In Europe, Bank of Greece downgraded its growth outlook for 2017, which weighed on markets.
United States
After advancing for most of Friday’s trading session, the indices pulled back in afternoon trading. The Nasdaq declined while the Dow Jones industrials and S&P edged upward. For the week, the Dow was down 0.2 percent, the S&P declined 0.6 percent and the Nasdaq retreated 2.0 percent. For the month of June, the Dow and S&P were up 1.6 percent and 0.5 percent respectively while the Nasdaq was down 0.9 percent. Trading was mostly subdued ahead of the Independence Day holiday on Tuesday. Many investors, since it was the final trading day of the quarter, took the opportunity to buy more shares or close out positions and book profits.
Remarks from European central bankers earlier the week helped set the tone for the market, spurring speculation among investors that global interest rates could move higher. That sent bond yield sharply higher and helped lift shares in banks. Traders also sold off technology stocks. The sector had its worst week this year.
Industrial stocks and consumer-focused companies advanced and energy stocks also rose along with crude oil prices. Utilities, technology and health care companies retreated. The Dow benefited from a sharp increase by Nike. The jump came after the company reported fiscal fourth quarter results that exceeded estimates on both the top and bottom lines. Nike said it would launch a pilot online sales program with Amazon.com.
Kansas City Southern and Norfolk Southern rallied. Quanta Services gained. Parkway jumped after the Canada Pension Plan Investment Board agreed to buy the commercial real estate investment trust for about $1.13 billion. Hain Celestial climbed after activist investor Engaged Capital disclosed a 9.9 percent stake in the organic food maker. American Outdoor Brands slid after the firearms maker issued weak forecasts for the current quarter and the fiscal year.
May personal income climbed a monthly 0.4 percent after increasing a downwardly revised 0.3 percent in April. Personal spending inched up 0.1 percent after climbing by 0.4 percent in April. The June final University of Michigan consumer sentiment reading was 95.1, up from the preliminary reading of 94.5. Despite the upward revision, the consumer sentiment index was still down from the final May reading of 97.1.
These data reflect observations at 4:00 PM US ET. Gold at the afternoon London fixing was down US$1.25 to US$1,242.25. Copper futures were up 0.6 percent to US$2.71. WTI spot crude was up US$1.11 to US$46.04. Dated Brent spot crude was up US$1.14 to US$48.77. The US dollar was up against the yen, euro, and the Swiss franc. It declined against the pound and the Canadian dollar and was unchanged against the Australian dollar. The Dollar Index was up 0.1 percent. The yield on US Treasury 30 year bond was up 1 basis point to 2.83 percent while the yield on the 10 year note was up 4 basis points to 2.30 percent.
Europe
European indices were down Friday, for the week and the month of June. The markets fluctuated between small gains and losses over the course of the trading day. On Friday, the FTSE was down 0.5 percent, the SMI declined 0.4 percent and both the CAC and DAX lost 0.7 percent. For the week, the indices were down 1.5 percent, 1.4 percent, 2.8 percent and 3.2 percent respectively.
Bank of Greece downgraded its growth outlook for 2017 citing negative carry over from the end of 2016. In its monetary policy report, the BoG said the economy will grow only 1.6 percent this year instead of previous projection of 2.5 percent. According to central bank, the weaker growth dynamics can be attributed to the long delay in completing the second review and to the consequent surge in uncertainty, which led to a considerable decline in investment.
Bayer declined after the company warned it would adjust full-year forecasts for sales and earnings in the Crop Science and Consumer Health divisions. Royal Dutch Shell, BP and Glenore retreated. BASF slid after unveiling plans to buy seed assets from rivals. Lufthansa gained on reports the airline is boosting its technology offering to meet the needs of its customers in 2020.
Greene King was lower on a broker downgrade as was United Utilities Group. Subsea 7 advanced in Oslo after it agreed to take over certain business and assets of fellow subsea company Emas Chiyoda Subsea. Novartis and Roche declined. Lonza increased as did Clariant and Kuehne and Sika. Richemont and Swatch advanced. Nestlé finished lower. Banks including Credit Suisse, UBS and Julius Baer closed lower.
Flash harmonized index of consumer prices for June eased to 1.3 percent from a year ago and down from 1.4 percent in May. Final first quarter reading for UK gross domestic product was confirmed at 0.2 percent on the quarter and 2.0 percent on the year.
Asia Pacific
Stocks were mostly lower Friday— broad declines in the US and in Europe overnight overshadowed encouraging manufacturing data from China.
The Shanghai Composite edged up 0.1 percent as the June CFLP manufacturing and services sector added to signs of a stabilizing economy. The official manufacturing PMI rose to 51.7 in June from 51.2 in May, marking the quickest pace of expansion in three months. Non-manufacturing activity also expanded at a faster pace in June, with the PMI services reading at 54.9, up from 54.5 in May. The Shanghai Composite was up 1.1 percent for the week and added 2.4 percent in June. The Hang Seng lost 0.8 percent Friday but was up both for the week and month by 0.4 percent.
The Nikkei and Topix declined 0.9 percent and 0.7 percent respectively Friday thanks to mixed economic reports weighing on sentiment. For the week, the Nikkei retreated 0.5 percent while the Topix was virtually unchanged (up 0.58 point). The indices advanced 2.0 percent and 2.8 percent respectively in June. May consumer prices were up for a fifth consecutive month while consumer spending was tepid, the jobless rate ticked higher and industrial output slipped back into contraction.
The S&P/ASX tumbled 1.7 percent and the All Ordinaries lost 1.6 percent. For the week however, both indices advanced. The S&P/ASX was up 0.1 percent and the All Ordinaries added 0.2 percent. The big four banks and BT Investment Management tumbled.
The Kospi was down 0.2 percent on the day and 0.6 percent for the week. It was 1.9 percent higher for the month of June. On Friday, shares were down amid selling by foreign and institutional investors as disappointing industrial output data added to worries about rise in interest rates globally.
The Sensex added 0.2 percent on Friday but was down both for the week and month by 0.7 percent.
Looking forward

Central Bank activities

July 4

Australia

Reserve Bank of Australia Monetary Policy Announcement

July 5

United States

FOMC Minutes Published

July 6

Eurozone

ECB Accounts of Monetary Policy Meeting Published

The following indicators will be released this week…

Europe

July 3

Eurozone

Manufacturing PMI (June)

Germany

Manufacturing PMI (June)

France

Manufacturing PMI (June)

UK

Manufacturing PMI (June)

July 4

Eurozone

Producer Price Index (May)

July 5

Eurozone

Composite & Services PMI (June)

Germany

Composite & Services PMI (June)

France

Composite & Services PMI (June)

UK

Services PMI (June)

July 6

Germany

Manufacturing Orders (May)

July 7

Germany

Industrial Production (May)

France

Industrial Production (May)

Merchandise Trade (May)

UK

Industrial Production (May)

Merchandise Trade (May)

Asia Pacific

July 3

Japan

Tankan Survey (Q2.2017)

China

Manufacturing PMI (June)

India

Manufacturing PMI (June)

July 4

Australia

Retail Sales (May)

July 6

Australia

Merchandise Trade Balance (May)

Americas

July 3

United States

Manufacturing PMI (June)

ISM Manufacturing Index (June)

Construction Spending (May)

United States

Factory Orders (May)

July 6

Canada

International Trade (May)

United States

International Trade (May)

ADP Private Employment (June)

Services PMI (June)

ISM Nonmanufacturing Index (June)

Initial Unemployment Claims (week ending prior Saturday)

July 7

Canada

Labour Force Survey (June)

United States

Employment Situation (June)

Global Stock Markets

*Note — all releases are listed in local time.

Source: Fidelity

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