Before the bell: Markets sink as Greece talks collapse

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Jennifer Dowty, a Chartered Financial Analyst, writes exclusively for Globe Unlimited subscribers. The Before the Bell report is updated throughout the premarket to reflect latest developments.

Good Monday morning to you.  Greece is the word as the week is expected to begin in negative territory. Today's trading day is expected to open lower as no deal was reached this weekend between Greece and its creditors.

North American equity markets are pointing to a weaker open with futures lower this morning. There are two major overhangs in the markets right now.

First off, Greece is leaving investors wondering if and when we will see a resolution to its debt crisis. This uncertainty is plaguing the markets.

The second issue on investors minds surrounds the timing of an interest rate hike by the Fed.  On Wednesday, the Fed will be announcing an interest rate decision, and while most economists are not expecting a liftoff of rates at this week's meeting, the message conveyed by Fed Governor Janet Yellen, may give some indication as to whether a rate hike can be expected to be announced at the July or September meetings.

Both the International Monetary Fund and the World Bank recently urged the Fed governor to hold off on raising interest rates due to global economic concerns.

Many central banks around the world are cutting interest rates. Today, Russia's central bank trimmed rates. Later this week, the Bank of Japan is expected to issue a monetary policy statement. Central banks in New Zealand and South Korea cut rates last week.

Without clarity on these two issues, Greece and the Fed's interest rate decision, equity markets have lacked any positive momentum as investors lack any conviction and remain on the sidelines.

In North America, U.S. Industrial production was down 0.2 per cent in May , below expectations of 0.2-per-cent gain. April's industrial production was revised down to a 0.5-per-cent decline.

According to the Canadian Real Estate Association, Canadian home sales increased 3.1 per cent in May from the previous month, the fourth consecutive month-over-month increase.

At 10 a.m., the U.S. National Association of Homebuilders Housing Market Index for June will be released.

Overseas markets are lower. Asian markets closed down, and European markets are also in the red today with the Athens Stock Exchange General Index leading the decline, currently down nearly 5 per cent.

Now, here's the rundown on what's going on this morning.

MARKET DATA:

Futures
S&P 500 -0.5 per cent; Dow -0.5 per cent; Nasdaq -0.5 per cent

Equities
Hong Kong's Hang Seng -1.53 per cent
Shanghai composite index -2.00 per cent
Japan's Nikkei -0.09 per cent
London's FTSE 100 -0.96 per cent
Germany's DAX -1.96 per cent
France's CAC 40 -1.80 per cent
Stoxx 600 -1.64 per cent

Commodities
WTI crude oil (Nymex July) -1.28 per cent at $59.16 (U.S.) a barrel
Gold (Comex Aug) +0.07 per cent at $1,180.00 (U.S.) an ounce
Copper (Comex Jul) -1.81 per cent at $2.63 (U.S.) a pound

Currencies
Canadian dollar at 81.11 (U.S.), -0.0011
U.S. dollar index +0.174 at 95.146

Bonds
U.S. 10-year Treasury yield 2.3541 per cent, -0.031

ECONOMIC INDICATORS:

Euro area trade surplus

(8:30 a.m. ET) Canada manufacturing sales for April. Consensus is a decline of 0.5 per cent from March. Plus, manufacturing new orders for April. Estimate is an increase of 1.0 per cent month over month.

(9 a.m. ET) Canada existing home sales for May. Estimate is a 4-per-cent increase year over year. Plus, average home prices for May. Estimate is an increase of 7 per cent year over year.

(9 a.m. ET) Canada MLS Home Price Index for May. Estimate is an increase of 5.3 per cent year over year.

(9:15 a.m. ET) U.S. industrial production for May. Consensus is an increase of 0.2 per cent from April. And capacity utilization with a consensus of 78.3 per cent, an increase of 0.1 per cent from April.

STOCKS TO WATCH:

Hudson's Bay Co. (has a $3.9-billion (Canadian) deal to buy German department store chain Galeria Kaufhof from parent Metro AG.

Drugstore operator CVS Health Corp. said it will acquire Target Corp.'s pharmacy and clinic businesses for about $1.9-billion (U.S.). CVS will acquire more than 1,660 Target pharmacies across 47 states in the United States and operate them through a store-within-a-store format, the companies said in a statement.

Earnings include: AlarmForce Industries Inc.

ANALYST ACTIONS:

RBC Capital reiterated an "Outperform" rating on Regeneron Pharma  (REGN-Q) and bumped the price target to $550.