The Dow Jones Industrial Average (DJIA – 17,776.91) tracked a almost 328-point range today – and explored both sides of breakeven – before closing up 93.3 points, or 0.5%.
The focus on Wall Street remained in Greece on Monday after more than 61% of voters there, in a Sunday referendum, cast a ballot against bailout demands from the nation’s European creditors that included a range of austerity measures including higher taxes and pension reforms.
US-listed Chinese companies fell, including e-commerce giant Alibaba (-0.8 per cent), as well as the smaller social networking platform Renren (-7.0 per cent), Qihoo 360 (-7.1 per cent) and Youku Tudou (-6.7 per cent). Varoufakis said there was “a certain preference” among European creditors that he no longer be involved in negotiations. Global stocks mostly fell on Tuesday as Greece’s spiraling crisis kept investors on edge and as Chinese markets dropped despite government intervention.
Elsewhere in Asia, Hong Kong’s Hang Seng dropped 3.67% to 7610, while Japan’s Nikkei shed 2.08% to 20112.
The vote raised immediate worries about a cash crunch in Greece and the debt-wracked country’s ability to stay in the eurozone. The yield on the benchmark 10-year US Treasury note dropped 0.083 percentage point to 2.308%. Bond prices and yields move inversely. Economists expect the gauge to have ticked higher to 56.8 in June from 55.7 in May. The report was seen as a huge positive and has many traders and analyst believe that the USA economy could grow by close to 3 percent during the second half of the year after contracting during the first quarter due to the harsh winter conditions and stronger dollar.
Allergan (NYSE:AGN) gained 0.1 percent to $306.82, reversing an earlier loss, after the Botox maker said it reached a deal to buy the exclusive rights to two experimental migraine drugs from Merck (NYSE:MRK) for $250 million. However, liquid gold pared a significant portion of these losses in late trading, and, at the close, August-dated crude was down just 20 cents, or 0.4%, at $52.33 per barrel.