Greece failed to reach an agreement with international lenders over the weekend, and is now poised to default on an IMF loan repayment due tomorrow
Stocks in Asia sold off sharply today, as Greece's inability to reach an agreement with its international creditors -- just ahead of the country's Tuesday deadline to repay an International Monetary Fund (IMF) loan -- overshadowed a bigger-than-expected interest rate cut from the People's Bank of China. Specifically, the Shanghai Composite fell 3.3%, putting it in bear-market territory. Meanwhile, Japan's Nikkei plunged 2.9% on a round of mixed data -- including a wider-than-anticipated fall in industrial production -- and a stronger yen. Meanwhile, Hong Kong's Hang Seng and South Korea's Kospi gave back 2.6% and 1.4%, respectively.
European equities are getting hit by the aforementioned Greek crisis, amid news that the country's banks will not open this week -- which is weighing on financial stocks throughout the eurozone. Meanwhile, trading in Athens will remain shuttered until July 6, one day after a scheduled referendum on Greece's bailout deal. At last check, London's FTSE 100 is off 1.8%, France's CAC 40 is down 3.6%, and the German DAX has given back 3.1%.
