Stocks and oil drop on concerns about Greece, China

Mon Jul 6, 2015 4:53pm EDT
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By Noel Randewich

SAN FRANCISCO (Reuters) - Equity markets around the world fell on Monday and U.S. oil prices tumbled 7 percent after Greece overwhelmingly voted against conditions for a rescue package and following unprecedented measures in China to staunch recent massive losses in its stock markets.

Wall Street shares fell less than some had feared. The International Monetary Fund reassured investors by saying it was ready to help Greece if asked to do so. European shares fell around 2 percent, a relatively muted reaction to the Greek vote.

Beijing introduced emergency measures over the weekend following a 30 percent slide in its stock market since mid-June, raising investors' concerns about the stability of the world's second-biggest economy.

Wall Street investors took heart after Greece's outspoken finance minister, Yanis Varoufakis, stepped down and Prime Minister Alexis Tsipras said his government was ready to return to negotiations with creditors in a bid to open shuttered banks.

"After the initial knee-jerk reaction, the majority opinion is that there is still a possibility of some sort of a deal that keeps Greece in the euro zone," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

The Dow Jones industrial average .DJI fell 46.53 points, or 0.26 percent, to end at 17,683.58. The S&P 500 .SPX lost 8.02 points, or 0.39 percent, to 2,068.76, and the Nasdaq Composite .IXIC dropped 17.27 points, or 0.34 percent, to 4,991.94.

TUESDAY SUMMIT   Continued...

Traders work on the floor of the New York Stock Exchange July 6, 2015. REUTERS/Brendan McDermid