On 09 June, 2015 – European markets fell on continued worries over Greece

Stocks were down globally as Greece continues to weight. The markets also were hit by increasing speculation that the US Federal Reserve could raise interest rates sooner than many have so far been expecting, potentially putting an end to years of easy money.
United States
Stocks ended nearly flat Tuesday, but the S&P ended three straight days of declines as financial and consumer staples shares rebounded. Both the Dow Jones industrials and S&P were virtually unchanged on the day. The Dow lost 2.51 points while the S&P added 0.87 of a point. The Nasdaq was 0.2% lower. Analysts opined that stocks would continue to drift until the Federal Reserve meets on June 16 and 17. The stock market has drifted in recent weeks as investors speculate over the Federal Reserve’s next move. Many think the Fed will raise its benchmark interest rate later this year for the first time since the Great Recession. A solid jobs report Friday suggested that the economy had started to recover from its winter slump.
Airlines stocks declined for a second day after disappointing monthly reports from American and Southwest suggested that airlines are losing the ability to raise prices. American lowered its second quarter forecast for a key revenue figure — revenue for every seat flown one mile — and for its pretax profit margin. Southwest reported that its key revenue figure tumbled 6% in May. Both reports added to investors’ concern that the airlines may be adding flights faster than travel demand is rising. Shares of United Continental Holdings, Delta Air Lines, JetBlue Airways, Alaska Air Group and Spirit Airlines were also down. Lululemon Athletica advanced after it raised its outlook for the year after posting a better than expected 10% increase in first-quarter revenue. General Electric agreed to sell its private equity lending unit to Canada’s largest pension fund in a deal valued at about US$12 billion.
Gold at the afternoon London fixing was up US$4.60 to US$1,177.40. Copper futures were up 0.6% to US$2.71. WTI spot crude was up US$1.80 to US$59.94. Dated Brent spot crude was up US$1.98 to US$64.67. The US dollar was up against the euro, yen, Swiss franc and the Australian dollar. However, it declined against the pound and Canadian dollar. The Dollar Index slipped 0.1%. The yields on both the US Treasury 30 year bond and the 10 year note were up 5 basis points to 3.16% and 2.43% respectively.
Europe
Shares were lower for a sixth trading session. Investors continue to worry about the situation with Greece with a solution nowhere in sight. The FTSE was down 0.5%, the CAC declined 0.2%, the DAX retreated 0.6% and the SMI lost 0.9%. The DAX, having lost more than 10%, is now in correction mode.
Deutsche Telekom and Deutsche Bank were down. Infineon Technologies and SAP retreated. Fresenius and Fresenius Medical Care declined. However, Peugeot, Renault and Michelin rallied. LVMH and Unibail-Rodamco were lower on the day. HSBC declined after the lender announced that it will undertake a significant reshaping of its business portfolio. HSBC intends to sell its operations in Turkey and Brazil and accelerate investments in Asia. The bank is targeting annual cost-saving initiatives of US$4.5 billion to US$5.0 billion by 2017. The company is expected to eliminate 25,000 jobs globally. Diageo increased on a broker upgrade. Both Royal Mail and Mondi gained.
The IMF raised Spain’s gross domestic product (GDP) growth forecast for 2015 to 3.1% from 2.5% and for 2016 growth was raised to 2.5% from 2.0%. Eurozone gross domestic product expanded 0.4%, unchanged from the flash estimate. On the year, economic growth improved to 1% from 0.9% a quarter ago. The annual growth rate also matched flash estimate. The April UK trade deficit narrowed more than expected to a 13 month low. The visible trade deficit narrowed by £2.1 billion to £8.6 billion — the smallest shortfall since March 2014. Mining stocks Anglo American and Rio Tinto retreated on a broker downgrade.
Asia Pacific
Asian stocks retreated thanks to disappointing Chinese inflation data, growing fears of a Greek debt default and the prospects of higher US interest rates.
The Shanghai Composite declined from a seven year high as investors digested tepid inflation data and waited to see whether MSCI will add mainland securities to its benchmark emerging market index. The Shanghai Composite swung between gains and losses before closing down 0.4%. The Hang Seng dropped 1.2% ahead of the MSCI’s decision to be announced later in the global day. China’s consumer price index was up 1.2% on the year in May which was slightly below expectations and down from 1.5% in April. The data are raising concerns about growing deflationary pressures in the country. Producer prices slid 4.6% for a third month to mark the 39th consecutive month of declines.
The Nikkei tumbled 1.8% as a stronger yen weighed on exporters and a survey showed Japanese consumer sentiment fell unexpectedly in May. Companies including Tokyo Electric Power, Advantest, TDK, T&D Holdings, Dai-ichi Life Insurance and Sumco dropped. Kawasaki Heavy Industries declined on a Nikkei report that it plans to start a joint venture with a Chinese conveyor equipment maker to tap China’s industrial robot market.
The S&P/ASX was down 0.6% and the All Ordinaries lost 0.5%. The weak Chinese inflation data underscored concerns over the health of China’s economy. ANZ ended on a flat note, Commonwealth and NAB declined and Westpac advanced. Miners BHP and Rio Tinto dropped while Fortescue Metals climbed as iron ore prices held at a four month high despite concerns over weakening Chinese demand. Gold miner Newcrest Mining dropped after restarting work at its Lihir mine in Papua New Guinea.
The Kospi edged 0.1% lower ahead of Thursday’s Bank of Korea monetary policy meeting. The Bank of Korea is widely expected to lower its benchmark interest rate to a fresh record low to cope with sluggish exports and the spread of the deadly virus outbreak. The Sensex was down 0.2%.
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*
Japan reports May producer price index and April machine orders. France, Italy and the UK report April industrial production. First quarter quarterly services survey will be reported in the US.
*Note — all releases are listed in local time.