Home' Trinidad and Tobago Guardian : June 14th 2015 Contents JUNE 14 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG7
Asetback in talks
between Greece and
its creditors helped
knock the stock mar-
ket lower on Friday,
amid renewed con-
cerns that the country
could default on its
Despite the drop, the Standard & Poor s
500 index managed to eke out a one-point
gain for the week, snapping a two-week slump.
An unexpected decision by the International
Monetary Fund to walk away from talks with
Greece spurred the selling. At a summit meet-
ing in Brussels late Thursday, the IMF pulled
its negotiators out of talks with Greece, saying
there had been no progress and that major
differences remained on key issues. Without
a deal by the end of the month, Greece faces
the prospect of going bankrupt and dropping
the euro currency.
Markets are likely to make sudden turns
until Greece and its creditors reach a deal,
said Ninh Chung, head of investment strategy
at SVB Asset Management. Earlier this week,
stocks on both sides of the Atlantic rallied on
reports of progress in the talks.
"There had been optimism over Greece,"
Chung said, "and now it seems like we ve
had a complete 180."
The S&P 500 slipped 14.75 points, or 0.7
per cent, to close at 2,094.11. The Dow Jones
industrial average fell 140.53 points, or 0.8
per cent, to 17,898.84, and the Nasdaq com-
posite lost 31.41 points, or 0.6 per cent, to
The losses were modest but broad: All 30
companies in the Dow and all 10 industries
in the S&P 500 finished with losses.
Speculation over Greece s fate and the Fed-
eral Reserve s first interest rate increase have
weighed on markets over recent weeks. Many
think an improving US economy will push
the Fed to raise its benchmark interest rate
later this year for the first time since the Great
Recession. The Fed s ultra-cheap interest rates
have helped fuel the six-year bull market in
"I m not sure the downside risk with Greece
is as big as investors believe, but it s caught
investors attention," said Jack Ablin, chief
investment officer at BMO Private Bank. "It s
the same with the Fed tightening."
Major indexes in Europe slumped on Friday,
wiping out gains from earlier in the week.
Greece s market fell the most, with the main
Athens index down 6 per cent. Germany s
DAX sank 1.2 per cent, and the CAC-40 in
France finished with a loss of 1.4 per cent.
Britain s FTSE 100 lost one per cent.
In Asia, Japan s Nikkei 225 inched up 0.1
per cent. In China, the Shanghai composite
index advanced 0.9 per cent, and Hong Kong s
Hang Seng rose 1.4 per cent.
Back in the US, shares of Wingstop vaulted
61 per cent in their first day of trading as a
public company. The chicken-wings chain
raised US$110.2 million in its initial public
offering late Thursday, selling shares at US$19
each. Wingstop soared US$11.59 to US$30.59.
Government bond prices wavered, finishing
the day slightly lower. The yield on the10 -
year Treasury inched up to 2.39 per cent from
2.38 per cent the day before.
In metals trading, gold fell US$1.20 to settle
at US$1,179.20 an ounce, while silver slipped
14 cents to $15.83 an ounce. Copper picked
up a penny to US$2.68 a pound.
Oil fell for a second straight day after reach-
ing a high for the year on Wednesday. Bench-
mark crude oil sank 81 cents to settle at
US$59.96 a barrel. Brent crude, an interna-
tional benchmark, dropped US$1.24 to
US$63.87 a barrel.
In other trading on the New York Mercantile
--- Wholesale gasoline fell 1.7 cents to
US$2.121 a gallon
--- Heating oil declined 3.18 cents to
US$1.889 a gallon
--- Natural gas dropped 7.5 cents to US$2.75
per 1,000 cubic feet. AP
How the Dow Jones
industrial average fared
For the day:
The Dow Jones industrial average in-
creased 38.97 points, or 0.2 per cent, to
The Standard & Poor's 500 index climbed
3.66 points, or 0.2 per cent, to 2,108.86.
The Nasdaq composite rose 5.82 points,
or 0.1 per cent, to 5,082.51.
For the week:
The Dow is up 189.91, or 1.1 per cent.
The S&P 500 is up 16.03, or 0.8 per cent.
The Nasdaq is up 14.05, or 0.3 per cent.
For the year:
The Dow is up 216.30 points, or 1.2 per
The S&P 500 index is up 49.96 points, or
2.4 per cent.
The Nasdaq is up 346.45 points, or 7.3 per
Asian stock markets were little changed Friday
as lack of progress in bailout negotiations
between Greece and its creditors dampened the
positive impulse from upbeat US retail and jobs
KEEPING SCORE: Japan s Nikkei 225 added less than 0.1
per cent to 20,393.32 and South Korea s benchmark inched
up 0.1 per cent to 2,058.24.
Hong Kong s Hang Seng rose 0.5 per cent to 27,042.00
while Australia s S&P/ASX 200 edged down 0.2 per cent to
5,545.40. Stocks in Shanghai and Singapore were nearly flat.
IMF WALKOUT: The International Monetary Fund said
there was no progress in recent Greece bailout talks and pulled
negotiators out of the meetings. The move increases pressure
on Athens to compromise but markets were worried that the
outstanding differences between Greece and its creditors would
lead to the country defaulting on its debt.
A possible consequence of a default is Greece leaving the
euro currency bloc. The country faces a June 30 deadline for
a debt payment and a meeting of the eurozone s finance min-
isters, known as the eurogroup, from June 18-19 may be a
decisive milestone in the saga.
ANALYST S TAKE: "The fact the IMF walked out of talks
and flew straight back to the States doesn t help sentiment
or give you confidence a deal will be done," said Evan Lucas,
a market strategist at IG. "This will get messy."
ENERGY: Benchmark US crude was down 24 cents to
US$60.53 per barrel in electronic trading on the New York
Mercantile Exchange. The contract closed 66 cents lower at
$60.77 a barrel in Nymex floor trading on Thursday. Brent
crude, a benchmark for international oils, fell 20 cents to
CURRENCIES: The euro rose to US$1.1262 from US$1.1246.
The dollar weakened to 123.44 yen from 123.55 yen.
Specialist Peter Giacchi works at the post that handles Reynolds American, on the floor of the
New York Stock Exchange, Thursday, June 11, 2015. Reynolds American, the company behind
Camel and Pall Mall cigarettes, said its US$25 billion deal to buy rival Lorillard will be completed
on Friday. (AP
Asia stocks drift as Greece dampens impact of strong US data
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