Investment market update
This bulletin provides you with an overview of the latest market news from around the world – world markets, key headlines, stocks and market data.
UK equities are expected to open in positive territory, amid optimism that Greece and its creditors can find some compromise in talks today. An emergency meeting of ministers has been called in Brussels in a bid to find a resolution to the saga.
Asian stocks climbed with US index futures and the euro as Greece presented a new plan to stave off default before an emergency summit on the country’s debt crisis.
US stocks declined on Friday, after the Standard & Poor’s 500 Index traded near a record, as energy shares slumped with oil and financial companies fell from a seven-year high.
UK stocks were little changed on Friday as investors considered the impact of a possible Greek default.
Greek Prime Minister Alexis Tsipras presented a new plan to stave off default before an emergency summit on Monday that could decide his nation’s future in the euro. The new offer “was a good basis for progress at tomorrow’s Euro summit,” European Commission spokesman Martin Selmayr, said in a Twitter posting. He also referred in German to the inception of the plan as “birth by forceps.” The euro strengthened in Asian trading. Before the start of the summit in Brussels, Tsipras will meet with representatives of the countries’ main creditors. He’ll sit down with European Council head Donald Tusk before they’re joined by European Central Bank President Mario Draghi, International Monetary Fund Managing Director Christine Lagarde, EU Commission President Jean-Claude Juncker and Eurogroup head Jeroen Dijsselbloem, an e-mailed statement from the Greek prime minister’s office said. With the clock running down on a June 30 deadline to make payments and work out a new aid deal after months of fruitless negotiations, Tsipras will have to convince the country’s creditors that he’s ready to compromise on election promises and avoid a default. With its finances in tatters and banks bleeding deposits at record pace, it’s unclear how long Greece can hold out without a fresh infusion of rescue loans.
Britain’s manufacturing lobby has called on Chancellor George Osborne to protect infrastructure and investment spending. Manufacturers and retailers are offering to do more to improve Britain’s dismal productivity performance in return for stronger support for infrastructure investment, research and tax incentives to encourage higher rates of pay. The productivity challenge, one of the Chancellor’s priorities, is highlighted in reports released by the EEF, the manufacturers’ organisation, and the British Retail Consortium (BRC) in an effort to influence next month’s Budget.
Glencore Plc fell 1.7% after the commodity producer sold its Cosmos nickel mine.
Financial shares in the S&P 500 slid as the yield on 10-year Treasuries dropped to an almost three-week low. JPMorgan Chase & Co. slipped 1%, pacing losses in the KBW Bank Index. Bank of America Corp. and Wells Fargo & Co. lost at least 1.1%.
Technology shares fell on Friday, with Microsoft Corp. down 1.3% after three days of gains, and Oracle Corp. slipping 2% on top of Thursday’s 4.8% drop.
FitBit Inc. advanced 9.5%, after surging 48% in its trading debut on Thursday.