On 15 June, 2015 – European stocks plunged on impasse over a Greek debt deal

Global stocks declined after talks between Greece and its creditors broke off Sunday. Looming central bank meetings added to investor angst.
United States
Stocks followed global markets lower Monday but managed to recoup some of their losses in afternoon trading after a sharp drop on worries about the Greek debt situation. Talks between Greece and its creditors broke up after less than an hour Sunday, raising the prospect of Athens being unable to repay US$1.8 billion owed to the International Monetary Fund by the end of this month. The Dow Jones industrials were down 0.6%, the S&P declined 0.5% and the Nasdaq retreated 0.4%.
Investors were also nervous ahead of the Federal Reserve’s two-day policy meeting that begins on Tuesday. Upbeat consumer sentiment and other data last week added to views the economy is regaining momentum and could encourage the Fed to raise interest raise as soon as September. Investors will focus on any changes in Fed Chair Janet Yellen’s language in a post meeting news conference.
Data on Monday showed that manufacturing activity in New York State contracted in June, while U.S. industrial production for May also unexpectedly declined, mainly because of a strong dollar and a drop in spending by energy companies. However, homebuilder sentiment rose more than expected in June, hitting its highest level since September.
Microsoft weighed the most on both the Nasdaq and the S&P while United Technologies was the biggest drag on the Dow. Cigna soared after it was reported that the health insurer had rebuffed a takeover offer from Anthem. Anthem also advanced. United Technologies shares declined after the company said it was leaving the helicopter business. iDreamSky Technology slumped on news that the Chinese mobile games licensing company received an offer to be taken private by its chairman. AirMedia Group tumbled after news that the Chinese advertising platforms company was selling a 75% stake in its advertising business for more than US$338 million. California homebuilders the Ryland Group and Standard Pacific have agreed to merge. Both companies advanced on the day. Dealertrack Technologies jumped on news that digital marketing company Cox Automotive is buying the maker of software used by automotive dealerships for about US$4 billion.
Gold at the afternoon London fixing was down US$1.40 to US$1,181.40. Copper futures were down 1.2% to US$2.65. WTI spot crude was down 38 US cents to US$59.58. Dated Brent spot crude was down US$1.26 to US$62.61. The US dollar was down against the euro, pound and the Australian dollar. It was virtually unchanged against the yen, Swiss franc and the Canadian dollar. The Dollar Index was down 0.6%. The yield on US Treasury 30 year bond was down 1 basis point to 3.09% while the yield on the 10 year note slipped 3 basis points to 2.36%.
Europe
Shares suffered significant losses Monday on investors’ concerns over a potential Greek default and a possible Greek exit of the Eurozone. Greece and its official creditors ended their meeting with no agreement on Sunday. There remained a significant gap between the plans of the Greek authorities and the demands of the international creditors. The inability of the two sides to reach a compromise has led to worries about a potential Greek default at the end of the month. A critical meeting of the European finance ministers is scheduled for Luxembourg on Thursday ahead of a Brussels’ summit on June 25 and a Greek debt repayment deadline on June 30. Both the FTSE and SMI lost 1.1% while the CAC and DAX dropped 1.8% and 1.9% respectively.
Metro declined after the company decided to sell its department store chain Galeria Kaufhof to Canada’s Hudson’s Bay in a deal valued at US$3.16 billion, including assumed liabilities. Auto makers including Volkswagen, Daimler, BMW, Renault and Peugeot retreated. Deutsche Lufthansa was down on the first day of the Paris Air Show. Banks including Commerzbank, Deutsche Bank, Crédit Agricole, BNP Paribas and Société Générale declined. EasyJet was down after a broker downgrade. Thomas Cook Group advanced after the company announced that it has entered into an agreement with Fosun International Limited to establish a joint venture to develop domestic, inbound and outbound tourism activities for the Chinese market under Thomas Cook brands. In the UK, banks including Standard Chartered, Barclays, HSBC and Royal Bank of Scotland declined.
The Eurozone April merchandise trade surplus increased as exports expanded while imports were down. Switzerland’s retail sales increased in April after declining for three consecutive months. Switzerland’s producer and import prices decreased for the 20th consecutive month in May.
Asia Pacific
Stocks dropped Monday after talks on ending a deadlock between Greece and its international creditors broke up in failure. Eurozone finance ministers meet again on Thursday and it is viewed as the last chance for Greece to clinch a deal if it wants to avoid a default. Greece’s €240 billion bailout expires on June 30. Investors also looked ahead to central bank meetings in the US Japan and Indonesia this week.
Chinese shares fell the most since May 28 after the China Securities Regulatory Commission published new draft rules curbing the amount of margin finance and short selling to no more than four times a brokerage’s net capital. The Shanghai Composite dropped 2.0% while the Hang Seng tumbled 1.5%.
The Nikkei edged down 0.1% as investors fretted over the continuing Greek debt saga and the timing of a US interest rate increase. Among the worst performers were Kawasaki Kisen Kaisha, TDK, Sumitomo Heavy Industries, Nippon Soda and Mitsui Mining & Smelting. Oil & gas exploration and production firm Inpex and JX Holdings declined after oil prices fell sharply on Friday on concerns about oversupply. Honda Motor retreated after reporting a new death tied to defective Takata air bags. ANA Holdings advanced on a Nikkei report that its unit All Nippon Airways plans to open a Mexico City branch this year. Chubu Electric Power, J Front Retailing, MS&AD Insurance Group Holdings and Credit Saison gained on the day.
The S&P/ASX slipped 0.1% and the All Ordinaries lost 0.2%, tracking weak commodity prices. BHP Billiton, Fortescue Metals and BC Iron retreated after iron ore prices fell for the first session in nine on a bout of mild profit taking. The big four banks closed up. Metcash shares advanced after the grocery wholesaler reported a full year loss of A$384 million and said it has reached an agreement to sell its automotive division for A$275 million to Burson Group.
The Sensex increased 0.6% after separate reports published Friday showed an uptick in industrial output and steady inflation. Another downturn in oil prices, some positive news on the monsoon front and encouraging wholesale inflation data also helped buoy investor sentiment.
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*
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.
*Note — all releases are listed in local time.