Chinese stocks are still in free-fall, as investors rush to sell what they still can after a fresh wave of share suspensions that have now halted trading in half the stocks on the two main exchanges. The selloff has worsened as retail investors face margin calls, despite Chinese government attempts to prop up the market. (FT)
Oil crossed an important symbolic line yesterday – prices are now 20% off their YTD high achieved in May. When prices fall by 20% or more, this is commonly defined as a “bear” market. A potential nuclear deal with Iran, the Chinese slowdown, and Greek turmoil are all contributing to the decline. (WSJ).
Eurozone leaders have set a Sunday deadline for the Greek government to table a new proposal incorporating tougher economic measures if the country wants to avoid defaulting on the ECB and crashing out of the euro. Any deal would involve the adoption of policy overhauls that were already resoundingly rejected by Greek voters last Sunday. (WSJ)