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Greece Drives Global Tensions, China Props Up the Shanghai Composite


Today's financial recap and tomorrow's financial outlook.

Today at T3 Live

Around noon today, Buzz & Banter contributor Marc Eckelberry advised traders to be cautious as ISEE all index/ETF call put climbed back to levels indicating complacency.

Click here to learn more about the Buzz & Banter

Market Recap

Greeks decided to vote "no" on this past weekend's bailout referendum, causing markets to drop as investors fear the country won't be able to secure a bailout deal.

The S&P 500 closed down 0.4% at 2068.77.

Economic  data for the day was mixed. Markit US Composite  & Services PMI data were in-line with analysts' expectations.The ISM Non-Manufacturing Composite came in below expectations while Labor Market Conditions missed completely.

Bond yields dropped as investors flocked towards safer assets due to the Greece situation. 

The VIX (VIX) jumped hit as high as 18.95 intraday, but rolled over to finish at 17.13, up 2.0%.

Oil experienced its worst drop since April, falling over 7% as economic fears around the world pushed prices down.

The US dollar rallied modestly against most major currencies, but lost some value against the yen and British pound.

Despite the situation, some sectors were able to rise. Real estate, biotech, and utilties were able to finish in the green.

Social media, and emerging markets posted the biggest losses.

Bloomberg reported that Teva Pharmaceuticals (TEVA) will be upping its bid for Mylan Pharmaceuticals (MYL) by as much as $2 billion with a revised offer of $86 to $88 a share. In April, MYL refused a bid  from TEVA at $82 a share.

Aetna (AET) shares fell 6.4% after announcing Friday that it would acquire Humana (HUM) for $37 billion.

Across the Atlantic in Europe, markets took a pummeling. The German DAX tumbled 1.52%, with all other major euro indices posting similar losses. Italy's FTSE MIB took the biggest hit, closing down 4.03%.

On the Pacific front, Chinese markets rose after the People's Bank of China announced a major liquidity infusion to China's state-owned broker financing company in an effort to keep stocks propped up.  The Shanghai Composite rallied 2.4%.

Tuesday's Financial Outlook

May Trade Balance, May JOLTS Job Openings, and July IBD/TIPP Economic Optimism data are on the economic calendar for tomorrow.

Overseas, the Reserve Bank of Australia will announce its rate decision, Switzerland will post its unemployment rate, and Japan will report its trade balance.

There are no major companies reporting earnings.
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