Stocks Crater on Greece Fears

The S&P 500 Index fell 43.85 on Monday,down 2.09%,on worries that Greece might leave the Euro-zone,or might at least cause unfortunate ripple effects throughout the global economy.The country is expected to miss a Tuesday debt payment of 1.84 billion dollars to the IMF.Technically,that would not be a default,since the IMF payment does not have the status of a bond coupon payment,for instance.Still,it is plenty bad for the stock market,as is the unknown endpoint of Greece's tortured negotiations with its creditors,and the Sunday referendum basically on whether Greece should abandon the euro for its old currency,the drachma.
The run on Greek banks could become contagious,spreading to Spain,Portugal and even Italy.If that happens,the US economy,with its close ties to Europe,could suffer as well.
The market was shaken by S&P's opinion that the probability of the so-called Grexit is 50%,and a commercial default is inevitable within six months.Greece's credit rating was also lowered by S&P to CCC-.
Investors sought refuge in gold,which rose 0.52%,while Treasury bonds were basically flat and utility stocks fell less than the broader market.*
Utilities Select Sector SPDR ETF (XLU),Market Vectors Gold Miners ETF (GDX),SPDR Gold Trust (GLD),iShares 7-10 Year Treasury Bond ETF (IEF)

Monday Newsline:Portugal's Better;China PMI;Langer Wins

Portugal will end its three-year,78 billion euro bailout from the EU and IMF on May 17,as it says it has financial reserves for one year and no longer needs an emergency line of credit.Portugal's exports and austerity measures have strengthened the economy to this level.The country's unemployment rate is at 15.3% and its debt to GDP is 129%.*
Australian bank Westpac showed a profit increase of 8%,while ANZ Bank's profit rose 11%.Westpac said the improvement was due to loan growth and wealth management fees.*
China National Nuclear Corporation is to be publicly listed in Shanghai.The IPO aims to raise 2.6 billion dollars.CNNC is China's second largest nuclear plant operator.*
The HSBC China Manufacturing PMI came in at 48.1,the fourth straight monthly decline.Below 50 indicates contraction in the sector.Deflationary pressure is still there in China,said Yao Wei,China economist at Societe Generale.We think the economy will remain relatively weak.A hard landing for China would be 5% growth.It's all about reform at the end of the day,Ms.Wei noted.*
Most Asian markets were lower Monday on the contraction of Chinese manufacturing.US stock futures were also lower on fears that the Ukraine crisis is getting out of hand,with large demonstrations and a deadly fire in Odessa,while the price of safe haven gold rose.*
In Champions Tour golf,German Bernhard Langer won the Insperity Invitational at The Woodlands,Texas by one stroke.It was his third win at the tournament,and with it he consolidated his lead in the Charles Schwab Cup standings.American Fred Couples took second,and Colin Montgomerie of Scotland came in third.

Asia This Day:Typhoon Haiyan;Hong Kong Home Prices;Portuguese Visa Program

The Philippines Red Cross has 30 workers out with chain saws to clear debris from Typhoon Haiyan,said Chairman and CEO Richard Gordon,who is also a Filipino senator.Still,there is a feeling of desperation.They've lost family members.They're hungry.Their children are hungry.
The worst typhoon in history,Haiyan devastated homes,schools and entire communities.Meteorologists are discussing extending the current five level scale of tropical storms to six categories,on account of the oceans heating up and producing such record storms.*
The Chinese government has increased minimum down payments for high end Hong Kong property to 50%.This has had their intended effect of slowing price appreciation,while hindering even buyers with excellent credit from purchasing dream homes in the territory.
Prices of homes worth more than 10 million dollars Hong Kong are expected to drop 3% in Q4,said broker Cushman&Wakefield.Speculators have been driven off by the decline,but lower end buyers have been aided by steadying prices in their range.From 2003-12,Honk Kong luxury property went up 250%,the highest prices in the world.While the upper end growth will by around 5% in the second half of 2013,the mass market will hold steady.
The Hang Seng Property Index of Hong Kong's biggest developers has dropped 6.4% so far this year.Developers will probably respond by recalibrating their strategies by looking more to lower end projects.*
Chinese nationals are at the top of a Portuguese program to grant residency visas to foreign buyers of property worth a minimum of 500,000 euros,or around 670,000 dollars.Of the 318 of the visas granted in the past year,248 went to Chinese citizens,while Russians got 15,and Angolans and Brazilians 9 each.This has meant a decisive stimulus to the real estate market's recovery,said Foreign Ministry spokeswoman Francisca Seabra.*
In golf,Taiwan's Teresa Lu,25,won the Mizuno Classic at the Kintetsu Kashikojima Country Club in Shima,Japan on Sunday.It was her first career victory,after having been in two playoffs earlier in the year.She said she will probably return to the LPGA Tour next season now,after having left it in 2010 and concentrated on the Japan LPGA Tour.*
Adam Scott won the Australian PGA Championship with a 14 under par 67 at Royal Pines in Gold Coast,Australia.He joins five others as the only Australians to have won all three Australian majors.American Ricky Fowler was second.*
Update:This catastrophe humbles us-all of us,said Father Butch Rivera,a Philippines priest in whose home typhoon victims took refuge.I'm thinking what I can do for these people,what I can give them,the man of faith wondered.He's been consoling them.

Shop Talk

I advertised in Portugal this week.A special greeting to you,dear NATO allies.I have added a new link to my list.It is Since 1910.com,a merchant of fine diamonds and diamond jewelry,listed as Diamonds and diamond jewelry.In the U.S. and Canada,it is Labor Day weekend.Have an informative holiday.Monday will be a good chance to study the overseas markets.