Anyone looking to see whether financial markets are done tumbling as a result of the chaos in Greece and the possibility that the country will fall out of the euro after the July 5 referendum isn’t getting any solace from early trading today in China.
The markets in Europe and elsewhere didn’t start the day in a positive mood but sentiment darkened as the trading day closed in Europe. The German DAX Index, for example, was down 2.66% near noon in New York but finished the day off 3.56%. The biggest equity retreat came in Italy—down 5.17% for the day in Milan—and Spain—where the IBEX 35 closed lower by 4.56%.
Aside from slapping on capital controls and a bank holiday to prevent current withdrawals the Tsipras government doesn’t seem to have a plan beyond the July 5 referendum. One possibility is that the government is campaigning for a No vote but secretly hoping that Greek voters will vote Yes to accept the terms offered in the last offer by the European Commission.
