Euromarkets Make Small Losses
The European indices started with small losses today with the investors trading with caution in view of the Greek referendum on Sunday.
The British FTSE 100 index fell by 0.17% at 6,619 points, the German DAX recorded fall of 0.25% at 11,072 points and the French CAC 40 moved downward by 0.22% at 4,825 points.
European STOXX 600 index fell by 0.11% at 385.02 points.
On the board, K & S AG NA O.N. (XETRA:SDFGN) was up by 2.2% after the announcement of Potash that it will try to convince the German company to accept the offer for acquisition.
In contrast, Rio Tinto (LONDON:RIO) Group fell by 0.8% and BHP Billiton (LONDON:BLT) by 1%, as the prices of iron fall towards the biggest weekly decline since last April. The cause of the fall is the reduction of activity in China.
Marginal Rise In Tokyo
The Japanese stock market closed positively today by recovering the losses that were recorded earlier thanks to the rise of the banking sector and other equity large cap companies.
The uncertainty about the developments in Greece regarding the referendum on Sunday, limited gains in Tokyo.
Nikkei rose by 0.1% at 20,539.79 points while intraday it had fell almost by 0.4%.
The broader index TOPIX closed with an increase of 0.2% at 1,652.09 points, while the JPX-Nikkei Index 400 rose by 0.3% at 14,925.02 points.
Eurozone: Markit’s PMI Index Reached A 4-Year High
The economic growth in the Eurozone climbed to a 4-year high in the second quarter, as it was announced today by the research company Markit.
In particular, the final PMI index for the manufacturing sector and services rose at 54.2 points in June from 53.6 points in the previous month and exceeded the initial estimation, as it was announced by the research company.
The strengthening of June led the average measurement for the second quarter to a 4-year high, according to the data of Markit.
The economic growth accelerated in Germany, Italy and France in June and climbed to a two-month high in Germany and to a high of 12 and 46 months in Italy and France respectively.
The PMI index for services rose at 54.4 points in June from 53.8 points in the previous month and confirmed the original estimation. The production has now reached 23 consecutive months of rise.
Chris Williamson, Chief Economist at Markit, said: “While uncertainty caused by the Greek debt crisis rules out any imminent hike in interest rates, the post-election rebound in service sector business activity adds to the likelihood of the Bank of England starting to nudge rates higher later this year. The survey data are indicating an acceleration of economic growth to 0.5% in the second quarter, up from 0.4% in the first three months of the year.
“However, growth will have to accelerate further in the second half of the year to meet the Bank’s 2015 growth forecasts of 2.5%, and faster growth is by no means assured. Hiring and inflows of new business both slowed in June, and an escalating Greek crisis and ‘Grexit’ has the potential to destabilize economic growth.
“Growth is looking increasingly unbalanced. The recent weakness of the manufacturing PMI means industrial production looks likely to have declined in the second quarter, leaving the economy once again dependent on the service sector to sustain any growth."