Markets React to Greek Bank Closures
June 29, 2015
European stocks and bonds, as well as the euro, fell as Greece shut banks and implemented capital controls.
• European stocks and bonds, as well as the euro, fell as Greece shut banks and implemented capital controls. After a tumultuous weekend in Greece’s debt crisis, stocks around the world tumbled sharply, but investors say the broader impact on financial markets was limited because Greece is no longer enmeshed in the region’s financial system. A weekend breakdown in negotiations between Greek government and its creditors left the country teetering on the brink of default and pushed it closer than ever to an exit from the eurozone. Many investors remain optimistic that Greece can eventually strike a deal to avoid a messy exit from the eurozone. But even if the country returns to the drachma, many are confident that the fallout can be largely contained to Greece. [WSJ]
• The Supreme Court struck down the EPA’s first-ever limits on mercury emissions and other toxic air pollutants in a significant blow to the Obama administration’s environmental agenda. The 5-4 split decision ruled the EPA must reconsider the mercury rules because it didn’t properly take into account the costs of the regulations before deciding to adopt them. It doesn’t prohibit the agency from limiting mercury emissions from power plants, so long as the EPA gives upfront consideration to the price tag for its regulations. But the ruling means the agency will have to go back to the drawing board, which could push any new emissions rules into the twilight of President Obama’s time in the office-or beyond. [WSJ]
Economic Indicators & News
• U.S. Pending Home Sales are at the highest level in nine years. As a sign that the housing market is gaining traction after a shaky start to the year, the index tracking contract signings increased 0.9% to a seasonally-adjusted 112.6, the highest since April 2006. [Bloomberg]