Trading at the New York Stock Exchange (NYSE) was suddenly halted around 11:32 a.m. Eastern Time because of what officials termed a “computer glitch.”
The market was down over 200 points (over 1%) at the time of the halt.
“We’re currently experiencing a technical issue that we’re working to resolve as quickly as possible,” Marissa Arnold, an NYSE spokeswoman, said in an e-mailed statement. “We will be providing further updates as soon as we can, and are doing our utmost to produce a swift resolution, communicate thoroughly and transparently, and ensure a timely and orderly market re-open.”
The Nasdaq reported to problems and said they continue to trade stocks that are listed on the NYSE.
“It’s been a little bit of a bumpy day. We had some technical problems even before the opening,” said Art Cashin, director of floor operations at the NYSE, in a CNBC interview.
“This will not cause a move in any particular direction, so I would kind of wait it out and see what happens,” he added.
The uncertainty about Greece and a massive selling of Chinese stocks were driving the market lower.
The Department of Homeland Security told CNN they found “no sign of malicious activity” at the stock exchange and no sign of a cyberattack.
Greece has until the end of the week.
That’s the message being sent by European leaders who are meeting to discuss the nation’s rejection of austerity measures and bailout terms to help the country out of their default to the International Monetary Fund (IMF).
The deadline comes after a heated meeting Tuesday among members of the European Union. If there is not an acceptable proposal on Sunday, Greece could be ejected from the Eurozone.
“The stark reality is that we only have five days to find the ultimate agreement,” said a visibly irritated Donald Tusk, the European Council president. “Until now I have avoided talking about deadlines. But tonight I have to say it loud and clear — the final deadline ends this week.”
“I’m strongly against Grexit (the nickname for a Greece exit from the Eurozone),” European Commission President Jean-Claude Juncker said. “But I can’t prevent it if the Greek government is not doing what we expect the Greek government to do.”
Greece’s Prime Minister Alexis Tsipras had told Greek voters if they rejected the referendum he could make a deal with Europe “within 48 hours.” That time limit passed without a formal proposal and only some comments from the nation’s new finance minister reading off handwritten notes.
French President Francois Hollande said that the European Central Bank (ECB) would likely provide money Wednesday to keep Greek banks afloat through Sunday.
The rejection of the Greek referendum and a massive stimulus action by China are not hitting all world markets as much as feared except in the area of oil.
U.S. crude oil fell over 7 percent to $52.53 a barrel, the lowest level since April. Brent crude, the world standard, fell over 6 percent to $56.50. The markets were hit with pressure from the Greek and Chinese situations plus Iran is preparing to flood the market after sanctions get lifted from a potential nuclear deal.
“Even without Greece, China’s stock market woes and Iran priming to hit the market with more barrels, the demand picture in oil has only been okay while the supply picture has been phenomenal,” said John Kilduff, partner at New York energy hedge fund Again Capital, told CNBC. “With these number of bearish elements weighing on the market now, the only thing of support has been the seasonal demand in gasoline, and even that will be going away soon.”
American stock markets were down after the Greek “no” vote but not as much as feared by analysts.
The Dow ended the day down 47 points or 0.3%. The S&P 500 as down 0.4% and Nasdaq was down 0.3%.
“There’s been no panic of any kind,” Paul Hickey, co-founder of Bespoke Investment Group told clients according USA Today. “The market remains faithful that the European Central Bank and other European institutions have done an adequate job firewalling the eurozone against Greece.”
The resignation of the Greek finance minister Monday is believed to have helped mute the impact of the Sunday referendum.
Greek voters sent a firm “no” to the demands of European creditors when they voted by a 61-39% margin on Sunday’s referendum on austerity measures.
While the citizens of the country cheered, the rest of the world watched as the nation took steps closer to bankruptcy and bank failure. The banks in Greece had been shut down for the last week because of low balances and were only running because of emergency funds from the European Central Bank. ECB officials plan to meet Monday to see if they continue to prop up the banks and if so, for how long.
Voters told news outlets they were tired of the demands of creditors and that a rejection of tax increases and pension cuts was “a matter of national dignity” according to the New York Times.
The vote was also seen as a victory for Prime Minister Alexis Tsipras, who ran on a campaign platform of rejecting new austerity measures. He claims that the vote was not a vote to “rupture” from Europe.
“I’m fully aware that the mandate that I was given (by voters) is not for a rupture with Europe, but a mandate boosting our negotiating strength for reaching a sustainable deal,” Tsipras said. “The people today replied to the right question. They did not answer to the question in or out of the euro. This question needs to be taken out of the discussion, once and for all.”
European observers say, however, it’s now likely Greece will be forced into bankruptcy and removal from the Euro. A possible expulsion from the European Union is now on the table.
Markets across the country saw tumbles due to the Greek rejection of the referendum. The only market that did not show a massive decline was China, because the Chinese government dumped a massive stimulus into the economy.
Major rallies are being scheduled in Greece today ahead of a referendum Sunday on a proposal for the country’s debt that is not even on the table.
The country has already defaulted on a loan from the International Monetary Fund (IMF) and European Union (EU) officials are warning that a no vote from the Greek citizens on Sunday could mean the country’s exit from the Euro. Economists say such a result would cause ripple effects throughout the world economy.
Greek voters, however, are very confused by the referendum.
“No one is really telling us what it means,” said Erika Papamichalopoulou, 27, a resident of Athens, told the New York Times. “No one is saying what will happen to us if we say yes, or what will happen to us if we say no.”
Banks in the nation remain closed ahead of the Sunday vote.
Prime Minister Alexis Tsipras appeared to take steps Wednesday to accept many of the demands of the nation’s creditors but has also been telling citizens to vote down the referendum on the deal.
European leaders are pointing out that Sunday’s vote is revolving around a deal that is no longer on the table because the framework was built around a bailout package that was revoked on Tuesday.
The IMF surprised many on Thursday when it called for more aid and debt relief for Greece. The IMF says the Greek situation has significantly deteriorated because of conflict with creditors and calls for European leaders to be more generous financially toward Greece.
Greece has submitted an 11th hour proposal for debt restructuring that includes a two-year aid proposal.
The statement came hours before Greece’s default on a loan to the International Monetary Fund. The proposal would require another bailout for Greece from the Eurozone’s European Stability Mechanism (ESM), a $560 million dollar rescue fund.
Athens has until 5 p.m. Tuesday to make a $1.8 billion dollar repayment to the European Central Bank before they are in default.
German Chancellor Angela Merkel seemed to be very cool toward Greece’s new proposal. Germany is Greece’s biggest creditor.
“This evening at exactly midnight Central European Time the program expires. And I am not aware of any real indications of anything else,” she told a news conference.
Several european leaders began to express concern that Greece may be forced out of the Euro by their default and the impact it could have on the Euro, the EU and the region.
“What would happen if Greece came out of the euro? There would be a negative message that euro membership is reversible,” said Spanish Prime Minister Mariano Rajoy to Reuters.
“People may think that if one country can leave the euro, others could do so in the future.”
European Union financial experts say that if Greece’s voters reject a referendum on the nation’s debt this Sunday it would mean the nation leaves the Euro.
Greece shut down the nation’s banks on Monday after a weekend run on ATMs caused many to run out of cash. A strict limit on ATM transactions has been put in place by the government through Thursday.
The shut down of banks and the stock markets in the nation will last at least through the Sunday vote.
Greek leadership was defiant in the fact of default and the EU no longer providing bailout funds to the nation.
“The decision not to prolong financial aid to Greece is offensive, and it’s a disgrace for Europe in general,” Greek Prime Minister Alexis Tsipras said in a national address.
The country’s poorer neighbors, however, are showing little sympathy for Greece’s plight.
“We are much poorer than the Greeks but we have performed reforms,” Rosen Plevneliev, the president of Bulgaria said. “When you have a problem, you have to address it and not shift it to Brussels or onto somebody else.”
The country’s actions have carried negative impact on world financial markets. World stock markets all took sharp dives at their openings which carried throughout the day; the euro tumbled on world currency markets.
U.S. officials are watching the economic situation in Greece with concern that it might lead to a situation where Russia could gain influence over a NATO member.
Greece, on the verge of bankruptcy, has been struggling with members of the European Union regarding debts and loans to cover costs. If Greece defaults, Russia could swoop in with economic help and turn that nation against the West.
“You can easily see how geopolitically this would be a gift to Russia,” says Sebastian Mallaby at the Council on Foreign Relations. “You do not want Europe to have to deal with a Greece that is a member of NATO but which all of a sudden hates the West and is cozying up to Russia.”
President Obama and his administration have been quietly talking with German leaders about getting the EU to resolve the standoff with Greece. Apparently the EU’s issues with Ukraine have factored into the Greece discussions.
The Greek prime minister traveled to Russia last week to meet with Russian president Putin.
Russia has been working to weaken the EU’s support for sanctions which require all 28 member nations to approve before going into effect. If Greece remains in the EU but receives major support from Russia, they could block further sanctions.
“We still believe that Europe remains united against Russia and what they’re doing,” says John Kirby, state department spokesman, when asked about the potential impact of a Greek default.
“I think coming out of the G7 you saw a lot of unity in Europe for continued sanctions against Russia and the possibility for increased sanctions to further isolate Russia.”
A magnitude 5.2 earthquake struck southern France Monday according to the French National Seismic Monitoring Network.
The quake was located near the resort city of Nice and was only 7 miles deep. A local seismic expert said that the quake should be seen as a “warning” to France.
“We don’t know when a big one will come, but it will and there will certainly be fatalities,” Remy Bossu of the European Mediterranean Seismological Center told a French newspaper. “In Italy or Greece everyone is fully aware of the risks simply because earthquakes happen more often. Everyone knows about them and it’s part of their culture, but not in France.”
Monday’s quake, which lasted 15 seconds, reportedly only caused minor damage to buildings throughout the region. Seismologists say a quake of this nature strikes France only one every 30 years.
The quake was the second surprise quake to strike France in the last six months. In November, a 4.5 magnitude quake struck in northwest France near Brittany.
A major earthquake struck western Greece on Sunday afternoon.
According to the U.S. Geological Survey, a magnitude 6.0 earthquake struck around 3:55 p.m. local time. The quake was centered about 12 miles below the town Lixouri on the island of Kefalonia. At least a dozen aftershocks of 3.5 or higher on the Richter scale have continued to shake the region.
Officials say that no one was killed in the quake but that many suffered minor to moderate injuries from objects falling in their homes. Some roads and highways had to be closed for cracked pavement or large rocks from landslides caused by the quake.
Local Greek websites are showing pictures of moderate to severe damage to old buildings around the epicenter of the quake. Residents of the areas closest to the epicenter were told by government officials to abandon damaged buildings overnight in the event of major aftershocks.
