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Shares Rise as Investors Watch Greek Debt Talks; China Down

  • Associated Press

A bank manager tries to explain the situation to hundreds of pensioners queuing outside a National Bank branch in Athens, Greece, July 1, 2015.

A bank manager tries to explain the situation to hundreds of pensioners queuing outside a National Bank branch in Athens, Greece, July 1, 2015.

Global shares rose Wednesday as investors awaited further developments after Greece failed to make a debt repayment due Tuesday. Investors worry a default on its debts will lead Greece to eventually drop out of the euro currency, a move that could potentially set off turmoil in financial markets. But they appeared to be taking a wait-and-see stance.

Keeping score

European markets powered back after dropping on Tuesday, with Germany's DAX up 1.1 percent at 11,059.78 and France's CAC 40 gaining 1.1 percent to 4,841.98. Britain's FTSE 100 rose 0.9 percent to 6,577.63. New York looked set to extend gains, with Dow futures up 0.5 percent and S&P futures 0.6 percent higher.

Greek debts crisis

Greek Bank Controls

  • All banks closed until July 6
  • ATM withdrawals limited to $66 a day
  • Foreign bank cards not affected by limits
  • Stock exhanges closed June 29
  • Transfering money out of Greece prohibited
  • Pension payments are exempt from restrictions

Greece's European bailout program ended Tuesday at midnight without an extension or a new deal with creditors and the government failed to make a payment of about 1.5 billion euros due to the International Monetary Fund by June 30.

The IMF's communications director, Gerry Rice, said in a statement that "Greece is now in arrears and can only receive IMF financing once the arrears are cleared.'' A request for new aid from Greece's European neighbors has yet to be decided upon, and Greece's voters will face a referendum on whether to agree to terms set by creditors for further assistance.

The quote

"International markets appear to have found a level where they are happy to sit and wait on the next developments in the Greek debt crisis. Greece's failure to meet the deadline on its IMF payment looks to have been fully anticipated by markets.

Barring unknowns, the next critical event for markets will be the outcome of Sunday's referendum,'' Ric Spooner, chief market analyst at CMC Markets, said in a commentary.

Asian scoreboard

Japan's Nikkei 225 stock index edged 0.5 percent higher to 20,329.32 after a central bank survey showed businesses holding unexpectedly optimistic outlooks despite recent weak data.

The Shanghai Composite Index, which has seen wild swings over the past few days, tipped back into negative territory, tumbling 5.2 percent to 4,053.70. South Korea's Kospi rose 1.1 percent to 2,097.89, while Australia's S&P ASX/200 rose 1.0 percent to 5,515.70. Shares in Southeast Asia were higher. Hong Kong's market was closed for a holiday.

Energy

Benchmark U.S. crude fell $1.15 to $58.32 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $1.14 the previous day to close at $59.47. Brent crude, used to price international oils, fell 99 cents to $62.60 in London after gaining $1.58 on Tuesday.

Currencies

In currency trading, the dollar rose to 122.59 yen from Tuesday's 122.43 yen. The euro fell to $1.1108 from the previous session's $1.1130.

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