Morning Spread

Morning Spread

Tuesday 30th June 2015
IndexLevelChg (%)
UK Market6562.88-0.87
Dow Indust Avg17596.35-1.95
S&P 5002057.64-2.09
Nasdaq Composite4958.47-2.40
Nikkei 22520235.73+0.63
Hang Seng26250.03+1.09
IndexLevelChg (%)
Nymex 1m58.47+0.24
Gold Spot1176.95-0.24
GBP/USD1.5719+0.14
GBP/EUR1.4071+0.25
EUR/USD1.1171-0.38
USD/JPY122.16+0.25

European stocks fell as investors considered whether Greece will default on a payment due Tuesday. The ESTX 50 (-0.81%), UK markets (-0.67%), CAC 40 (-1.00%) and the Dax (-1.03%) all posted losses in early trading. Greece is on course to withhold a €1.5 billion payment to the IMF due today. Starting at midnight, it will also no longer be formally under the protection of a euro-area bailout programme. Prime Minister Alexis Tsipras told ERT TV that European leaders wouldn’t throw his country out as the cost would be too high. LVMH Moet Hennessy Louis Vuitton SE and Tod’s SpA each lost -1.7% after Bank of America Corp cut its rating on both companies to “underperform”. Christian Dior slipped -3% after also being downgraded. K+S AG climbed +3% after Handelsblatt reported Potash Corp of Saskatchewan Inc’s offer of more than €40 a share for the company was too low.

 

US stocks fell as the S&P 500 and Dow had their worst day since October after a collapse in Greek bailout talks intensified fears that the country could be the first to exit the euro zone. The Dow Jones Industrial Average (-1.95%), S&P 500 (-2.09%) and the Nasdaq Composite (-2.40%) all dropped. Concerns also grew about Puerto Rico’s debt problems and a bear market in China the day before quarter end and ahead of Thursday’s US jobs report and the long weekend for US Independence Day. Financials were the worst performing S&P sector with a 2.44% decline. US banks have an exposure of $12.7 billion of Greek debt. JPMorgan Chase was down -2.5% and Wells Fargo lost -2.4%. Goldman Sachs was the biggest drag on the Dow, losing -2.6%.

 

Asian stocks rose as investors watched developments in Greece’s debt crisis. The Nikkei 225 (+0.63%), Hang Seng (+1.18%) and the S&P/ASX 200 (+0.67%) all gained. Firms that rely on Europe for sales declined, with Nintendo Co and Nikon Corp retreating at least -1.4%. Aeon Co soared +6.6% on a report that quarterly profit will increase 50%. Japanese banks fell for a second day, with Mitsubishi UFJ Financial Inc losing -1.8%. Sony dropped -8.3% after saying it planned to raise up to 440 billion yen by issuing new shares and convertible bonds to invest in its fast growing image sensors business.