U.S. Stocks Slip as Greek Debates Debt; Bonds Rise, Loonie Falls

U.S. stocks halted the longest rally since January as protesters clashed with police in Athens while Greece’s parliament debated a bailout package. Treasuries rose as comments from the Federal Reserve fueled speculation interest rates won’t rise rapidly this year.

The Standard & Poor’s 500 Index fell 0.1 percent at 4 p.m. in New York. The gauge traded little changed for most of the session following a 3 percent rally over four days. The yield on 10-year Treasury notes lost five basis points to 2.35 percent. Canada’s dollar tumbled after the central bank cut its benchmark rate, sparking a rout in commodities currencies.

The Bloomberg Commodity Index lost 0.9 percent, as a rally in the dollar damped demand for assets from precious metals to oil. The Canadian dollar fell to its lowest since 2009, while the New Zealand and Australian currencies also tumbled to multi-year lows.

The S&P 500 surged 3 percent in the previous four days. The rally began as the Greek debt crisis neared a resolution and China shares stabilized after a rout. The U.S. gauge fell as much as 4 percent from its all-time high before rebounding.

Source: Bloomberg


China Stock Futures Plunge Amid Trading Halts, Margin Debt Drop

China’s stock-index futures fell on concern a raft of measures to stabilize equities is failing to stop the bear-market rout as traders unwind margin bets at a record pace.

CSI 300 futures for July delivery plunged 7.9 percent at 9:18 a.m. in Shanghai. The Shanghai Composite Index dropped 1.3 percent to 3,727.13 on Tuesday, extending losses to 28 percent since the June peak.

In the latest attempts to stem losses, the government has raised margin requirements for CSI 500 Index futures, while the China Securities Finance Corp. will buy more shares of smaller companies. About 43 percent of the stock market is frozen after more than a thousand companies suspended their shares.

Source : Bloomberg