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 lower this morning after a decisive ‘no’ vote by the Greeks caused further uncertainty within the Eurozone. The Syriza-led government scored a victory as the electorate rejected a compromise plan put forward by the country’s creditors.
Asian stocks fell after Greek voters rejected austerity measures demanded by creditors, further putting into question the nation’s future in the Eurozone.
The US market was closed on Friday for the 4th of July holiday.
UK equities resumed a drop after a two-day gain, posting their biggest weekly loss in a month.
European stocks fell for a second day and German bonds gained as Greece called for a write-down on its debt and investors braced for the referendum.
Greece voted against yielding to further austerity demanded by creditors, leaving Europe’s leaders to determine if the nation can remain in the euro. 61% of voters backed Prime Minister Alexis Tsipras’s rejection of further spending cuts and tax increases in an unprecedented referendum that’s also taken the country to the brink of financial collapse. Outspoken Greek Finance Minister Yanis Varoufakis resigned after the Sunday vote, giving Greece a chance to lower the temperature on its often confrontational interactions with other European countries. As the euro fell to a four-week low in Asian trading and Tsipras’s supporters filled Athens’s central Syntagma Square waving Greek flags Sunday night, German Chancellor Angela Merkel and French President Francois Hollande called for an emergency leaders’ summit on Tuesday. The pair will first meet on Monday evening in Paris to discuss Europe’s next move.
China’s benchmark index fell, erasing the biggest intraday jump since 2008, as a fresh round of government measures to stem $3.2 trillion of losses failed to spark gains outside the nation’s largest state-run companies. More than six stocks dropped for each one that rose on the Shanghai Composite Index, which slipped 0.6%. The benchmark gauge, which opened 7.8% higher, was supported by gains in PetroChina Co. and Industrial & Commercial Bank of China Ltd., the two largest members on the index. The ChiNext measure of smaller companies fell 7.1% while the Shenzhen Composite Index tumbled 5.4%.
Royal Bank of Scotland Group Plc slid 2.1% as US regulators have told the lender that it could pay as much as $13 billion if it loses a lawsuit over its handling of mortgage securities.
Standard Chartered Plc, Smiths Group Plc and Vodafone Group Plc all dropped more than 2%, posting some of the biggest declines in the FTSE 100.
Ashtead Group Plc rose the most, with a 1.4% gain.
Toshiba Corp. tumbled 2.7% after a report the electronics maker plans to cut past earnings by as much as 150 billion yen ($1.2 billion) following accounting problems.
K+S AG added 4.9% after Canadian fertilizer producer Potash Corp. of Saskatchewan Inc. said it can address the German company’s concerns about its takeover proposal.