On 11 June, 2015 – Global markets rose on hopes of a Greece debt deal

Most stock indices rallied Thursday though gains in Europe and the US eased after the IMF walked out of a Brussels meeting with Greece.
United States
Stocks advanced on a favorable retail sales report. However, the gains eased after the International Monetary Fund pulled its negotiators out of the talks with the European Union and Greece citing no progress. Both the Dow Jones industrials and S&P added 0.2% while the Nasdaq inched up 0.1%.
May retail sales climbed 1.2%, a sign that strong job growth is starting to increase sales at stores. On the year, sales were up 2.7% from the same month a year ago. Weekly jobless claims edged up 2,000 but remain at an extremely low level.
Boeing gained after predicting demand for planes will soar as millions of people in developing nations take to the skies for the first time. It forecast a need for 43,560 airplanes worldwide by 2034, double the existing fleet. Amgen advanced after a panel of advisers at the Food and Drug Administration recommended approval of a cholesterol lowering drug for people at especially high risk of clogged arteries.
International creditors sent Prime Minister Alexis Tsipras home from a Brussels summit Thursday with a clear message — swiftly tone down your demands in the bailout talks over the next week or face financial ruin. The International Monetary Fund’s delegation unexpectedly left Brussels and flew home, citing major differences with Athens. Greece wants to step up negotiations, a Greek spokesman said later. US Treasury yields neared session lows after the IMF comments raised doubts that Greece was close to a deal to avert default, spurring safe haven demand for US government debt.
Gold at the afternoon London fixing was down US$10.00 to US$1,178.50. Copper futures were down 2.7% to US$2.67. WTI spot crude was down 75 US cents to US$60.68. Dated Brent spot crude was down 71 US cents to US$64.99. The US dollar was up against the euro, yen, pound, Swiss franc and the Canadian dollar. It was virtually unchanged against the Australian dollar. The Dollar Index was up 0.4%. The yield on US Treasury 30 year bond was down 12 basis points to 3.10% while the yield on the 10 year note declined 9 basis points to 2.38%.
Europe
European markets were up in early trading Thursday on investor optimism for a Greek debt deal. The gains were driven by reports that began to circulate late Wednesday that Germany would endorse the Greek cause if the nation accedes to at least one of the economic reform proposals sought by its international creditors. However, the markets pared gains after it was reported that the International Monetary Fund had withdrawn from discussions with Greece. The IMF departed Brussels after stating that “no progress” was being made toward an agreement. The FTSE was up 0.2%, the CAC gained 0.7%, the DAX advanced 0.6% and the SMI added 0.5%.
S&P cut its long term sovereign credit rating on Greece to ‘CCC’ from ‘CCC+’, citing the likelihood of the nation defaulting on its commercial debt within the next 12 months in the absence of a bailout deal with its official creditors. The agency said the ‘C’ short-term rating remained unchanged with the outlook negative, given the risk of a further worsening of liquidity for the sovereign nation, its banks and the economy. S&P also hinted that it could lower the rating within a year if the likelihood of a distressed exchange of Greek commercial debt increases further.
HeidelbergCement finished higher on a broker upgrade, adding to the strong gains of the previous session. Adidas climbed after Nike announced that it has signed a deal to become the NBA’s apparel manufacturer. Adidas announced back in March that it would not look to extend its deal with the NBA. Both RWE and E.ON retreated. LVMH climbed on a broker upgrade. Alstom declined on reports that EU regulators are unlikely to approve the proposed purchase of Alstom’s power unit by General Electric without stronger concessions. Avesco Group surged after it reported a profit before tax for the first half of the year. The company said it is trading ahead of plan and full-year results are likely to exceed the Board’s prior expectations. Royal Bank of Scotland gained. The UK government plans to start selling its shares sooner than expected in the lender. The plan has the consent of the Bank of England and independent adviser Rothschild. Royal Mail declined after the government sold half its stake at a discount.
Asia Pacific
Tokyo stocks jumped Thursday amid improved investor sentiment as the US dollar rebounded against the yen and concerns abated somewhat over Greece’s debt negotiations, giving way to buying on optimism over Japan’s economic outlook. The Nikkei rallied 1.7% after a selloff Wednesday that was sparked by comments from Bank of Japan Governor Haruhiko Kuroda on the yen that sent the currency to a two-week high against the US dollar. However, the yen weakened Thursday. Stocks including West Japan Railway, Central Japan Railway and East Japan Railway gained on the day. Discount store operator Don Quijote Holdings jumped after posting an 18.2% gain on the year in all-store sales in May, and raising its planned dividend payout for the current business year ending June 30. Kobe Bussan climbed after the supermarket company upgraded its pretax profit forecast for the business year through October by about 31% and at the same time raised its planned dividend payout.
The Hang Seng added 0.8%. A slew of Chinese economic data for May, including a gauge of industrial production, was mostly in line with expectations. Industrial production growth edged up to 6.1% from 5.9% in April. It was taken as an indication that the economy was stabilizing. The Shanghai Composite was up 0.3% despite worries about overvalued stocks and following another batch of initial public offering approvals by the securities regulator.
Both the S&P/ASX and All Ordinaries were up 1.4% thanks to firmer commodity prices. May employment increased a far better than anticipated 42,000 (analysts expected 13,500). Unemployment declined to 6.0%. The Australian dollar gained on the report. The Kospi was 0.3% higher after the Bank of Korea cut its policy interest rates by 0.25 basis points to a record low of 1.5%. Economists had expected a cut to counteract the effects of the MERS outbreak in the country as well as deteriorating economic indicators. The Sensex declined 1.7% on worries about the monsoon.
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*
India reports May consumer prices and April industrial production. The Eurozone releases April industrial production. The US posts May producer prices and June preliminary consumer sentiment.
*Note — all releases are listed in local time.