Europe Shares Drop With Euro as Greece Watched; China Rebounds

European stocks slipped, German bunds advanced and the euro pared a quarterly gain as investors watch developments in Greece. Chinese shares reversed losses as the government stepped up efforts to buoy sentiment amid a bear market.

The Stoxx Europe 600 Index slid 0.8 percent by 8:18 a.m. in London, the yield on 10-year bunds fell five basis points and the euro slipped 0.5 percent to trim its gain since the end of March to 4.1 percent. Standard & Poor’s 500 Index futures rose 0.2 percent. The MSCI All Country World Index climbed 0.2 percent after dropping 2.2 percent Monday. U.S. and Japanese bonds were little changed. The Shanghai Composite Index jumped 5.5 percent after slumping as much as 5.1 percent.

About $ 1.5 trillion, the most in two years, was erased from the value of global equities Monday after Greece short-circuited bailout talks by calling a referendum on creditor demands. The focus Tuesday shifts to whether Greece will default on a $ 1.7 billion payment due to the International Monetary Fund. Chinese authorities stepped up efforts to quell market panic, allowing pension funds to buy stocks as a brokerage association called on investors and fund managers to stabilize the market.

Source: Bloomberg

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U.S. Stocks Rebound From Selloff as Banks, Energy Shares Gain

U.S. stocks advanced, rebounding on the final day of the quarter, as energy and financial shares rose amid speculation the biggest selloff for equities in more than a year was overdone.

The Standard & Poor’s 500 Index rose 0.7 percent to 2,071.79 at 9:34 a.m. in New York. The benchmark slid the most since April 2014 on Monday, wiping out the year’s gain amid Greek debt turmoil.

The S&P 500’s drop Monday left it down 0.5 percent for the last three months, threatening to halt a streak of nine straight quarterly gains, the longest run since 1998. The index had climbed as much as 3 percent during the period, boosted by health-care companies amid merger activity, and as banks rallied with rising bond yields.

The gauge last week came within a point of its all-time high before slipping amid concerns that Greece wouldn’t reach a deal with its creditors before its bailout expires today.

Source: Bloomberg

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