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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.

Early Trading

UK equities are expected to open lower again this morning, on a day when Greece is likely to officially default on its payment to the International Monetary Fund.

World Markets

Asian stocks took positive steps overnight with Chinese shares paring losses as the government tried to buoy sentiment amid a bear market.

UK, European and US stocks fell to their lowest level since January amid growing concern that Greece will default and be forced out of the euro area.

Headlines

The euro headed for its best quarterly gain in four years against the dollar amid speculation the European Central Bank will be able to contain any fallout should Greece default. The common currency rallied on Monday from a near four-week low amid reports German Finance Minister Wolfgang Schaeuble told lawmakers he doesn’t view Greece as a contagion risk.

The battle lines over Greece’s future hardened as the country prepares to leave the protection of Europe’s bailout regime and its citizens grapple with a new reality of capital controls. As 12,000 people gathered in the central Syntagma Square with banners that read “our lives do not belong to the creditors,” Greek Prime Minister Alexis Tsipras told ERT TV that European leaders wouldn’t throw his country out. Meanwhile, a European central banker signalled a way still could be found to keep Greece in the currency bloc — if voters reject Tsipras’ policies in a referendum Sunday.

UK consumer confidence got a post-election bounce this month, rising to its highest level in more than 15 years, according to GfK. The company said on Tuesday that its sentiment index jumped 6 points in June to 7. That’s the best reading since January 2000. The sub components in the gauge, measuring everything from consumers’ view of their finances to willingness to splash out on big-ticket items, also increased. The report is the first from GfK since the May 7 general election; questioning for last month’s index began.

Stocks

HSBC Holdings Plc and Barclays Plc fell at least 2.2% on Monday.

TUI AG decreased 7.1% after two units said over the weekend that some customers were victims of a terror attack in Tunisia.

Royal Dutch Shell Plc and BP Plc slipped at least 2.3% as oil declined for a fourth day.

Macy’s Inc. fell 3.8%, its biggest decline since February, after Deutsche Bank AG downgraded the department-store chain, citing a sales slump and mounting expenses from shipping, retirement and health-care.

Raw-material companies in the S&P 500 were on track for their largest fall since January. Dow Chemical Co. dropped 3.6% while DuPont lost 2.9% to its lowest level in 16 months.

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