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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: FTSE drops to January lows on Grexit fears UK stocks were trading at levels not seen since the start of the year on Tuesday morning as fears about a Greek exit from the Eurozone intensified.
With Greece's current bailout set to expire on the same day that Athens faces a debt repayment to the IMF, investors were once again scaling back their appetite for risk, sending the FTSE 100 0.62% lower to 6,579.15 early on. The index has not closed below the 6,600 mark since 19 January.
After failing to secure a funding deal with creditors, Athens has effectively ran out of time to come up with the cash to repay the IMF €1.6bn by the 23:00 deadline on Tuesday evening.
The government has called a referendum on 5 July and has urged the public to vote against creditors' demands in an effort to help it negotiate a better bailout deal. In the meantime, banks will remain closed until after the vote.
Night dealer Jonathan Sudaria from London Capital Group said markets opened on the back foot "as traders don't know what to make of the Greek crisis".
"With only hours to go before Greece defaults on the IMF and the growing support for the 'no' vote, a full on ejection from Europe is a scarily possible reality," he said.
Tuesday is set to be a busy session in terms of economic data, with the final estimate of UK first-quarter GDP on tap in morning trade, along with figures on UK business investment, the UK current account, the UK index of services and the Lloyds business baromoter.
In terms of overseas data, the following key economic indicators will be released: German retail sales, Eurozone unemployment, Eurozone inflation, Canadian GDP, US home prices and US consumer confidence.
Northgate and Ocado fall
Commercial van hire group Northgate fell after underwhelming with its annual results, as it posted a 41% increase in underlying profits to £85m and hiked its dividend 45%. Broker Numis said trading was "solid" but lowered its rating on Northgate from 'add' to 'hold' due to less upside risk.
Investors also gave a cool reaction to half-year results from Ocado after the online grocery company missed forecasts slightly and reported a decline in the average basket size.
Global banking giant HSBC was in the red after Goldman Sachs downgraded the stock to 'neutral', while Compass was lower after Societe Generale cut its rating on the catering group to 'sell'.
Mining stocks were mostly lower as risk appetite waned, with heavyweights BHP Billiton, Glencore and Anglo American all registering falls. Rio Tinto, however, was seeing only small losses after a report in the Financial Times said that Xstrata's former boss Mick Davis was in "serious" talks about buying some of Rio's Australian coal assets.
Travel stocks TUI, Easyjet and IAG were edging higher after suffering steep losses the previous session on the back of fears about the impact on tourism from the Greek crisis and recent terrorist attacks. |
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| | Market Movers
techMARK 3,096.99 -0.50%
FTSE 100 6,579.15 -0.62%
FTSE 250 17,451.54 -0.47%
FTSE 100 - Risers
easyJet (EZJ) 1,552.00p +0.52%
Meggitt (MGGT) 465.30p +0.50%
Standard Chartered (STAN) 1,030.00p +0.49%
ARM Holdings (ARM) 1,052.00p +0.19%
TUI AG Reg Shs (DI) (TUI) 1,035.00p +0.10%
British Land Company (BLND) 803.50p +0.06%
Hikma Pharmaceuticals (HIK) 1,887.00p +0.05%
International Consolidated Airlines Group SA (CDI) (IAG) 493.40p +0.04%
FTSE 100 - Fallers
Barratt Developments (BDEV) 606.50p -1.70%
Standard Life (SL.) 451.30p -1.55%
Taylor Wimpey (TW.) 184.50p -1.55%
Compass Group (CPG) 1,057.00p -1.49%
Pearson (PSON) 1,211.00p -1.46%
Sage Group (SGE) 519.00p -1.42%
Weir Group (WEIR) 1,717.00p -1.38%
Experian (EXPN) 1,159.00p -1.36%
United Utilities Group (UU.) 913.50p -1.30%
Hargreaves Lansdown (HL.) 1,150.00p -1.29%
FTSE 250 - Risers
Home Retail Group (HOME) 168.60p +3.88%
Fidelity China Special Situations (FCSS) 154.00p +3.01%
PayPoint (PAY) 1,011.00p +2.43%
St. Modwen Properties (SMP) 453.70p +1.98%
Daejan Holdings (DJAN) 5,720.00p +1.15%
COLT Group SA (COLT) 190.00p +1.06%
Just Eat (JE.) 403.70p +0.90%
Countrywide (CWD) 572.00p +0.88%
Clarkson (CKN) 2,645.00p +0.72%
Computacenter (CCC) 772.50p +0.65%
FTSE 250 - Fallers
Northgate (NTG) 578.00p -6.55%
Foxtons Group (FOXT) 234.20p -4.41%
Vedanta Resources (VED) 535.50p -3.95%
Ocado Group (OCDO) 413.00p -3.95%
Spire Healthcare Group (SPI) 316.00p -2.32%
Jimmy Choo (CHOO) 158.00p -2.17%
Ted Baker (TED) 2,920.00p -2.11%
Ultra Electronics Holdings (ULE) 1,767.00p -1.94%
Acacia Mining (ACA) 305.40p -1.86%
Interserve (IRV) 641.00p -1.84% |
| | UK Event Calendar | | Tuesday 30 June
INTERIMS
eServGlobal Limited (DI), St. Modwen Properties
INTERIM DIVIDEND PAYMENT DATE
Henderson European Focus Trust, Income & Growth VCT , Jersey Electricity 'A' Shares, Keystone Inv Trust, Schroder UK Mid Cap Fund, Temple Bar Inv Trust, Victrex plc
QUARTERLY PAYMENT DATE
Albion Technology & General VCT, Brunner Inv Trust, Custodian Reit , Ediston Property Investment Company, HICL Infrastructure Company Ltd, Imperial Tobacco Group, MedicX Fund Ltd., Premier Energy & Water Trust, TwentyFour Select Monthly Income Fund Limited
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Chicago PMI (US) (14:45)
Consumer Confidence (US) (15:00)
International Reserves (EU) (11:00)
Unemployment Rate (GER) (08:55)
GMS
Cyan Holdings, Reach4Entertainment Enterprises, Rex Bionics
FINALS
Carpetright, Imagination Technologies Group, Independent Oil & Gas , Northgate, Parallel Media Group, Plastics Capital
ANNUAL REPORT
Caffyns, Independent Oil & Gas , Iomart Group, PetroNeft Resources, Worldwide Healthcare Trust
SPECIAL DIVIDEND PAYMENT DATE
Alliance Trust, Elderstreet VCT, Premier Energy & Water Trust
SPECIAL EX-DIVIDEND PAYMENT DATE
Direct Line Insurance Group
AGMS
Altitude Group, Amedeo Resources, Atlantic Coal, Auctus Growth, BCRE - Brack Capital Real Estate Investments N.V. (DI), Bluecrest Bluetrend Ltd Red GBP, Blur Group , Caza Oil & Gas Inc. (CDI), Crimson Tide, DCD Media, Eco City Vehicles, EIH Plc, Eurasia Mining, Flowgroup, Frontier Resources International, GameAccount Network, Gulfsands Petroleum, Herencia Resources, Impellam Group, Joint Stock Company Rosseti GDR (Each Repr 200 Ord) Reg S, JQW, Landore Resources Ltd., Metals Exploration, Mineral & Financial Investments Limited (DI), Mobile Tornado Group, New Trend Lifestyle Group, NewRiver Retail Limited, Norman Broadbent , Oxford Advanced Surfaces Group, Oxus Gold, PJSC Megafon GDR (Reg S), PJSC Novorossiysk Commercial Sea Port GDR (Reg S), Plaza Centers NV, Proxama , Reach4Entertainment Enterprises, Regal Petroleum, RM2 International S.A. (DI), Rose Petroleum, Serica Energy, Sound Oil, Sovereign Mines of Africa, Strat Aero, Tiziana Life Sciences, Venn Life Sciences Holdings, Water Intelligence, Westminster Group
UK ECONOMIC ANNOUNCEMENTS
Balance of Payments (09:30)
Consumer Confidence (09:30)
Current Account (09:30)
GDP (quarterly national accounts) (09:30)
GFK Consumer Confidence (00:05)
Index of Services (09:30)
FINAL DIVIDEND PAYMENT DATE
Aberdeen New Thai Inv Trust, Alkane Energy, Gamma Communications, Kakuzi Ltd., Michelmersh Brick Holdings, Saga , Spire Healthcare Group, Tandem Group
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks in the red for second day running as Greek default looms European stocks fell in early trading on Tuesday, although losses were a lot less pronounced than they had been in the previous session, while the euro slipped against the dollar, with Greece just hours away from defaulting on its debt to the International Monetary Fund.
By 0900 BST, the benchmark Europe Stoxx 600 index and France's CAC 40 were 1.1% weaker, while Germany's DAX was down 1%.
"Greece will most likely fail to make the payment to the IMF today, but this is not a make-or-break issue," said Societe Generale currency strategists.
"The three main credit rating agencies have said that failure to pay the IMF would not constitute a formal default. More crucial is the European Central Bank continuing emergency liquidity assistance to Greece after the expiration of the bailout programme today. The ECB will meet to decide on the Emergency Liquidity Assistance tomorrow and we expect assistance to be maintained at least through the referendum on Sunday."
The Greek stock market and the country's banks will remain closed this week ahead of a referendum on the creditors' proposals on July 5, but elsewhere in the periphery, Italy's FTSE Mib was down 0.5% while Spain's IBEX 35 was 0.7% lower, having suffered sharp falls on Monday.
In bond markets, Greek debt remained under pressure, although losses paled in comparison with Monday, with the yield on the 10-year government bond up 57 basis points at 15.244%. The corresponding yields on Spanish and Italian debt were up 5 and 4 basis points at 2.387% and 2.406%, respectively.
After the European close on Monday, ratings agency Standard & Poor's cut Greece's credit rating further into junk territory, to CCC- from CCC.
The yield on the 10-year German Bund, meanwhile, fell 4 basis points to 0.757%, as investors looked for somewhere safe to park their cash. Yields move inversely to prices.
In currency markets, the euro was down 0.3% at $1.1200. On Monday, it recovered early losses to trade higher against the greenback by the European close.
RBC Capital Markets said several reasons can be put forward for the move in the euro. "The market is increasingly discounting a 'yes' vote; hedged European equity investors have had to buy euro as equities sold off; the market was caught short and a squeeze exaggerated euro's bounce; and USD gains are capped by what a bad Greek scenario might mean for Fed tightening."
On the corporate front, Pernord Ricard fell after saying it expects slower growth this year.
Elsewhere, shares in LVMH Moet Hennessy Louis Vuitton dropped after Bank of America Merrill Lynch cut its rating on the stock. On the data calendar, Eurozone inflation and unemployment rate are at 1000 BST. In the US, S&P/Case Shiller home prices are at 1400 BST, while the Chicago PMI is at 1445 BST and consumer confidence is at 1500 BST. |
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| | US Market Report | | US close: Dow plunges over 350 points as Greece teeters on the brink US stocks plunged on Monday, as the crisis in Greece drove the Dow Jones Industrial Average to the biggest drop since June 2013.
The Dow Jones closed down 350.33 points at 17,596.35, while the S&P 500 and the Nasdaq shed 44 and 104 points respectively.
Elsewhere, Asian stock markets closed with heavy losses, with Chinese equities in bear-market territory, as fears about Greece hammered investor sentiment.
Not even an interest rate cut by the People's Bank of China couldn't halt the slide on stock markets in Shanghai
"Beijing is battling to keep investor confidence high, but the latest interest rate cut wasn't enough to prevent a bear market," said IG's analyst David Madden.
"Once the sentiment turns sour it is difficult to regain it, and the sea of selling overnight in the Far East couldn't have come at a worse time now that Greece is a day from defaulting."
Oil prices tumbled, with West Texas Intermediate losing 2.48% to $58.19 a barrel, while Brent dropped 2.16% to $61.92 a barrel.
Banks bear the brunt
Pending home sales rose to their highest level in nine years in May, according to National Association of Realtors, although market reaction was fairly muted.
In corporate news, the Greek crisis weighed heavily on the US banking sector, with Citigroup and Goldman Sachs both losing 2.59%, while JP Morgan fell 2.59%.
General Electric slid 1.66% after announcing it will sell its US, Mexico, Australia and New Zealand fleet businesses to Element Financial for $6.9bn. |
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| | Newspaper Round Up | | Tuesday newspaper round-up: Greece, Rio Tinto, UK consumer confidence European Council president Donald Tusk sent a letter to Greek prime minister Alexis Tsipras late on Monday, denying the latter's request for reconsidering a bailout extension, reports the Financial Times. Tusk said: "After consultations with leaders, in the absence of new elements, I see no willingness to go against the position expressed by finance ministers at their 27 June meeting."
Greece has threatened to seek a court injunction against EU institutions to block its potential exit from the Eurozone, The Telegraph writes.
Former Xstrata boss Mick Davis is reportedly in "serious" talks about buying some of Rio Tinto's Australian coal assets, according to sources cited by the Financial Times.
UK consumer confidence rose in June to its highest level since early 2000, according to GfK's latest survey, as low inflation and stronger pay growth helped spending, writes The Telegraph.
Japan's Sumitomo Mitsui Banking Corp is closing in on the purchase of General Electric's European private-equity finance business and is expected to pay over $2bn, writes The Wall Street Journal.
The Society of Motor Manufacturers and Traders has said that the number of new vehicles being produced in the UK is expected to rise to nearly 2m by 2017, The Independent reports.
Train Fund Management has purchased a 7.24% holding in Pentair and has asked the pump and valve maker to consider buying up rivals to consolidate the fragmented market for the specialised parts, The Wall Street Journal reports.
The Office for National Statistics has revealed that 51.5% of households received more in benefits last year than they paid in taxes, according to The Times. The Guardian cited Office for National Statistics figures that showed that UK households are still £500 a year worse off than before the financial crisis. |
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