IMF’s warning comes as Greece readies for a Sunday referendum on an worldwide bailout deal that Prime Minister Alexis Tsipras has urged voters to reject.
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A day earlier, Greece’s government said the country will not make its payment due Tuesday to the worldwide Monetary Fund. European Union officials say Greece would lose access to more than 16 billion euros ($18 billion) in financial support once its bailout program expires at midnight.
As per the report, large Indian IT companies have predominant revenue exposure to the Nordics, Switzerland and Benelux within the continental Europe, and relatively small markets (1-2 percent of revenue) in Germany and France. The Dow Jones industrial average fell 27.80 points, or 0.2 percent, to 17,730.11. Hong Kong’s Hang Seng gained 0.6 percent to 26,396.56 and Australia’s S&P/ASX 200 advanced 1.1 percent to 5,576.70.
Despite rallying Wednesday, stocks are lower for the week.
“If Greece wasn’t happening, this would be a major story right now”, said JJ Kinanhan, chief strategist at TD Ameritrade.
Fund managers note that Greece’s economy is only 2% of European GDP; that it has no exports that are vital to industries elsewhere; and that its current account is roughly neutral, meaning it does not have a balance-of-payment problem.
Nonfarm payrolls increased 223,000 last month, below the 230,000 that economists polled by Reuters had expected. “It is not going to derail U.S. economic growth or the Fed’s liftoff”, Swell said, referring to the Federal Reserve’s intention to raise interest rates this year.
“It could drop a country into years and years of these riots and unrest within the country…[in] much of the worst-case scenarios so far economies seem to have recovered – it’s just a matter of how long it will take”.
Centene (CNC) has agreed to buy Health Net (HNT) in a cash-and-stock deal worth $6.8 billion. The combined company plans to use the Chubb name and will have its main offices in Zurich, Switzerland, where Ace is based.
Other new reports included a solid uptick in consumer confidence, a rise in pending home sales and modest growth in manufacturing activity.
However, the status of the deal remained deeply uncertain. The low rates mean that corporations can borrow cheaply to finance acquisitions.
Airline stocks tumbled after the U.S. Department of Justice said it was investigating whether some carriers were colluding to keep ticket prices high. Thanks to a series of mergers starting in 2008, American Airlines, Delta Air Lines, Southwest Airlines and United now control more than 80 percent of the seats in the domestic travel market. The China Securities Regulatory Commission, the market watchdog, said late Thursday that it’s launching an investigation into suspected stock market manipulation, state media reported, in an indication of Beijing’s increasingly frantic efforts to halt the market slide.
KEEPING SCORE: European stocks opened sharply higher.
In energy markets, benchmark USA crude was up 47 cents at $58.80 a barrel on the New York Mercantile Exchange.
– Heating oil rose 0.1 cent to close at $1.840 a gallon. The price of the benchmark 10-year Treasury note rose, pushing down its yield to 2.38 percent from 2.45 percent just before the jobs report came out. American Airlines dropped $1.14, or 2.8 percent, to $38.80.
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– Natural gas rose 3.9 cents to close at $2.822 per 1,000 cubic feet.
