World Markets Stall on Valuation and Greek Chaos

123jump.com Staff
04 Jul, 2015
New York City

U.S. payrolls expanded 223,000 in May and jobless rate fell to 5.3%. New orders for manufactured goods in May eased 1%. In the euro area wholesale inflation was stable. Monetary base in Japan continued to rise at a fast pace and investors worried about volatile markets in Shanghai.

[R]3:45 PM – U.S. payrolls expanded 223,000 in May and jobless rate fell to 5.3%. New orders for manufactured goods in May eased 1%. In the euro area wholesale inflation was stable. Monetary base in Japan continued to rise at a fast pace and investors worried about volatile markets in Shanghai.[/R]

Market indexes on Wall Street were in a holding pattern and in Europe indexes struggled to advance.

Markets in the U.S. were closed to celebrate Independence Day.

Crude oil in New York slipped $1.41 to $55.52 a barrel and gold gained $4.30 to $1,167.80 an ounce.

European Markets

European markets remained on the edge as Greece prepares for a referendum vote that may decide the fate of the struggling nation in the euro zone.

The referendum, is scheduled for vote on July 5th and the Supreme Court is also scheduled to announce its decision on the legality of the process.

In London trading, FTSE 100 index decreased 0.7% or 48.07 to 6,582.27 and in Frankfurt the DAX index fell 0.7% or 75.08 to 11,024.52.

In Paris, CAC 40 index slipped 1% or 49.45 to 4,786.11.

For the week, FTSE 100 index slumped 2.6% and the DAX index declined 4% and the CAC 40 index plunged 5.3%.

Banco Santander, S.A fell 0.2% to €6.35 after the Spain-based banking company agreed to acquire 9.68% stake in its separately listed U.S.-based consumer loans business Santander Consumer USA Holdings Inc for $928 million held by Double D Financial Services, LLC.

Following the transaction, Santander’s stake in SCUSA will be of about 68.7%.

Technip slipped 1.1% to €54.84 after the France-based onshore/offshore construction company and South Korea based Samsung in a consortium was awarded two contracts by Royal Dutch Shell for Browse floating liquefied natural gas project in Australia, operated by Woodside Petroleum Limited.

Asian Markets

Two widely followed indexes in Japan closed higher on Friday and extended weekly gains as investors focused on domestic and regional news. Fast Retailing plunged after the apparel retailer reported sharp decline in same-store sales. Family Mart first-quarter sales rose 12%.

Market indexes in Japan closed higher and extended weekly rise as investors stayed calm to growing uncertainties in the euro zone.

The Nikkei 225 Stock Average rose 17.29 to 20,539.79 and the broader Topix index added 3.85 to 1,652.09.

For the week the Nikkei average increased 0.8% and the Topix index rose 0.9%.

The yen closed at 123.08 against a dollar.

Fast Retailing Co Ltd declined 3.7% to 55,740 yen after the retailer said same-store sales at its Uniqlo clothing outlets in June plunged 11.7% and sales at directly-run stores slumped 11.5%.from a year ago month.

The retailer added total sales including online sales plummeted 10.9%.

FamilyMart Co Ltd gained 1.2% to 5,760 yen after the convenience store operator reported net sales in the first-quarter ending in May jumped 11.9% to 99.20 billion yen from 88.64 billion yen in a year ago period.

Net income in the quarter tumbled 75.7% to 3.40 billion yen compared to 14.02 billion yen but operating profit climbed 23% to 11.1 billion yen in the same period a year ago.

Stocks in Mumbai rebounded after worries linked to Greece receded and investors focused on local economic news.

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi approved a ₹50,000 crore or $8 billion over five years for a new irrigation scheme.

Rupee strengthened 5 paisa to 63.46 against one U.S. dollar.

The Sensex Index increased 146.99 or 0.5% to close at 28,092.79. The CNX Nifty rose 40 or 0.5% to 8,484.90.

For the week, Sensex Index advanced 1% and CNX Nifty jumped 1.2%.

Bharti agreed to sell its mobile tower assets in South Africa for $1.3 billion. Lupin agreed to acquire a Russia based generic pharmaceuticals maker.

GSFC plans to invest nearly $1.8 billion in Dahej, Gujarat and set up four new manufacturing units.