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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 down this morning as investors await the news from the teams negotiating Greece’s debt repayment schedule, while concerns over a slowing Chinese economy could also weigh on sentiment.

World Markets

Asian stocks fell, ahead of last-ditch talks between Greece and its creditors. Chinese shares saw a fall as investors began to worry about another wave of new listings drawing up liquidity in the market.

US stocks fell as a drop in energy shares overshadowed a rally in health-care while investors watched for a breakthrough in Greek debt talks.

UK stocks fell, erasing an earlier advance, following a five-day streak of gains for the FTSE 100 Index.

Headlines

The US Supreme Court upheld a core component of President Barack Obama’s health-care law, backing tax credits used by millions of Americans to buy insurance and preserving the landmark measure that will define his legacy. The 6-3 ruling eliminates the most potent legal challenge to a law designed to cover at least 30 million uninsured people and averts a collapse in state insurance markets.

German Chancellor Angela Merkel and her fellow European Union leaders told their finance ministers to unblock Greece talks once and for all as positions hardened around conditions the country must meet to secure aid. In the rundown to the June 30 expiry of Greece’s euro-area bailout, hopes were raised – then dashed – by Prime Minister Alexis Tsipras, who came to Brussels with a set of proposals only to push back when more cuts were demanded. With Greece’s stay in the euro at stake, negotiations have picked up in frequency as a breakthrough has proved elusive.

Tesco Plc reported the smallest quarterly sales decline in at least a year, providing another chink of light for Chief Executive Officer Dave Lewis in his efforts to get Britons back shopping with the UK grocery leader. Sales at UK stores open at least a year fell 1.3% on a basis that excludes fuel and value-added tax. That compares with the previous quarter’s 1.7% decline. Almost 10 months into his leadership, Lewis is battling to stem a sales decline that’s now into its fourth year. The CEO, who joined less than a month before the discovery of an accounting scandal, is closing dozens of unprofitable stores and has lowered prices on hundreds of branded goods in an effort to lure back customers from discounters Aldi and Lidl.

Stocks

Admiral Group Plc retreated 1.6% to the lowest price since January after Citigroup Inc. cut its rating on the shares to sell.

Tesco Plc rose after people familiar with the matter said Carlyle Group LP and KKR & Co. are among bidders for the supermarket’s South Korean business.

Sage Group Plc added 3.9%, rebounding after the stock fell the most since 2008 on Wednesday.

Shares in Debenhams rose 1.0% after the retailer said it was on track to meet analysts’ expectations for full-year results. That was despite the department store group recording flat like-for-like sales in the 15 weeks to 13 June.

Oil and gas producer Magnum Hunter Resources shares rose 6.0% after it said it expected to raise $600-$700m by selling its 45.5% stake in its natural gas gathering subsidiary, Eureka Hunter Holdings.

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