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December 14, 2017
Tuesday, June 30, 2015

Global shares trim gains as Greece default looms

A headline concerning Greece''s debt crisis scrolls across a stock ticker at the New York Stock Exchange in the afternoon in New York City.

US stocks finished up after a choppy trading day as investors held out hopes for a deal to keep Greece in the euro even as it veered close to a potential debt default.

Greece, hours from missing a 1.6 billion euro ($1.8 billion) payment due to the International Monetary Fund, submitted a new aid proposal to its creditors, calling for debt restructuring in what seemed like a last-ditch effort by Athens to resolve its impasse with lenders.

The Greek government indicated that it could change its stance on a referendum it scheduled for Sunday if a new loan request could be agreed, euro zone sources told Reuters.

After starting with a rally and then turning negative along with European equities, Wall Street reversed course again in the afternoon on hopes that Greece's Prime Minister Alexis Tsipras was showing signs of willingness to talk.

US corporations have limited exposure to Greece, but investors are concerned about the fallout across Europe if the country exits the euro zone.

Volatility picked up also due to the expiration of quarterly options. The expiry of weekly options is a day early due to US Independence Day holiday observance on Friday.

On Monday, U.S. stocks had fallen sharply in heavy trading and the S&P 500 and the Dow had their worst day since Oct. 9 due to worries about Greece.

The Dow Jones Industrial Average index ended showing a decline for the first half of 2015. The S&P 500 benchmark showed its first quarterly decline in ten quarters but Nasdaq showed its 10th consecutive quarter of gains.

The S&P, the Dow and Nasdaq all closed lower for the month.

Dramatic headlines out of Greece have overshadowed US data so far this week. Single-family home prices rose in April from a year earlier but at a slower pace than forecast, a closely watched survey said today.

A separate report showed the US consumer confidence index rose more than expected to 101.4 in June. The consensus was for a reading of 97.3.

The Dow Jones industrial average rose 23.16 points, or 0.13 percent, to 17,619.51, the S&P 500 gained 5.48 points, or 0.27 percent, to 2,063.12 and the Nasdaq Composite added 28.40 points, or 0.57 percent, to 4,986.87.

European shares extended the previous day's steep declines in choppy trading today as Greece headed towards default on a crucial debt payment to the International Monetary Fund.

The pan-European FTSEurofirst 300 also finished 1.3 percent lower. Britain's FTSE 100, Germany's DAX and France's CAC slipped 1.3 to 1.6 percent, while the region's volatility index climbed to an eight-month high. The Greek market remained shut today.

Meanwhile, Japan's Nikkei share average rebounded after posting its second-biggest daily drop this year in the previous session, but the market remained cautious over developments in Greece, while Sony Corp tumbled after it announced a fundraising plan.

The Nikkei share average ended 0.6 percent higher at 20,235.73. The broader Topix gained 0.3 percent to 1,630.40 and the JPX-Nikkei Index 400 rose 0.4 percent to 14,716.19.

Sony said it planned to raise up to 440 billion yen ($3.6 billion) by issuing new shares and convertible bonds to invest in its fast-growing image sensors business. It dived 8.3 percent to a near three-month low and was the second most traded stock by turnover.

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