If you’re looking in the United States market, or markets around the world at the moment, what you’re seeing is a sea of red; and the same goes for other nations around the world. Investors are eagerly anticipating the final result of the negotiations between the EU and Greece with regard to a Greek bailout. Today, we’ll talk about why negotiations aren’t likely to yield positive results, the stocks that are taking some of the biggest hits in US markets today, and what we can expect to see throughout the rest of the week.
Why Negotiations Greek/EU Negotiations Aren’t Likely To Yield Positive Results
Unfortunately, this isn’t the first we’ve heard of this negotiation. As a matter of fact, it’s been going on for quite some time now. Believe it or not, the bottom line of the negotiation has very little to do with finance and more to do with politics. The proposition offered by Greece meets many of the financial requirements the EU wants to see, but meets them in the wrong way as far as the EU is considered. Ultimately, the entire negotiation boils down to taxation. The EU wants Greece to raise taxes on consumers in order to pay its debtors. However, the country’s prime minister, Alexis Tsipras, simply can’t do that. If he did, it would go against his promises to consumers that got him in office in the first place. In the end of the day, neither side wants to budge; so, chances are, we’re not going to see a positive result from the negotiations.
The Stock Market Is Taking A Hit
Considering the fact that Greece has until tomorrow to pay its debtors or default, investors are preparing for the worst; as they should. As mentioned above, markets around the world look like a sea of red! Ultimately, if Greece does default it will have no choice but to exit the Euro; weakening the Euro as a whole. This will likely have a worldwide economic impact. With that said, here are some of the stocks that are taking the brunt of the hit in the market today…
Technology’s Biggest Loss – 5.95% – LinkedIn Corp (NYSE: LNKD)
A quick search on Google News yielded no negative press about LinkedIn; however, LNKD is currently (3:36) down 5.95% and is continuing it’s slow and steady decline to the bottom. Because there is no asset specific negative news revolving around LNKD, one can determine that declines are directly related to the Greek crisis. Therefore, we’re likely to see this stock climb in value once the Greek turmoil dials down.
Healthcare’s Biggest Loss – 15.02% – CorMedix Inc. (NYSEMKT: CRMD)
Today’s biggest loser in biotech is CorMedix. However, the 15.02% declines we’ve seen so far today from the stock can’t all be blamed on the Greek crisis. In fact, the company has gotten quite a bit of bad press recently regarding their poor management and failed partnership attempts. So, the fears over a Greek default simply exacerbate the underlying issues with the stock. With that said, I’m not expecting to see much of a recovery here any time soon.
Service’s Biggest Loss – 16.47% – Gannett Co., Inc. (NYSE: GCI)
Finally, Gannett stock is having a horrible day in the market; making it the service sector’s biggest loser. Currently down more than 16%, GCI has been falling all day. However, like LNKD, a quick search of Google news yielded no negative results. In fact, there was positive news as an analyst recently initiated coverage on the stock. So, this is another one that I’m expecting to see bounce back.
What Do You Think?
Have you found any other stocks with bigger losses today? What do you think about the Greek crisis? Will negotiations yield positive results? Let us know your opinions in the comments below!