Greek Contagion Spreads, and Other Economic News
Major stock markets around the world fell sharply this morning and the euro declined even further against the US dollar as Greece's interminable economic crisis spread to global markets. A seemingly last-ditch attempt to resolve conflicts between Greece and its creditors ended in stalemate yesterday. In talks between the parties that lasted less than an hour Athens would not agree to further pension and wage cuts. Indeed, European Union officials said that Greek representatives brought no new concessions to the negotiation.
The DJIA earlier was down 0.92% in morning trading, while Hong Kong's Hang Seng index fell 1.5%.
Stateside, in sunnier news, homebuilder confidence has hit a level last seen in September. The National Association of Homebuilders/Wells Fargo index rose to 59 this month from 54 in May, easily outpacing analysts' prediction of a climb to 56. Despite lingering concerns over the ability of American consumers to make big ticket purchases like homes, it's been 12 months since this gauge dipped below 50, suggesting general long-term optimism about the strength of home construction.
