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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 this morning, taking a lead from Asia overnight which ended 2.1% to 2.9% lower, after Friday’s decision by Greek Prime Minister Alexis Tspiras to put the latest deal from the country’s creditors to its people in a referendum. Capital controls have been imposed in Greece, while banks are set to remain closed.

World Markets

Asian stocks fell overnight, in the first market reaction to Greece’s decision to close its banks and impose capital controls limiting the amount of money which can be withdrawn.

US stocks were mixed on Friday, as strong results from Nike helped lift the Dow Jones, offsetting worries over Greek debt talks.

UK and European stocks closed lower on Friday, as investors remained cautious despite gains in the supermarket sector.

Headlines

The Greek government has confirmed that banks will be closed all week, after a decision by the European Central Bank not to extend emergency funding. In a decree, it cited the ‘extremely urgent’ need to protect the financial system due to the lack of liquidity. Cash withdrawals will be limited to €60 (£42; $66) a day for this period. Athens is due to make a €1.6bn payment to the IMF on Tuesday – the same day that its current bailout expires. Earlier talks between Greece and the Eurozone countries over bailout terms ended without an agreement, and Prime Minister Alexis Tsipras then called for a referendum on the issue to be held on 5 July. The parliament later ratified the plan to hold a referendum. For further information please see the Monday Market bulletin published later today.

Europe is back in fashion as the destination of choice for foreign buyers. The volume of deals involving a European target reached $134.2 billion in the first half of the year, up 57% from a year earlier and poised for the most active year in at least a decade.

China has hosted the signing ceremony of the Asian Infrastructure Investment Bank (AIIB), a new international financial institution set to rival the World Bank and Asian Development Bank. Delegates from 50 countries signed articles that determine each member’s share and the bank’s initial capital. The UK, Germany, Australia and South Korea are among the founding members. Japan and the US, which oppose the AIIB, are the most prominent countries not to join.

Stocks

ARM Holdings Plc dropped 5%, the most among FTSE 100 Index shares, after Sanford C. Bernstein lowered its rating on the stock to the equivalent of a sell.

Tesco Plc gained 2.7% after reporting its smallest quarterly sales decline in at least a year.

Nike shares rose 4.2% after its results beat forecasts. Net income at Nike rose 24% to $865m in the three months to May, helped by more sales of high-end shoes and clothes. Nike also saw growing demand for basketball shoes particularly in its biggest market, North America.

Chip maker Micron Technology (MU) led the semiconductor sector lower, declining by 18.2% after reporting weaker than expected third quarter results and providing disappointing guidance.

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