On 02 July, 2015 – Global markets declined ahead of Greece referendum

US markets fell on weaker than expected employment data. China led Asian markets lower as policymakers said they will launch an investigation into suspected market manipulation.
United States
US stocks ended a volatile holiday-shortened week with losses, as investors grappled with heightened uncertainty related to Greece. Financial markets will be closed on Friday for Independence Day. The S&P 500 ended one point lower on the day and recorded a 1.2% loss over the week, its second weekly loss in a row. The Dow Jones Industrial Average slipped 0.2% on the day and 1.2% over the week. The Nasdaq Composite closed 0.1% lower and booked a 1.4% loss over the week.
In corporate news, shares in Health Net surged after Centene agreed to buy the company in a cash-and-stock deal worth $6.8 billion. Centene’s shares, however, declined. Shares in Tesla Motors rose as it said second-quarter deliveries of its 11,507 Model S vehicles jumped 52% from the year-earlier period. Xoom Corp. surged as the digital payments company received a buyout bid from PayPal. Progress Software rose after it raised its outlook for the year following better-than-expected earnings.
On the economic front, the monthly jobs report and weekly unemployment claims were weaker than expected. Government data for June showed that the economy added 223,000 new jobs, which was in line with forecasts. However, May and April numbers were cut. The unemployment rate ticked down to 5.3%, mostly due to more people leaving the labour force. Separately, weekly jobless claims climbed 10,000 to 281,000. Analysts noted that the report was solid enough for the Federal Reserve to raise interest rates in September, yet a lack of wage growth could give policy makers an excuse to wait until December.
Europe
European stocks ended lower Thursday, with investors nervously watching the situation in Greece. The Stoxx Europe 600 fell 0.4%, the DAX 30 declined 0.7% and the CAC 40 lost 1%. Bucking the trend, the FTSE 100 rose 0.3%, led by BP. The oil company’s shares surged after it said it would pay $18.7 billion over 18 years to settle all US federal and state claims arising from the Deepwater Horizon spill back in April 2010. BP’s Chairman said that agreement “resolves the company’s largest remaining legal exposures, provides clarity on costs and creates certainty of payment for all parties involved.”
Shares in Electrolux slid after the US Justice Department filed a suit seeking to block its acquisition of General Electric’s appliance business. Dixons Carphone rose as the British mobile-products retailer plans to open stores in the US, leveraging a partnership with Sprint Corp.
Meanwhile, investors are closely watching the developments in Greece. The country is set to hold a referendum on Sunday on creditors’ previous demands. This poll is splitting Greek voters and spreading dissent inside the government as the country faces a potentially devastating bankruptcy.
Asia Pacific
Asian markets are mostly down in early trade on Friday, as the outcome of Greece’s bailout terms appears uncertain and economic data from the US failed to buoy sentiment.
Chinese shares tumbled early Friday. The Shanghai Composite Index plunged 3.3%, adding to the previous day’s 3.5% fall. The benchmark index has sunk roughly 30% from its June 12 peak, falling in nine of the last 13 trading sessions. The China Securities Regulatory Commission, the nation’s financial regulator, said Thursday night that it had decided to launch an investigation into suspected market manipulation possibly linked to recent market turmoil. At the same time, the People’s Bank of China pledged to hold the line against systemic and regional financial risk. Dragged by the weakness in mainland Chinese stocks, Hong Kong’s Hang Seng Index slid 0.2%. Chinese brokerage firms suffered sharp losses, with shares in Shenwan Hongyuan H.K., China Everbright and Citic Securities declining. Insurers, including China Pacific Insurance Group and PICC Property & Calsualty were also hit hard.
Japanese blue-chip stocks slipped in early Friday trade, with the Nikkei Average down 0.3%. With the dollar retreating to ¥123.05 from its day-earlier level of ¥123.33, some exporters trended lower, all the more so as the market awaited the outcome of Greece’s referendum on its bailout package. Shares in Sony, Panasonic, Sharp and Honda Motor declined.
Australian stocks also declined in early Friday trading, with the S&P/ASX 200 down 1.3%, wiping out most of the benchmark’s 1.4% gain registered on Thursday. Resource stocks declined in line with weaker commodity prices, including a significant pullback for iron ore prices, which weighed on Fortescue Metals Group and Arrium. Likewise, with Nymex and Brent crude-oil futures both in retreat during early Sydney trade, shares in Oil Search, WorleyParsons and Santos declined.
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*
June composite PMIs will be released for China, Japan, the Eurozone, Germany and France while services PMIs are posted for India and the UK. Eurozone May retail sales will also be posted. It is a holiday in the US and all markets are closed.
*Note — all releases are listed in local time.