A Tough Week for the Shanghai Composite, Greece Appears to be Spiralling Out of Control
July 3, 2015 7:30 am
The Shanghai Composite suffered through another miserable session earlier today, closing down by 5.77%. The index has dropped by just over 12% in a 5 day period, although it is still up by almost 14% since the beginning of 2015. The Chinese Government has been implementing a strong drive to get its citizens to invest in Chinese stocks – earlier this week Bloomberg pointed out that China now has more citizens trading the stock market than are member of the Communist Party.
Over in the US, both the Dow and the S&P500 closed down slightly after NonFarm Payroll figures fell slightly short of expectations; at 223k instead of the 233k predicted. The Dow closed down by 0.16% while the S&P500 closed down by just 0.03% US markets are closed today for the US Independence Long Weekend.
Meanwhile in Europe the Greek situation continues to spiral out of control, with the economy shutting down; an increasing number of businesses are refusing to accept credit card purchases, factories are shutting down due to a lack of fuel and blocked import-export access. With doubts about food supplies, the tourist season which normally brings significant funds into the country may be almost nonexistent this year.
A referendum is planned for Sunday; although the Greek government has tried to portray this as a vote on a proposal from Greece’s creditors, the fact that this proposal is no longer on the table means that both nationally and internationally this referendum is increasingly being seen as a choice on whether to stay a part of the Eurozone or breaking away from the Common Currency. USD is currently at around the 1.11 level against the Euro, whilst the Euro is currently at around 0.71 against Sterling. This is not quite as bad as at the beginning of the week just prior to Greece defaulting on its repayment to the IMF, but it’s not far off that four-month low.
In the equities sector, Dixons Carphone has announced plans to expand into the US; it’s teaming up with US mobile carrier Sprint. Dixons Carphone stock is currently down by around 0.5% as investors react to the news.
The Shanghai Composite suffered through another miserable session earlier today, closing down by 5.77%. The index has dropped by just over 12% in a 5 day period, although it is still up by almost 14% since the beginning of 2015. The Chinese Government has been implementing a strong drive to get its citizens to invest in Chinese stocks – earlier this week Bloomberg pointed out that China now has more citizens trading the stock market than are member of the Communist Party.
Over in the US, both the Dow and the S&P500 closed down slightly after NonFarm Payroll figures fell slightly short of expectations; at 223k instead of the 233k predicted. The Dow closed down by 0.16% while the S&P500 closed down by just 0.03% US markets are closed today for the US Independence Long Weekend.
Meanwhile in Europe the Greek situation continues to spiral out of control, with the economy shutting down; an increasing number of businesses are refusing to accept credit card purchases, factories are shutting down due to a lack of fuel and blocked import-export access. With doubts about food supplies, the tourist season which normally brings significant funds into the country may be almost nonexistent this year.
A referendum is planned for Sunday; although the Greek government has tried to portray this as a vote on a proposal from Greece’s creditors, the fact that this proposal is no longer on the table means that both nationally and internationally this referendum is increasingly being seen as a choice on whether to stay a part of the Eurozone or breaking away from the Common Currency. USD is currently at around the 1.11 level against the Euro, whilst the Euro is currently at around 0.71 against Sterling. This is not quite as bad as at the beginning of the week just prior to Greece defaulting on its repayment to the IMF, but it’s not far off that four-month low.
In the equities sector, Dixons Carphone has announced plans to expand into the US; it’s teaming up with US mobile carrier Sprint. Dixons Carphone stock is currently down by around 0.5% as investors react to the news.
Related Posts: