On 03 July, 2015 – Global markets declined due to events unfolding in Greece

US markets were closed for Independence Day. European markets slid ahead of Greek referendum; most Asian markets also fell.
Europe
European stocks fell on Friday, closing their worst week so far this year as investors were cautious ahead of Sunday’s referendum over Greece’s bailout. Greek voters will be asked whether to accept the terms of a bailout agreement set out by its lenders. Greek Prime Minister Alexis Tsipras urged a “no” vote, saying a rejection will bolster his chances of quickly securing a better deal.
Against this uncertainty, the Stoxx Europe 600 fell 0.5% on the day and 3.4% on the week, registering the sharpest weekly pullback since mid-December. Germany’s DAX lost 0.3% on the day and 3.8% on the week, while France’s CAC 40 fell 0.6% and 5% on the day and week, respectively. Trading in Greek stocks has been closed all week. Greek bond prices turned higher on Friday, pulling the yield on 10-year government debt down 6 basis points to 14.83%, according to Tradeweb data. The UK FTSE 100 lost 0.7% on the day and 2.5% on the week.
There was some bright news from the eurozone on Friday, with business activity hitting a four-year high in June. In a final reading, data firm Markit said its composite purchasing managers index was 54.2, up slightly from a preliminary estimate of 54.1.
Asia Pacific
Most Asian markets slid this morning due to uncertainty as Greece voted to reject the terms of its current international rescue programme.
Chinese stocks, however, bucked the trend. Markets soared on Monday after a week of panic selloffs, as China’s government and central bank launched a wave of drastic policies over the weekend to help save the markets. The People’s Bank of China promised to offer “liquidity support” to state-backed margin-finance entities and reported a suspension of initial public offerings. The Shanghai Composite Index opened 7.8% higher, and although it quickly trimmed those gains, it was trading at 3.7% an hour into the session. The index had slumped more than 12% in the previous week. However, Hong Kong stocks reversed their own opening gains and declined due to deepening concerns after the Greek referendum rejected that nation’s rescue programme. HSBC Holdings and Standard Chartered, both of which are based in Europe, declined. Exchange-operator Hong Kong Exchange & Clearing also plummeted after Goldman Sachs downgraded its rating on the stock to sell and slashed its target price.
Australia’s S&P/ASX 200 was down 1.1% in early Monday trading, with resource shares among the hardest-hit as a rising dollar weighed on commodity prices. BHP Billiton, Rio Tinto and Fortescue Metals Group were among the decliners. A plunge in crude-oil futures sparked a concomitant weakening of energy stocks, with Woodside Petroleum, Oil Search and WorleyParsons registering steep declines. Financials also suffered from the Greek news, with shares in National Australia Bank and Westpac Banking among the decliners.
Japanese stocks also fell sharply, with the Nikkei Average down 1.4% in early Monday trading. Ahead of the start of trade, Japanese Finance Minister Taro Aso said both the government and Bank of Japan were “fully prepared” to handle any possible global fallout from Greece. With the Greek decision holding the possibility of its departure from the eurozone, and even raising questions about the future of the euro itself, the yen rose in safe-haven buying against both the euro and the US dollar. While shares were down across the board, companies with significant exposure to Europe, including Mazda Motor and Ricoh were among the leading decliners.
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 – Germany releases Consumer Price Index (CPI) and retail sales YoY data.
Tuesday – UK and Germany release industrial production data; retail sales Purchasing Managers’ Index (PMI) is on tap for the eurozone and the US will release trade balance data.
Wednesday – Japan releases trade balance data; CPI and Purchasing Price Index (PPI) data is on tap from China; US releases MBA mortgage application figures.
Thursday – Australia releases unemployment rate data; Germany releases its current account balance; in the UK, the Bank of England will release its bank rate; in the US, minutes from Federal Reserve meeting and initial jobless claims are on tap.
Friday – Japan releases PPI and Consumer Confidence Index data.
*Note — all releases are listed in local time.