On 17 July, 2015 – European markets slid on profit taking

Stocks were mixed on Friday but up for the week as Greek fears recede.
United States
Nasdaq advanced 0.9%, ending its best week in nearly nine months thanks to a rally in Google after it reported earnings that exceeded expectations. The Dow Jones industrials slipped 0.2% while the S&P inched up 0.1%. For the week, the Dow gained 1.8%, the S&P added 2.4% and the Nasdaq rose 4.3%, its largest weekly gain since October 2014. The Dow added 1.8% on the week while the S&P and Nasdaq advanced 2.4% and 4.3% respectively.
Major markets climbed this week as Greece and its creditors came to an agreement on the framework for a new three year loan program. On Friday, the deal cleared another hurdle when German lawmakers overwhelmingly backed it. The European Union also said it would get Athens enough money to enable it to make its debt payments.
Comerica declined after it reported a drop in quarterly earnings, partially a result of the bank setting aside more money to cover losses on loans to energy companies. The news drove Comerica’s stock down. Facebook advanced to a record high on hopes that it could mirror Google’s ad growth. Etsy jumped thanks to a nod from Google during its conference call. But a drop in oil prices limited gains on the broader stock market. Boeing declined and was the biggest drag on the Dow after it said it will take a second quarter charge related to problems with its KC-46 aerial refueling tanker aircraft program. General Electric gained after raising its 2015 outlook for its industrial manufacturing businesses. Honeywell also advanced after reporting better than expected second quarter earnings.
June housing starts jumped 9.8% to an annualized rate of 1.174 million units. Building permits also surged by 7.4%. June consumer price index climbed by 0.3% following a 0.4% increase in May.
Gold at the afternoon London fixing dropped US$11.60 to US$1,132.80. Copper futures were down 1.1% to US$2.50. WTI spot crude was down 2 US cents to US$50.89. Dated Brent spot crude was up 18 US cents to US$57.10. The US dollar was up against the euro, Swiss franc and the Canadian and Australian dollars. It was virtually unchanged against the yen and pound. The Dollar Index was up 0.4%. The yield on US Treasury 30 year bond was down 3 basis points to 3.08% while the yield on the 10 year note was up 1 basis point to 2.35%. 
Europe
Most European markets were down Friday. The pullback was attributed to profit taking after several days of gains fueled by optimism for a Greek solution. On Friday, German lawmakers gave their approval to open talks for a new bailout for Greece, a crucial backing for the controversial proposal that averted an imminent exit of Greece from the euro area. The EU also announced that everything was in place to begin negotiations for a fresh loan for the country. The FTSE was down 0.3%, the DAX declined 0.4% and the SMI finished 0.1% lower. The CAC however, added 0.1%.
The European Stability Mechanism Board of Governors also approved a decision to grant, in principle, stability support to Greece in the form of a loan program following approvals from national parliaments. In a press conference, European Commission Vice President Valdis Dombrovskis said that the €7.16 billion bridge loan approved on Thursday will reach Greece by Monday. He also suggested that the new bailout program for the country would be ready by August. Further, he said the bailout talks will now take place in Athens.
RWE and E.ON were down. However, Alcatel-Lucent and Orange gained. LVMH also gained. AstraZeneca declined after it said it completed its agreement with Swiss specialty pharma firm Tillotts Pharma for the divestment of global rights outside the US to gastroenterology drug Entocort. Marks & Spencer retreated after the retailer said John Dixon, Executive Director of General Merchandise, decided to leave the business to pursue career opportunities outside of the company. Meanwhile, 888 Holdings surged after reporting an £898 million deal to acquire Bwin.party. Ericsson climbed after the company reported second quarter results. Both Volvo and Electrolux slipped after reporting second quarter results.
Asia Pacific
Asian stocks extended their recent gains, although the advances were modest following a recent rally on easing fears over the Greek debt deal and the Chinese stock market rout. A raft of strong US earnings reports and a rise in Chinese shares for the second day running helped to underpin sentiment in an otherwise quiet trading session amid holidays in Indonesia, Malaysia and Singapore.
The Shanghai Composite climbed 3.5% and the Hang Seng added 1%. More companies resumed trading and investors clung to hopes that the People’s Bank of China will act to cut interest rates and reserve requirements to inject liquidity, stabilize stock prices and revive investor sentiment if the situation demands. On the week, both the Shanghai Composite and the Hang Seng were up 2.1%.
Japanese shares extended gains for a fifth consecutive session. The Nikkei was up 0.2% to a three week high in thin trading. On the week, the index added 4.4%. Nikon, Sumitomo Mitsui Trust Holdings and Sumco climbed. However, Sharp tumbled on a Nikkei report that the company will likely report an operating loss of about ¥35 billion for the quarter ended June. Toshiba gained amid reports that it’s Chief Executive will step down as soon as September.
Both the S&P/ASX and All Ordinaries were virtually unchanged on the day. However both indices added 2.2% on the week. Banks and miners were mixed. The Kospi retreated 0.5% as investors took profits in recent outperformers and shipbuilding stocks succumbed to selling pressure on earnings concerns. On the week, the index was up 2.2%. The Sensex edged up 0.1% and advanced 2.9% on the week.
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*
Monday — Germany posts June producer prices.
Tuesday — Both the Reserve Bank of Australia and the Bank of Japan publish minutes from their recent policy meetings.
Wednesday — Australia posts second quarter consumer prices. The Bank of England publishes minutes from its recent policy meeting. In the US, FHFA releases May house prices. June existing home sales will be released.
Thursday — Japan reports June merchandise trade. UK releases June retail sales. EC consumer confidence flash for July is released. In the US, June leading indicators will be released along with weekly jobless claims, money supply and fed balance sheet.
Friday — Flash July composite PMIs will be released for the Eurozone, Germany and France. Flash manufacturing PMIs will be released for China, Japan and the US. June US new home sales will be posted.
*Note — all releases are listed in local time.