Bear Radar

Style Underperformer:

• Mid-Cap Growth -1.52%

Sector Underperformers:

• 1) Alt Energy -3.22% 2) I-Banks -2.52% 3) Steel -2.43%

Stocks Falling on Unusual Volume:

• AGO, VTAE, ORC, E, BPOP, VTWO, DEO, AMBC, GDOT, CUK, FRME, CCC, CBT, GCI, MEI, SMLP, TRS, CMCM, FMO, KNOP, TUBE, VDSI, IHG, EUFN, AZN, NSM, TAL, SRPT, XOOM and OFG

Stocks With Unusual Put Option Activity:

• 1) XLB 2) LOW 3) GT 4) DHI 5) CCL
  

Stocks With Most Negative News Mentions:

• 1) M 2) QCOM 3) MU 4) BPOP 5) BK
  

Charts:

• ETFs Falling on Unusual Volume

• Stocks Falling on Unusual Volume

Bull Radar

Style Outperformer:

• Small-Cap Value -1.13%

Sector Outperformers:

• 1) Utilities +.53% 2) Hospitals +.03% 3) REITs -.32%
  

Stocks Rising on Unusual Volume:

• PETX, APH and ALDR

Stocks With Unusual Call Option Activity:

• 1) JOE 2) SLCA 3) HCA 4) MBI 5) ARLP
  

Stocks With Most Positive News Mentions:

• 1) TGNA 2) CHK 3) IMKTA 4) BDX 5) LPNT
  

Charts:

• ETFs Rising on Unusual Volume 

• Stocks Rising on Unusual Volume

Morning Market Internals

NYSE Composite Index:

• Volume Running 5.4% Above 100-day average
• 1 Sector Rising, 9 Sectors Declining
• 16.4% of Issues Advancing, 81.8% Declining
• 15 New 52-Week Highs, 228 New Lows
• 49.4% of Issues Above 200-day Moving Average
• Average 14-Day RSI 42.5
• Vix 16.7
• Total Put/Call 1.24
• TRIN/Arms .96

Monday Watch

Today's Headlines 

Bloomberg: 

• Greece Shuts Banks to Avert Collapse After ECB Freezes Support. Greece will shut its banks Monday to avert a financial collapse after the European Central Bank froze emergency loans to the nation’s lenders. Piraeus Bank SA Chief Executive Officer Anthimos Thomopoulos disclosed the decision to reporters after a meeting of the government’s financial-stability panel on Sunday. As he left the same session, Finance Minister Yanis Varoufakis said an announcement would be made after a Cabinet meeting due to start imminently in Athens. Banks will remain shut until at least after a July 5 referendum called by Prime Minister Alexis Tsipras on whether to accept austerity in exchange for a European bailout, Kathemerini newspaper reported, citing unnamed sources.

• Euro Faces Existential Threat as Greece’s Membership in Jeopardy. Three years after Mario Draghi pledged to do whatever it took to save the euro, the breakdown in the Greek rescue talks is calling into question the integrity of the entire currency union. While Greece accounts for less than 2 percent of the euro zone’s output, its exit would hurl the bloc into unknown territory by setting a precedent for other nations to reconsider membership. The euro dropped 1.4 percent to $1.1011 as of 5:44 a.m. in Tokyo on Monday.

• IMF Won’t Help Greece If Payment Missed, Lagarde Says. International Monetary Fund officials, stung by the breakdown of negotiations over a new European bailout package for Greece, won’t provide further aid if the Greeks miss a payment due to the IMF on June 30, Managing Director Christine Lagarde said. Lagarde, in an interview with the BBC, also said a referendum scheduled in Greece for July 5 will be asking voters to weigh creditors’ proposals that are no longer under consideration. 

• El-Erian Sees 85% Grexit Odds With ‘Massive’ Contraction Coming. Greece is heading for a “massive economic contraction” and is likely to be forced out of the euro zone, according to Mohamed El-Erian, the former chief executive at Pacific Investment Management Co.

• Closing Greek Stock Exchange Puts Focus on ETFs Without Prices. Shutting down the Greek market has trained attention on exchange-traded funds tracking its stocks, adding an element of speculation to their prices as long as the Athens bourse is closed. In the U.S., owners of the Global X FTSE Greece 20 ETF will have less information in deciding how much the security is worth, while in Europe the Lyxor ETF FTSE Athex 20 may see added volatility.

• Hidden Debt Risks Rise as Chinese Developers Scrap Bond Promises. China’s developers are scrapping safeguards written into their bonds, sparking concern that they are attempting to hide rising debt loads after a landmark default. Five developers this year have loosened or are trying to relax financing limits and make it easier to enter joint ventures that can move liabilities off their balance sheets. That’s up from three in the same period of 2014. Junk-rated issuers including Agile Property Holdings Ltd. and Modern Land China Co. have sought to trim protections for overseas investors, dragging them to the weakest since 2011, according to Moody’s Investors Service.

• The $8 Trillion Penny Stock: China’s Market of Boom-Bust-Repeat. It looks like the price chart of an over-the-counter penny stock: dizzying gains, abrupt U-turns, harrowing declines. But this is no obscure security from the rough-and-tumble fringes of Wall Street. It’s China’s Shanghai Composite Index, the yardstick for an $8.1 trillion equity market -- the world’s largest after the U.S. -- where extreme volatility is becoming the norm. Fueled by record amounts of borrowed money and the whims of more than 80 million individual investors, swings in the Shanghai Composite have climbed to the highest levels since 2008. They’re bigger than every other benchmark index worldwide after Greece, along with a quarter of the 100 most-traded penny stocks on U.S. bourses, according to data compiled by Bloomberg. “You’d think you wouldn’t see this volatility in such a large equity benchmark,” Ankur Patel, the chief investment officer at R-Squared Macro Management LLC, said by phone from Birmingham, Alabama. “The flows in and out have been so substantial and it’s been driven by retail investors. Those are the same characteristics you see in penny stocks.”

• China’s Auditor Says State Firms Falsified Revenue and Profit. Some of China’s biggest state firms were found to have falsified revenue and profits, while some state lenders doled out loans to unqualified borrowers, the nation’s auditor said amid an intensifying crackdown on corruption. Fourteen state-owned companies, including State Grid Corp., Cosco Group and China Southern Power Grid Co., falsified 29.8 billion yuan ($4.8 billion) in revenue and 19.4 billion yuan in profits, the National Audit Office said in a statement on its website Sunday. The office issued its 2014 work report Sunday, along with several statements and audit reports for individual companies.

• Japan Industrial Production Slumps in May, Denting Recovery. Japan’s industrial production dropped more than forecast in May, sapping a recovery in the world’s third-largest economy. Output fell 2.2 percent from April, when it increased 1.2 percent, the trade ministry said on Monday. Economists had forecast a 0.8 percent decline.

• BIS Warns of Increasing Risk of Liquidity Trap in Bond Markets. Global bond markets face the risk of a “liquidity illusion” because holdings are becoming concentrated in the hands of fund managers, according to the Bank for International Settlements. The top 20 managers account for 40 percent of all assets as dealers reduce inventories, BIS economists wrote in their annual report. Assets under management more than doubled in about a decade to $75 trillion in 2013. Investors are becoming more influential in credit markets as banks reduce bond holdings to meet regulations introduced since the financial crisis. That shift is making markets more homogeneous, increasing the risk that liquidity will vanish in a selloff. 

• Treasuries Surge With Aussie, Japanese Bonds Amid Greece Turmoil. The benchmark Treasury 10-year yield dropped 15 basis points to 2.32 percent as of 11:54 a.m. in Tokyo, Bloomberg Bond Trader data show. The 2.125 percent note due in May 2025 climbed 1 10/32 to 98 9/32. Yields on similar-maturity Australian notes dropped 11 basis points to 2.95 percent and those on Japanese securities of the same tenor declined three basis points to 0.44 percent.

• Leu, Forint Lead Emerging Currencies Lower on Greece Turmoil. Emerging-market currencies fell the most in a month as demand for riskier assets weakened amid concern Greece’s possible exit from the euro zone will lead to contagion. A Bloomberg gauge of the most-traded developing-nation currencies declined 0.6 percent as of 11 a.m. in Hong Kong, set for its lowest close since March 19.

• Mideast Stocks Sink on Fear Attacks May Spread in Gulf Nations. Stocks in Dubai, the Middle East’s commercial hub, led regional declines on concern militants could target other Arab Gulf nations after Kuwait’s deadliest attack in decades killed 27 people. The DFM General Index dropped 2.2 percent, the most since June 11, to 4,055.97 at the 2 p.m. close in the emirate. Kuwait’s SE Price Index slipped 0.2 percent to the lowest since December. More than 200 people were wounded when a bomb ripped through a Shiite mosque in the country, which shares borders with Iraq and Saudi Arabia. 

• China’s Stocks Extend Rout as Shanghai Index Set for Bear Market. China’s stocks sank in volatile trade, with the benchmark index poised to enter a bear market, as an interest-rate cut over the weekend failed to stem the biggest nation’s rout since 1996. The Shanghai Composite Index tumbled 3.8 percent to 4,035.48 at the morning break, taking declines from its June 12 peak to more than 20 percent. A gauge of technology stocks sank 8 percent Monday to lead declines among industry groups. The Shanghai index’s 10-day volatility reading jumped to the highest level since 2008. The Shenzhen Composite Index tumbled 5.9 percent to its lowest level since May 8, taking its three-day loss to 17 percent. The Hang Seng China Enterprises Index dropped 3.1 percent at 11:31 a.m. local time, and the Hang Seng Index fell 2.4 percent.

• Asian Stocks Fall as Greece Fears Spur Flight to Safer Assets. Asian stocks tumbled as investors sought shelter in haven assets while they weighed a possible Greek exit from the euro zone. Shares in Shanghai sank even after the central bank cut interest rates. Japan’s Topix index dropped 1.7 percent as the yen jumped 0.8 percent against the dollar and 2.1 percent versus the euro. The MSCI Asia Pacific Index lost 1.6 percent to 145.43 as of 11:37 a.m. in Hong Kong, as more than 20 shares fell for each that rose. The Shanghai Composite Index slumped 3.8 percent after earlier rising 2.5 percent.

• Iron Seen Below $40 by Capital Economics on Sharp Move Down. Iron ore may tumble into the $30s a metric ton in the second half as surging low-cost supplies from the world’s biggest producers swamp the market, expanding a glut, according to Capital Economics Ltd. The surplus will become more evident in the next six months, Caroline Bain, senior commodities economist in London, said in an interview. Higher volumes from Australia and Brazil will spur the renewed slump even as stimulus spending in China boosts steel demand, Bain said, forecasting that the raw material will end the year at $45.

• Gold Climbs on Haven Demand as Greece Risks Exit From Euro Zone. Gold rose with silver as Greece shut banks and imposed capital controls, boosting demand for haven assets amid concern that the country’s euro membership is in jeopardy. Bullion for immediate delivery rallied as much as 1.1 percent to $1,188.23 an ounce and was at $1,182.76 at 11:07 a.m. in Singapore, according to Bloomberg generic pricing. Gold for August delivery jumped 1.2 percent to $1,187.60 on the Comex and traded at $1,181.50.

• Fed’s Dudley Says September Rate Rise Possible After Better Data. The Federal Reserve could begin raising interest rates in September if economic data continue to improve as they have in recent weeks, said William C. Dudley, president of the Federal Reserve Bank of New York. “If the data continue to evolve in the way they have, I think September is very much in play,” Dudley said in an interview with the Financial Times conducted on Friday and published Sunday.

Wall Street Journal: 

• Iran Wish List Led to U.S. Talks. Years of clandestine exchanges between the two countries helped build a foundation for nuclear negotiations. Iran secretly passed to the White House beginning in late 2009 the names of prisoners it wanted released from U.S. custody, part of a wish list to test President Barack Obama’s commitment to improving ties and a move that set off years of clandestine dispatches that helped open the door to nuclear negotiations. The secret messages, via an envoy sent by the Sultan of Oman, also included a request to... 

• Assad Chemical Threat Mounts. U.S. officials see strong possibility of chemical attacks if rebels threaten Syrian regime strongholds. U.S. intelligence agencies believe there is a strong possibility the Assad regime will use chemical weapons on a large scale as part of a last-ditch effort to protect key Syrian government strongholds if Islamist fighters and other rebels try to overrun them, U.S. officials said. Analysts and policy makers have been poring over all available intelligence hoping to determine what types of chemical weapons the regime might be able to...

• Repairing the ObamaCare Wreckage. The King v. Burwell ruling aside, the fact remains that premiums are skyrocketing and choices are shrinking. Ironically, it is the growing government centralization of health insurance at the expense of private insurance that must be addressed. The 107 million people on Medicaid or Medicare in 2013 will increase to 135 million by...

Fox News: 

• Calls grow for probe of Clinton's private server. (video) Calls for Hillary Clinton to allow a third party to examine her private server grew louder Friday following revelations that she had withheld more than a dozen Benghazi-related emails from the State Department. "Secretary Clinton's failure to turn over all Benghazi and Libya documents is the reason why we have been calling for an independent, third party review of her server," Rep. Lynn Westmoreland, R-Ga., a member of the House Select Committee on Benghazi, told the Washington Examiner.

CNBC:

• Greece Live Blog: Markets rocked as key vote looms.

Zero Hedge:

• Ignoring Tsipras Plea For Calm, Greeks Storm ATMs, Stores, Gas Stations. (pic)

• Greek Capital Controls Begin: Greek Banks, Stock Market Will Not Open On Monday.

• Dow Futures Open Down 300 Points, 10Y Yield Tumbles 20bps As EURUSD Plunges Over 200 Pips. (graph)

• "Contained" Greek Contagion Smashes Japanese Banks Lower. (graph)

• Pension Funds Are "Compromising Their Solvency" OECD Warns. (graph)

• The Greek Butterfly Effect.

• Goldman Explains Who Gets Stuck With The Bill When Greece Leaves The Party.

• China Jumps On PBOC Hail Mary, Then Plunges Into Bear Market. (graph)

• Here Comes "Prexit": Puerto Rico In "Death Spiral", Debts Are "Not Payable", Governor Refuses To "Kick The Can".

• Collapsing CDS Market Will Lead To Global Bond Market Margin Call.

• A Helpless China Tips Its Hand: A Market Crash "Poses Great Danger To Social Stability".

• "Artificial" Phantom Liquidity Will Disappear In "Adverse, Turbulent" Markets, BIS Warns. (graph)

• What Bull Market? 42% Of Stocks Are In Correction. (graph)

• Greek Parliament Votes In Favor Of Referendum.

• IMF Confirms Greek Referendum "Irrelevant" After Program Expires On Tuesday.

Business Insider:

• European stock futures are getting obliterated. (graph)

• CNN spots 'ISIS flag' at gay pride parade and summons national security analyst... (video)

• Terror on the beach: Tourists recount the horrors of Tunisia attack that left dozens dead.

• REPORT: Greece's stock market will be closed for at least a week.

• SpaceX's 'reusable rocket' just exploded to bits — but the company says it's going to push forward anyway.

Reuters:

• RPT-Sydney's crazy housing market no mere craze. Outlandish property prices make daily headlines in Sydney - a peeling 1900s three-bed with no kitchen sink for A$2.6 million ($2 million), a parking space in Kirribili for A$120,000 - and first-time buyers have little prospect of relief. Home price growth in the harbour city is well into the double digits, fed by record low interest rates, a rapidly rising population, chronic undersupply, a tax system that pampers property investors and a stream of Asian money.

• China's easing may prop up stocks, but risks rewarding speculators. "The government appears eager to maintain a bull market to expand the capital market and reduce reliance on bank lending," wrote Standard Chartered economists in reaction to the cuts. "Although the use of monetary policy for that purpose is questionable."

Financial Times:

• Low rates hold back global growth, BIS warns. Ultra-low interest rates hold back global growth and fuel instability, the Bank for International Settlements has warned, as it urged central banks to move more swiftly towards normalising monetary policy. The BIS said in its annual report that monetary authorities from the US to Japan had been handed too much responsibility to steer the global recovery and that much more of the weight had to fall on governments, which were failing to pass vital structural reforms.

• US shale equity sales slow. Share sales by US oil and gas companies have slowed sharply in recent months, in a sign of the tightening financial pressures on the industry following the fall in crude prices.

Telegraph:

• The latest and breaking news from Greece. 

• The world is defenceless against the next financial crisis, warns BIS. Monetary policymakers have run out of room to fight the next crisis with interest rates unable to go lower, the BIS warns. The world will be unable to fight the next global financial crash as central banks have used up their ammunition trying to tackle the last crises, the Bank of International Settlements has warned. The so-called central bank of central banks launched a scatching critique of global monetary policy in its annual report. The BIS claimed that central banks have backed themselves into a corner after repeatedly cutting interest rates to shore up their economies.

Sueddeutsche Zeitung:

• Greece Won't Get Better Deal After Referendum. Greece won't be offered a better deal after the referendum scheduled for July 5, citing German Vice-Chancellor Sigmar Garbriel in an interview. Gabriel says he was "appalled" that Greeks rejected a very far-reaching offer than included a third bailout program and debt restructuring. "Mr. Tsipras wants to accept all these offeres only if Europe doesn't link them to any conditions for reforms in Greece. Europe won't be able to accept this even after a referendum," he said.

ORF TV:

• ECB's Nowotny Sees Greece Missing June 30 Payment to IMF. Greek govt. will likely default on payment to IMF due June 30, ECB Governing Council member Ewald Nowotny said in an interview. No guarantee Greece won't leave euro, he said. Tourists visiting Greece should "stock up on cash, on euro cash," he said.

Leipziger Volkszeitung:

• Germany Faces EU80b Greek Default Loss, Lawmaker Says. German public coffers face a loss of at least EU80b from a Greek default, lawmaker Gunter Krichbaum, chairman of European Affairs Committee in lower house of parliament, says. German lawmakers may need to approve "humanitarian aid" because a Greek default may ignite unrest.

ADR Interview: 

• Germany's Steinmeier 'Dismayed' by Tsipras Moves. German Foreign Minister Frank-Walter Steinmeier says he's "somewhat dismayed" by recent policy steps take in Greece "and especially on the part of the prime minister." Greece faces risk of illiquidity and time is running out, he said.

La Stampa:

• OECD's Mann Says Markets Unprepared for Possible Grexit. Asked about "worst outcome" on Greece, OECD Chief Economist Catherine Mann says financial markets aren't prepared, according to an interview. Markets moving as if there were no risks, she said.

Night Trading

• Asian indices are -2.5% to -1.25% on average.

• Asia Ex-Japan Investment Grade CDS Index 117.0 +9.5 basis points.

• Asia Pacific Sovereign CDS Index n/a.

• S&P 500 futures -1.43%.

• NASDAQ 100 futures -1.43%.

Morning Preview Links

Earnings of Note

Company/Estimate 

• (APOL)/.47

Economic Releases

10:00 am EST

• Pending Home Sales for May are estimated to rise +1.4% versus a +3.4% gain in April.

10:30 am EST

• Dallas Fed Manufacturing Activity for June is estimated to rise to -16.0 versus -20.8 in May.

Upcoming Splits

• None of note

Other Potential Market Movers

• The German retail sales report could also impact trading today.

BOTTOM LINE: Asian indices are sharply lower, weighed down by industrial and financial shares in the region. I expect US stocks to open lower and to maintain losses into the afternoon. The Portfolio is 25% net long heading into the week.

Weekly Outlook

Wall St. Week Ahead by Reuters.
Weekly Economic Calendar by Briefing.com.

BOTTOM LINE: I expect US stocks to finish the week modestly lower on Greek debt deal concerns, Fed rate hike worries, global growth fears, European/Emerging Markets/US High-Yield debt angst, China bubble-bursting worries and earnings concerns. My intermediate-term trading indicators are giving neutral signals and the Portfolio is 25% net long heading into the week.

Today's Headlines

Bloomberg: 

• Euro-Area Finance Ministers Deny Greece Bailout Extension. Euro-area finance chiefs rejected a Greek request for an extension of the country’s bailout, piling more pressure on Prime Minister Alexis Tsipras’s government as lines formed outside ATMs in Greece amid public concern the financial system will go into meltdown. Jeroen Dijsselbloem, the Dutch finance minister who chairs meetings of the so-called Eurogroup, told reporters after a meeting in Brussels Saturday that his Greek colleague, Yanis Varoufakis, had requested a one-month extension. But with “no comprehensive package agreed” to by finance chiefs, the Greek government faces the expiry of its aid program on Tuesday night without any future financing in place.

• Door Closing to Greece as Finance Chiefs Scorn Referendum. Euro-area finance chiefs poured scorn on the Greek government’s decision to call a referendum on the terms of the country’s bailout and said the door was closing to any further discussion on resolving a standoff over aid. Finance chiefs from 18 euro nations said they would grill their Greek counterpart, Yanis Varoufakis, on what his government proposed after the sudden announcement of a referendum upended their work on the way forward for Greece. They are meeting in Brussels on Saturday hours after Prime Minister Alexis Tsipras called a July 5 ballot on whether Greece should accept the demands of the country’s creditors.

• Greeks Line Up at Banks and Drain ATMs as Tsipras Calls Vote. Two senior Greek retail bank executives said as many as 500 of the country’s more than 7,000 ATMs had run out of cash as of Saturday morning, and that some lenders may not be able to open on Monday unless there was an emergency liquidity injection from the Bank of Greece. A central bank spokesman said it was making efforts to supply money to the system. Some banks were placing limits in daily bank note and ATM transactions. Yiota Kardogianni, a manager at a branch of Piraeus Bank SA, said cash withdrawals were limited at 3,000 euros ($3,350) daily and ATM withdrawals at 600 euros. Alpha Bank AE had set a daily limit of 5,000 euros for most of its branches since last week.

• China Stocks Plunge Most Since 1996 as Bubble Warnings Rise. China’s stocks capped their steepest two-week plunge since December 1996 as investors who use borrowed money to buy equities cut holdings and concern grew that valuations were excessive. The Shanghai Composite Index sank 7.4 percent on Friday, taking its decline from its June 12 high to 19 percent, on the cusp of a bear market. Technology, industrial and material companies led declines in the two-week period, with Neusoft Corp., China Railway Construction Corp. and Hainan Mining Co. tumbling more than 30 percent.

• China Cuts Interest Rates to a Record Low After Stocks Slump. China’s central bank cut its benchmark lending rate to a record low and lowered reserve-requirement ratios for some lenders after stocks plunged and local government bond sales drained liquidity. In the fourth reduction since November, the one-year lending rate will be reduced by 25 basis points to 4.85 percent effective June 28, the People’s Bank of China said on its website Saturday. The one-year deposit rate will fall by 25 basis points to 2 percent, while reserve ratios for some lenders including city commercial and rural commercial banks will be cut by 50 basis points, according to the statement.

• Terror Acts Show Extremists’ Global Reach, Coalition Challenges. Terror attacks
  across three continents on Friday demonstrate Islamic State’s influence and wide reach, as well as the difficulties of countering its use of the Internet to galvanize and inspire global violence. Attacks in France, Tunisia and Kuwait left at least 65 dead, three days after a June 23 audio message by the group’s spokesman, Abu Mohammed al-Adnani, urging followers to make the Muslim holy month of Ramadan, being celebrated now, a time “of disasters for the infidels.”

• Treasury Yields Approaching Year High as Jobs Take Center Stage. Treasury bond investors seeking more clarity about when the Federal Reserve will raise interest rates may get more than they bargained for in next week’s employment report. Yields on the benchmark 10-year note are approaching the highest level of the year with economists forecasting another strong month of job gains. That has bond bears betting the data will give the Fed enough reason to raise its key lending rate before the end of the year.

MarketWatch.com: 

• Here’s why any Greek debt deal will amount to nothing.

Fox News: 

• Tourists flee Tunisa after deadly attack on beach resort.

CNBC:

• Worse than the Supremes: Obamacare economics.

ZeroHedge:

• Eurozone Rejects Greek Bailout Extension: All Bailout Programs Expire On June 30, Referendum Moot.

• EU Officials Unleash The Fearmongery: "The Crisis Has Commenced".

• FX Brokerages Move To "Close Only" Ahead Of Monday Open.

• "This Is A Sad Decision": Europe Responds To The Greek Referendum, Which Has One Massive Problem.

• Greek PM Who Was Fired For Referendum Bluff Tells Zero Hedge "It's Different This Time".

• It's 2 In The Morning And Greeks Are Lining Up At ATMs; Alpha Limits Online Banking. (pic)

• Thanks Michelle: Black Market In Food Items Springs Up In US Schools.

• Varoufakis: Creditor Proposal Offers "No Hope," Greece At "Historic Moment".

• Dijsselbloem Says Greek "Program" Will Expire On Tuesday Night, Offer Won't Exist At Referendum Time.

• A Desperate China Cuts Key Policy Rates After Stock Market Crash; "It's Just Like 1987".

• "Critical" Debt "Domino Chain" Threatens To Destabilize China's Financial System, SocGen Says. (graph)

• 5 Things To Ponder: While We Wait On Greece. (graph)

• America's Obamacare Nightmare Is Just Beginning.

• "Blood On The Streets" - Bonds Battered, Stocks Slammed As Greece Suddenly "Matters". (graph)

Business Insider:

• Battlefield setbacks aren't stopping ISIS from killing on a massive scale.

• ISIS is manufacturing weapons at an alarming rate.

• China is a 'bona fide financial bubble'.

Telegraph: 

• ‘Rats leaving a sinking ship’ as China’s equity bubble implodes. Margin lending and the stimulus that will never come spook China's stock markets into correction territory.

• Greece crisis live: creditors told the 'damage will be permanent' as bail-out extension refused. European finance ministers say they will not extend the country's bail-out deal on June 30 - a decison which could trigger a banking collapse within days. 

Euro am Sonntag:

• Greece Has 'No Plan' for Turnaround, Fuest Says. Govt doesn't have strategy to help Greek economy get back in shape, Clemens Fuest of ZEW says in an interview. Has diluted planned reforms; "very problematic". Greece needs to lower prices, wages to regain competitiveness. Forcing losses on debt via haircut won't work unless accompanied by reforms.