On 14 July, 2015 – Global markets were mixed as investors continued to follow the Greek saga

Investors are waiting to see if the Greek parliament approves the bailout plan put together over the weekend.
United States
Shares advanced again on Tuesday as traders over-looked a weak retail sales report and corporate earnings news. Investors kept an eye on Greece a day after the country struck a preliminary deal with its creditors. The Dow Jones industrials and S&P both were up 0.4% while Nasdaq added 0.7%.
June retail sales disappointed, declining 0.3% on the month after jumping 1.0% in May as consumers continue to remain cautious despite labour market gains.
Micron Technology jumped on reports that a Chinese company was preparing a US$23 billion bid for the company in what would be China’s largest takeover of an American company. Johnson & Johnson reported a 4% increase in quarterly profit. Net profit climbed to US$4.52 billion or US$1.61 per share in the second quarter from US$4.33 billion or US$1.51 per share a year earlier. Revenue fell nearly 9% to US$17.79 billion. Sales of its medical devices fell 12.2% to US$6.36 billion.
JPMorgan Chase reported net income attributable to the bank’s common shareholders rose to US$5.78 billion or US$1.54 per share in the second quarter ended June 30 from US$5.57 billion or US$1.46 per share a year earlier. Total revenue fell 3.5% to US$23.81 billion while revenue from fixed income trading fell 21% to US$2.93 billion. Wells Fargo second quarter profit was US$5.72 billion or US$1.03 a share. That compares with US$5.73 billion or US$1.01 a share in the same period a year ago. Revenue rose to US$21.3 billion.
Gold at the afternoon London fixing was up US$3.40 to US$1,157.40. Copper futures were down 0.2% to US$2.54. WTI spot crude was up 71 US cents to US$52.91. Dated Brent spot crude was up 56 US cents to US$58.41. The US dollar was virtually unchanged against the euro, yen and Canadian dollar. However, it declined against the pound, Swiss franc and Australian dollar. The Dollar Index was down 0.2%. The yield on US Treasury 30 year bond was down 1 basis point to 3.20% while the yield on the 10 year note slipped 3 basis points to 2.40%.
Europe
Most indices advanced Tuesday. The markets were mixed in early trading as investors were cautious before the upcoming Greek deadline. A nuclear agreement with Iran also affected energy stocks while disappointing US retail sales weighed on sentiment in the afternoon. The FTSE added 0.2%, the DAX gained 0.3% and both the CAC and SMI were 0.7% higher. A stock rally that began late last week on anticipation of a Greek bailout deal continued after European leaders announced they had hammered out an agreement with Athens on Monday.
Favorable lending conditions and improved demand for loans continued to underpin further recovery in bank credit in Eurozone during the three months to June, and both businesses and households are expected to take more loans in the third quarter according to the European Central Bank’s quarterly lending survey.
Bank of England Governor Mark Carney said on Tuesday that an interest rate increase is moving closer. At the Treasury Select Committee hearing, Carney said the point at which interest rates may begin to rise is moving closer. It is counter-balanced somewhat by disinflation. There would inevitably be “shocks and adjustments,” he cautioned. He reiterated that the increase in rates would be limited and gradual.
RWE dropped on a broker downgrade. Peer E.ON also retreated. Volkswagen, BMW and Daimler declined as did Peugeot and Renault. Both Technip and Total gained. Sky climbed on a broker upgrade. ITV slipped on a broker downgrade. Kuehne & Nagel climbed after announcing first half results.
Asia Pacific
Asian stocks closed mostly higher on Tuesday, with Australian and Japanese shares leading the region’s gains on easing fears about Greece’s debt crisis. Chinese and Hong Kong stocks succumbed to selling pressure on doubts about the effectiveness of Beijing’s aggressive rescue efforts to calm markets. Investors also cautiously waited to see if the Athens government can push the bailout deal through the Greek Parliament by Wednesday to avert financial collapse. Oil prices tumbled in late afternoon trading after Iran and six world powers agreed a breakthrough deal to limit Iran’s nuclear program in return for the lifting of sanctions.
The Nikkei jumped 1.5% thanks to a weaker yen after Greece and its international creditors agreed on a cash-for-reform deal, allowing market focus to shift back towards a potential Fed interest rate increase later this year. Mitsubishi Materials, Sumitomo Chemical, Mitsui Mining & Smelting, Sumitomo Heavy Industries and Tokyo Electron advanced. Fast Retailing also was up. Nomura Holdings advanced on news it is exclusively selling ¥500 billion of a new type of stock issued by Toyota. Sony dropped after the electronics firm set a price of ¥3,420.5 per share for its first new share offering in 26 years.
Both the S&P/ASX and All Ordinaries jumped 1.9% after Eurozone leaders reached a tentative agreement with Greece for a bailout program. BHP Billiton, Rio Tinto and Fortescue Metals Group climbed. Oil Search, Santos and Woodside Petroleum gained despite plunging oil prices as investors awaited developments surrounding nuclear talks between Iran and six global powers that could end sanctions against Tehran and let more Iranian oil on to world markets. The big four banks also advanced.
After a three day rally, the Shanghai Composite declined 1.2% Tuesday after gaining nearly 13% in the past three sessions. Hundreds of mainland shares remain halted for trading since last week. The Hang Seng was down 0.4%. The Kospi slipped 0.1% led by losses in chipmakers on concerns that China’s efforts to build up its own semiconductor industry could intensify competition in the sector. The Sensex also was 0.1% lower as investors digested mixed inflation numbers and waited to see if the Greek government can push new austerity measures through Parliament by Wednesday to avert financial collapse.
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*
The Bank of Japan publishes its monetary policy decision. China reports second quarter gross domestic product and June industrial production and retail sales. The UK releases its June labour market report. The Bank of Canada announces its monetary policy decision and publishes its Monetary Policy Report. In the US, June producer prices and industrial production along with July Empire State manufacturing survey are on tap. The Federal Reserve publishes its Beige Book in preparation for its FOMC meeting to be held on July 28 and 29. Fed Chair Janet Yellen gives the first of her two days of her semi-annual testimony.
*Note — all releases are listed in local time.