Hello friends and Fortune readers.
Wall Street stock futures are opening flat as markets await the latest instalment of the Greek drama. But China’s stocks had another bad day, and the rout in Shanghai and Shenzhen is pushing commodity prices sharply lower as fears for the Chinese economy mount.
Today’s must-read story is from Fortune‘s Shawn Tully and it looks at why Greece’s “no” vote in the weekend bailout referendum will make it that much more difficult for Greek leaders to strike a deal with the troubled country’s euro zone creditors.
Here’s what else you need to know today.
1. Eurozone meetings
Euro zone leaders will meet today in Brussels to discuss how to proceed in the wake of the Greek “no” vote over the weekend rejected a proposed bailout deal. The meeting represents the Eurogroup’s last-ditch effort to reach a new bailout agreement with Greece that would cut off the possibility of the troubled country exiting the euro zone. The Greek government said on Monday that Prime Minister Alexis Tsipras will present a new proposal from the Greek side after more than 60% of the country’s voters balked at the strict austerity measures contained within the latest proposal submitted by Greece’s euro zone creditors.
2. China’s stock bubble
China’s stock market fell another 1.3% as the bubble in equity markets continues to deflate. Over a quarter of the listed stocks in Shanghai and Shenzhen have had their shares suspended at some time since the start of the month, as retail investors scramble to get out of often highly leveraged positions. Oil has hit a three-month low of $52.67 a barrel, while copper has hit a new six-year low as commodity traders take fright at the possible consequences for the Chinese economy.
3. International trade
The U.S. Commerce Department releases the most recent international trade data today. The government report is expected to show the trade gap expanding to $42.6 billion in May from the previous month’s $40.9 billion deficit. The wider gap came as imports to the U.S. increased while the strong U.S. dollar weighed down foreign demand for domestic goods.
4. The Container Store earnings
The storage products company reports first-quarter results this afternoon. The Container Store is expected to post an earnings loss for the quarter with sales that were roughly flat. The company, which has been public for less than two years, has seen its share price tumble more than 35% over the past year, thanks to a string of disappointing quarterly reports.
5. Nuclear talks
Tonight marks the self-imposed deadline for talks between Western officials and the Iranian foreign minister as they attempt to reach a deal to roll back Iran’s nuclear program. The talks — which also include foreign ministers from Western powers Britain, China, France, Germany, Russia, and the U.S. — hit a snag on Monday when Iran demanded that United Nations sanctions on the country’s ballistic missile program be lifted.
— Reuters contributed to this report.
