On 5 May, 2015 – European markets slid on fears that Greece may miss its debt repayment

Stocks declined Tuesday on continuing concerns about Greece. Shares in the US and Europe tumbled after the US trade deficit ballooned with analysts projecting that first quarter GDP will be revised into contractionary territory.
United States
Stocks finished sharply lower on Tuesday after a surprisingly wide March US trade deficit raised concerns that the economy contracted in the first quarter. The Dow Jones industrials were down 0.8%, the S&P declined 1.2% and the Nasdaq lost 1.5%.
Chevron and other oil giants fared better than the rest of the market as crude oil climbed above US$60 a barrel for the first time this year. Walt Disney’s stock hit an all-time high after it delivered quarterly results that beat estimates, thanks in part to rising revenue from its Walt Disney World Resort and other theme parks. Kellogg, the maker of Frosted Flakes and Pop Tarts, reported that quarterly earnings slumped 44% as a rising US dollar took a bite out of sales. Shares of Vornado Realty Trust declined after higher rental revenue and the spinoff of its shopping centers drove the company’s profit and revenue growth in the first quarter.
An impasse in talks between Greece and its creditors raised concerns about the country’s ability to handle an upcoming debt payment. Greece will have to find cash to make a payment of €750 million to the International Monetary Fund due on May 12.
Disappointing international trade data put investors in a risk-off mood Tuesday. US stocks sold off after a report showed the trade deficit widened to US$51.4 billion in March, fuelling concerns that the economy contracted in the first three months of the year. The deficit was the largest since October 2008. The unwinding of the port strike on the West Coast which was resolved in March, played a major role in skewing the data. Imports surged US$17.1 billion as backlogs at the ports were cleared. Exports added only US$1.6 billion.
Gold at the afternoon London fixing was up US$21.05 to US$1,197.00. Copper futures were up 0.3% to US$2.93. WTI spot crude was up US$1.48 to US$60.41. Dated Brent spot crude was up US$1.04 to US$67.49. The US dollar was down against all of its major counterparts including the euro, yen, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index was down 0.5%. The yield on US Treasury 30 year bond was up 1 basis point to 2.89% while the yield on the 10 year note added 2 basis points to 2.17%. 
Europe
Stocks retreated as investors continued to worry over the situation in Greece, ahead of the €750 million debt repayment to the International Monetary Fund that is due next week. With time running short, investors are worried that a deal may not be reached before Monday’s meeting of Eurozone finance ministers. The FTSE and SMI each lost 0.8% while the CAC and DAX declined 2.1% and 2.5% respectively.
According to the European Commission, the Eurozone economy is expected to grow more than earlier estimated and inflation is likely to gain momentum later this year. The EC cited positive economic tailwinds such as low oil prices, steady global growth, a weaker euro and supportive economic policies. The Eurozone is now forecast to grow 1.5% this year, up from the previous estimate of 1.3%.
Volkswagen declined after the automaker said it would create a holding company to align its MAN and Scania divisions. Adidas dropped after it backed its full year guidance after reporting better than expected earnings in the first quarter, helped by growth at its Adidas and Reebok brands. Infineon Technologies retreated despite a broker upgrade. Pfeiffer Vacuum Technology gained after the company’s first quarter earnings before taxes increased to €16.4 million from €10.02 million a year ago. Deutsche Lufthansa was down even though the airline swung to a profit in the first quarter, aided by the solid performance of its Swiss and Lufthansa Cargo subsidiaries.
Lafarge was down after its merger with Holcim was approved in the United States and Canada. Banks including BNP Paribas, Crédit Agricole and Société Générale retreated. Glencore gained after reporting a 9% decrease in first quarter copper production. HSBC Holdings declined even though the Asia focused lender reported better than expected first quarter results, supported by growth in its investment banking division. UBS Group surged in Zurich. The lender reported significant increase in its first quarter profit, buoyed by commendable performances from its wealth management and investment banking divisions.
Asia Pacific
Most stocks here retreated as concerns over China’s slowing economic growth and a firmer dollar kept investors on edge amid a quiet day on the economic front. Trading volumes were relatively light because of holidays in Japan, South Korea and Thailand. The Reserve Bank of Australia cut its policy interest rate by 25 basis points for the second time this year, but most investors took this as a sign that the easing cycle has drawn to a close.
Chinese stocks tumbled as concerns about liquidity and media reports that some brokerages have tightened margin requirements in a bid to control risks prompted investors to lock in some profits after recent sharp gains. The Shanghai Composite plunged 4.1%, its biggest single day loss in nearly four months. The Hang Seng, also under heavy selling pressure, lost 1.3% and was down for the fourth straight session.
Both the S&P/ASX and All Ordinaries were virtually unchanged after the Reserve Bank of Australia lowered its key interest rate by 25 basis points to 2.0%. The RBA said that the inflation outlook provided the space for monetary policy easing. Banks and miners were mixed. Australia posted a seasonally adjusted merchandise trade deficit of A$1.322 billion in March, compared with a deficit of A$1.61 billion in February. The Sensex lost 0.2% as investors took profits at higher levels following the previous session’s sharp rally.
Global Stock Market Recap

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*
Australia releases March retail sales. Composite PMIs are reported for China, India, Eurozone, France and Germany. Services PMI is released for the UK. March Eurozone retail sales also will be reported. In the US, the ADP private payroll report for April will be reported along with first quarter productivity and costs. 
*Note — all releases are listed in local time