Home' Trinidad and Tobago Guardian : June 21st 2015 Contents JUNE 21 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
STOCKS | SBG9
KEEPING SCORE: Germany's DAX gained
0.1 per cent to 11,110.90 and Britain's FTSE
100 was up 0.3 per cent at 6,730.85. France's
CAC40 climbed 0.7 per cent to 4,838.70. US
markets seemed ready for small gains after
Thursday's advance. Dow and S&P futures
were up 0.1 per cent.
CHINA JITTERS: Chinese shares have
backed away from recent peaks on worries
that a bubble may be building in equity mar-
kets. A flurry of IPOs is accentuating concerns
Meanwhile, the government's moves to curb
risks from margin trading are also weighing
on sentiment. Real estate shares were among
the hardest hit, though the Shanghai Com-
posite Index has still gained nearly 4.6 per
cent in the past month.
GREEK DRAMA: Investors were moni-
toring events in Europe, where Greece and its
international lenders are deadlocked in bailout
talks and an emergency summit meeting is
planned for next week.
Greece needs more loans from its creditors
before June 30, when its current bailout pro-
gramme expires and a 1.6 billion euro ($1.8
billion) debt repayment is due. A default could
result in Greece leaving the euro currency bloc,
dealing a blow to the project. On Friday, Greece
was hoping to get temporary support for its
banks from the European Central Bank while
the bailout talks continue.
ASIA S DAY: Japan's Nikkei 225 rose 0.9
per cent to 20,174.24 and the Hang Seng in
Hong Kong added 1.1 per cent to 26,984.05.
South Korea's Kospi gained 0.3 per cent to
2,046.96 and Australia's S&P/ASX 200 jumped
1.3 per cent to 5,597.00. The Shanghai Com-
posite Index tumbled 6.4 per cent to 4,478.36
and the smaller Shenzhen Composite Index
lost 5.9 per cent to 2,742.18.
THAILAND SCARE: Public health officials
confirmed that dozens of people were under
observation after a 75-year-old man who trav-
elled to Bangkok from Oman for treatment of
a heart ailment was confirmed to have the
MERS virus. The Middle East respiratory syn-
drome has killed 24 people and sickened more
than 160 in South Korea in the biggest outbreak
outside the region where it was first identified
in 2012. Thailand's SET index slipped 0.6 per
cent to 1,498.37.
CURRENCIES: The dollar rose to 123.11
yen from 123.04 yen on Thursday. The euro
fell to $1.1313 from $1.1371.
ENERGY: Benchmark U.S. crude fell 79
cents to $59.66 a barrel in electronic trading
on the New York Mercantile Exchange. It rose
53 cents to close at $60.45 a barrel in New
York on Thursday. AP
Global stocks rise despite plunge in China, Greece standoff
A broker sits under he curve of the German stock index DAX at the stock market in Frankfurt,
Germany, Friday, June 19, 2015. AP
A rally that pushed a key index to a record
high petered out on Friday.
Despite the losses, the market still ended
with its best week in nearly two months after
getting a boost from the Federal Reserve on
Wednesday. Policymakers signaled that they
were in no hurry to raise interest rates from
historically low levels.
"Many sectors and stocks have had a good
few days, so some of it is (down to) people
taking off some of their profits," said JJ Kinahan,
TD Ameritrade's chief strategist about Friday's
The Standard & Poor's 500 index lost 11.48
points, or 0.5 per cent, to 2,109.76. For the
week the index was up 0.8 percent, its best
gain since the week ending April 24.
The Dow Jones industrial average fell 99.89
points, or 0.6 per cent, to 18,015.95.
The Nasdaq composite slid 15.95 points, or
0.3 per cent, closing at 5,117. That's just below
its record high of 5,132.95 set on Thursday.
An impasse in bailout negotiations between
Greece and its creditors and worries about a
stock bubble in China weighed on the market.
Utilities and financials stocks were among the
biggest decliners. The price of oil fell, ending
the week nearly flat.
Investors spent much of the week focused
on the Federal Reserve's next move on interest
The market got some reassurance from the
central bank on Wednesday, when the Fed
suggested it wanted to see more improvement
in the economy and signs of inflation before
raising rates. The low rates have helped drive
the bull market in stocks.
Clarity on Greece's ongoing debt drama has
been more elusive.
Greece and its lenders remain deadlocked
in their attempts to hammer out a pact for
the debt-stricken nation. Greece needs more
loans from its creditors before June 30, when
its current bailout program expires and a 1.6
billion euro ($1.8 billion) debt payment is due.
On Friday, the European Central Bank agreed
to provide temporary support for Greece's
banks ahead of an emergency summit meeting
next week. That meeting could determine
whether Greece still has a future in the euro.
Greece's main stock index slumped 11 percent
for the week.
Traders also had their eye on China, where
the main stock index plunged Friday, raising
concerns that a bubble in the market may
have burst. The Shanghai Composite Index
tumbled 6.4 per cent and is 13 percent lower
for the week. The index has more than doubled
in the past year.
A series of disappointing sales forecasts also
Hershey fell 3.5 per cent after the chocolate
and candy maker cut its revenue outlook for
the year because of weak demand in China.
The company also said it plans to cut about
300 jobs by the end of the year. The stock
lost $3.22 to $89.04.
CarMax fell 3.7 per cent after the used car
dealership chain reported fiscal first-quarter
sales that fell short of forecasts. The stock
shed $2.69 to $69.27.
Investors welcomed news that activist
investor firm Jana partners has taken a 7.2
percent stake in ConAgra Foods.
Jana said ConAgra's results have been dis-
appointing since it bought Ralcorp, the owner
of Post cereals, in January 2013, and asked the
packaged food company to extend the deadline
for nominating board candidates.
ConAgra, the maker of Slim Jim meat snacks
and Swiss Miss hot chocolate drinks, jumped
$4.25, or 10.9 per cent, to $43.37.
The dollar fell to 122.61 yen from 123.04
yen on Thursday. The euro fell against the
dollar to $1.1357 from $1.1371.
In energy trading, benchmark U.S. crude
fell 84 cents to close at $59.61 a barrel in New
York. Oil finished last week at $59.96. Brent
crude, a benchmark for international oils used
by many U.S. refineries, fell $1.24 to close at
$63.02 in London.
In other energy futures trading, wholesale
gasoline fell 5.1 cents to close at $2.059 a gallon.
Heating oil fell 4.8 cents to close at $1.867 a
gallon. Natural gas rose 3.9 cents to close at
$2.816 per 1,000 cubic feet.
In metals trading, the price of gold was little
changed at $1,201.90 an ounce. Silver dropped
4.4 cents to $16.11 an ounce. Copper declined
3.7 cents to $2.57 a pound.
U.S. government bond prices rose. The yield
on the 10-year Treasury note, which falls when
prices rise, dropped to 2.26 percent from 2.32
percent late Thursday.
US stock rally peters out
market still ends week higher
Screens by the Market Intelligence Desk show an intraday high for the Nasdaq Composite
index, at the Nasdaq MarketSite, in New York. US stock markets rose sharply in afternoon
trading Thursday, putting the Nasdaq composite on track to close at an all-time high. (AP)
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