On 12 June, 2015 – European markets slid on fears that Greece may exit the eurozone

Stocks retreated in Asia and Europe but were mixed in the US. Greece continues to make investors wary around the globe.
United States
A setback in talks between Greece and its creditors helped send stocks lower Friday amid renewed concerns that the country could default on its debts. Despite a drop of 0.7% on the day, the S&P managed to eke out a 0.1% gain for the week, ending a two week slump. The Dow Jones industrials were down 0.8% Friday but advanced 0.3% for the week. Nasdaq lost 0.6% on the day and 0.3% on the week.
An unexpected decision by the International Monetary Fund to walk away from talks with Greece spurred the selling. At a summit meeting in Brussels late Thursday, the fund pulled its negotiators out of talks with Greece, saying there had been no progress and that major differences remained on key issues. Without a deal by the end of the month, Greece faces the prospect of going bankrupt and dropping the euro currency.
Wingstop soared in its first day of trading as a public company. The chicken wings chain raised US$110.2 million in its initial public offering late Thursday. Agios Pharmaceuticals led the biotech sector lower despite reporting an impressive response rate for its leukemia treatment. Eli Lilly was down after a report that said the Alzheimer’s Association may not offer an early look at trial data on an experimental drug. Twitter shares were up a day after Chief Executive Officer Dick Costolo said he was stepping down.
Traders largely shrugged off the latest batch of US economic data, including a report from the University of Michigan showing a much bigger than expected improvement in consumer sentiment in June. The report said the preliminary reading on the consumer sentiment index for June was 94.6 compared to the final may reading of 90.7.
Gold at the afternoon London fixing was up US$4.30 to US$1,182.80. Copper futures were up 0.3% to US$2.68. WTI spot crude was down 81 US cents to US$59.96. Dated Brent spot crude was down US$1.24 to US$63.87. The US dollar was up against the euro and the Canadian and Australian dollars. It was virtually unchanged against the yen. However, it declined against the pound and the Swiss franc. The Dollar Index was virtually down 0.2%. The yield on the US Treasury 30 year bond was unchanged at 3.10% while the yield on the 10 year note edged up 1 basis point to 2.39%.
Europe
Stocks retreated Friday. International Monetary Fund delegates left Brussels Thursday after talks with Greece failed to reach a consensus. Worries over a possible Greek default and the possibility of a “Grexit” weighed on investor sentiment at the end of the trading week. On the day, the FTSE lost 0.9%, the CAC dropped 1.4%, the DAX declined 1.2% and the SMI was 1.3% lower. On the week, the FTSE was down 0.3%, the CAC declined 0.4% and the SMI was down 0.9%. The DAX however, was virtually unchanged.
Auto makers Volkswagen, Daimler and BMW were down. Banks including Commerzbank, Deutsche Bank, Société Générale, BNP Paribas and Crédit Agricole retreated. Zodiac Aerospace declined after the company said its previous target of a current operating income close to that of the previous year would probably not be met. Both Total and Technip declined. Royal Mail increased on a broker upgrade while Compass Group decreased on a broker downgrade. BP, Royal Dutch Shell and Tullow Oil dropped.
Eurozone industrial production grew only marginally in April as energy and consumer goods output remained weak.
Asia Pacific
Stocks were mixed Friday and for the week. Chinese and Hong Kong shares continued their positive momentum on hopes that Beijing would step up its stimulus to arrest the downward pressure on economic growth as deflationary pressures grow. With the IMF pulling out of debt talks with Greece and the US dollar firming up against its rivals on expectations of an earlier than expected increase in interest rates, investors shied away from taking fresh positions ahead of the FOMC meeting to be held on June 15 and 17.
The Shanghai Composite added 0.9% to close at its highest level since January 2008, as traders bet on further stimulus measures to stimulate the economy. The Hang Seng also rallied by 1.4% supported by easing fears of the deadly MERS virus outbreak. On the week, the Shanghai Composite was up 2.8% and the Hang Seng 0.1%.
The Nikkei edged up 0.1% in choppy trading, with a weaker yen supporting underlying sentiment. On the week, the Nikkei lost 0.3%. Exporters were mixed with Hitachi, Panasonic, Sony, Fanuc, Toyota Motor and Kyocera increasing while Honda Motor, Mazda and Sharp declined. Toshiba retreated on a Nikkei report that it will likely admit internal controls were inadequate. Mitsubishi slid on reports it plans to double the size of a hybrid-bond issuance to ¥200 billion. Mitsubishi Heavy Industries advanced after saying it would consider investing in nuclear company Areva.
Both the S&P/ASX and All Ordinaries were down 0.2%. On the week, the S&P/ASX added 0.7% and the All Ordinaries, 0.8%. Rio Tinto shares were down after it announced that it would raise A$1.2 billion through issue of 10-year fixed-rate bonds at a coupon rate of 3.75%. BHP Billiton, Fortescue Metals and BC Iron tumbled despite iron ore futures in China climbing more than 3% to their highest level in almost three months Thursday. The Kospi was down 0.2% Friday and 0.8% on the week. The Sensex added 0.2% but dropped 1.3% for 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 — India posts May WPI. Italy releases May producer price index. Eurozone merchandise trade balance for April is released. In the US, June Empire State manufacturing survey, April industrial production, June housing market index and May Treasury international capital will be posted.
Tuesday — May consumer price index and June ZEW will be posted for Germany. The UK releases May consumer and producer price indices. The US releases May housing starts and permits.
Wednesday — Japan and Italy report their respective May merchandise trade balances. The Bank of England publishes minutes from the monetary policy committee meeting held earlier this month. The UK reports May labour market report. The Eurozone releases final harmonized index of consumer prices for May. In the US, the Federal Reserve publishes the FOMC announcement and its forecast updates. Chair Janet Yellen holds her quarterly press conference.
Thursday — The Swiss National Bank publishes its quarterly monetary policy assessment report. The UK posts May retail sales. The US releases May consumer prices, June Philadelphia Fed survey and weekly jobless claims, money supply and Fed balance sheet data.
Friday — The Bank of Japan announces its monetary policy decision. Canada posts May consumer price index and April retail sales. The US releases the Atlanta Fed business inflation expectations data.
*Note — all releases are listed in local time.