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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 marginally higher this morning, clawing back some of yesterday’s losses on the Greece ‘No’ vote.

World Markets

Asian stocks closed mostly higher and Treasuries fell amid speculation that Monday’s sell-off in risk assets was overdone.

US stocks fell, as energy shares dropped with the price of oil and investors weighed negotiations over Greece’s financial crisis.

UK stocks declined along with European peers after Greek voters rejected creditors’ austerity demands.

Headlines

Greek Prime Minister Alexis Tsipras was given hours to come up with a plan to keep his country in the euro as citizens endure a second week of capital controls. German Chancellor Angela Merkel said “time is running out” as she and French President Francois Hollande, leaders of the two biggest countries in the euro bloc, responded to Sunday’s referendum. The European Central Bank piled on the pressure by making it tougher for Greek banks to access emergency loans. Finance ministers and leaders from the 19-member region gather today.

UK Chancellor of the Exchequer George Osborne is set to give mayors and local governments the power to allow shops to open for longer on Sundays. The move, to be announced in Wednesday’s budget, will allow local authorities to permit longer Sunday opening if they expect it to boost economic activity in their areas.

German industrial production held steady in May, in a sign the economy is withstanding threats to confidence from the crisis in Greece. Output was flat after a revised 0.6% increase in April the Economy Ministry in Berlin said today. The reading compares with the median estimate of economists for a 0.1% gain. Output climbed 2.1% from a year earlier. Manufacturers are benefiting from faster growth at home and continued expansion in the euro area even as Greece’s debt crisis threatens the stability of the currency union. An index of economic activity in the euro region is at a four-year high and the Bundesbank raised its forecasts for Germany last month.

Stocks

Weight Watchers added 8% on bid talk, having been up 16%.

Mining equipment maker Joy Global Inc. lost 2.9% to a six-year low. Caterpillar Inc. and General Electric Co. fell more than 1.5%.

Rolls-Royce Holdings Plc declined 6.3% to the lowest since October after cutting its full-year profit guidance and halting a share buyback to preserve cash.

Banking and financial shares also fell, with Royal Bank of Scotland Group Plc and Barclays Plc retreating at least 1.6%.

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