Greece pounds markets

Markets opened rattled this morning with the ASX immediately plunging 2% before rebounding and selling off again now. S&P500 futures are off 1.4%.

Bonds are all strongly bid with the short and long end of Aussie yields off 5%.

The Australian dollar lost nearly 1% earlier but it is now almost flat for the day in the mid 76s trading off Chinese stimulus.

Speaking of which, Shanghai has been all over the place this morning swinging between 2.5% up and down and currently flat. In a bad sign, Chinext is down another 6%. Disappointing so far for the PBOC but early days.

All pretty much as expected.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.