(as of 7:00 AM PST)
Markets are plunging in China and Europe. There is some contagion in US markets at the open but generally damage is limited although the Dow is down nearly triple digits at the start. China's decline is especially surprising because the Chinese Central Bank added stimulus over the weekend by lowering interest rates. Still, the Shanghai Index plunged another 3%, bringing the high flying index to a more than 20% decline this month. In Europe it's all about the Greek tragedy. Greek leaders have asked for a referendum vote this week to determine its continuing relationship with the Euro while Germany and France, the two key members of the Eurozone, are digging in their heels over the frivolous attitude of Greek negotiation strategies. It could be an ugly week in global markets. Oil is down while precious metals are up a moderate amount, likely due to safe haven buying. The yield on US Treasuries are up with investors seeking the relative safety of the US dollar amid a risk off scenario.
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