Greece to vote on debt deal; Chinese market plunges 6 per cent
The New York Stock Exchange is closed for the Independence Day holiday but there is plenty happening elsewhere today as Greece approaches a public vote on a potential deal with its creditors. If the Greek people oppose the reform proposals it is likely to mean an exit from the euro and potentially from the European Union; if they vote to accept the deal then it will mean prolonged austerity. European markets are all lower ahead of Sunday’s referendum. In China regulators have launched a probe into suspected manipulation of the markets and the Shanghai index fell 7 per cent before recovering slightly to close down 5.84 per cent. The region’s other major indexes were also lower with only Tokyo ending higher.
US stock futures are trending flat. Oil is trending lower (Brent $61.71, WTI $56.57 at 6am ET). Gold is trending higher.
The US markets are closed but the banks are open.
There are no data releases due.
Aetna to buy Humana in $37 billion deal
Consolidation in the insurance sector continues as Aetna announced Friday that it has made a $37 billion offer for Humana. The offer values Humana at 23 per cent above its share price at the closing bell Thursday and is worth $230 in cash and stock to investors.
BP settles over 2010 oil spill
BP has agreed to pay $18.7 billion to settle an investigation into the devastating Gulf of Mexico oil spill in 2010. The penalties to the US government and five states will be the largest in US corporate history and will close almost all of the claims against the company resulting from the disaster. Reuters says that the oil giant’s total pre-tax charge relating to the spill stands at $53.8 billion.