By Paul Vigna, Wall Street Journal
The last thing an already nosediving market needed was this: IMF to Suspend Greek Aid Unless Euro Zone Resolves Shortfall in Rescue Package – FT
The FT is reporting that the IMF warned it would suspend aid payments by the end of next month, unless a shortfall in Greece’s bailout program was filled by euro-zone leaders.
The details are all a bit murky, but it doesn’t matter given the market’s mood today. With investors already dealing with the eventual QE taper, as well as a cash crunch in China, the last thing they need is to be reminded of the euro zone’s still-not-quite-over crisis.
The major indexes are all down more than 2%. The Dow took another dog-leg down, and is currently off nearly 350 points. The S&P 500 is down 37 points at 1589. The 1600-1598 level was seen as a key technical marker, falling below it wasn’t appreciated.
If the Dow’s losses hold around these levels, it would be the biggest sell-off in 2013.
The yield on the U.S. 10-year Treasury note is at 2.42%. Commodities are also substantially lower. WTI crude is off 3.5% at $95.05/barrel, and gold is off 6.6% at $1,283/ounce.
