World Markets Live - June 30 - CNBC Live Events

CNBC Live Events

World Markets Live - June 30

We’ll be updating you throughout the day with essential breaking news, data alerts, earnings reports and all the major market movements.

  • Welcome to the World Markets Live Blog, here are your headlines:
    • US stocks catch the bond market's cold, with the big tech names dragging the major averages lower and the Nasdaq on pace for its worst week of the year. The CEO of Morgan Stanley tells CNBC we could see the sell-off last.
    • BUT equities still look poised to lock up a bullish performance year-to-date, with the Nasdaq set to post its best first half since 2009, while oil comes out as one of the big losers, with WTI on pace for its third negative year.
    • Nike strikes a deal it has long avoided, selling its sportswear on Amazon and sending its shares more than 7 percent higher in after-hours trade. 
    • Blue Apron serves up a less than appetizing performance in its market debut, as the meal service vastly underperforms 2017's other big IPOS.
  • Investors have digested economic data out of Japan and better-than-expected official PMI data out of China butTech stocks in South Korea and Japan sold off, following the fall in tech stocks stateside overnight.
    The dollar traded at a fourteen-month low against the euro overnight on expectations of other central banks turning hawkish.
    This all following U.S. markets which fell Thursday as technology's latest drop washed out strong gains from the big banks.
    Shares of Facebook, Amazon, Netflix, Apple and Google-parent Alphabet all dropped more than 1 percent. Chip stocks also fell, with Nvidia and Advanced Micro Devices closing 3.3 percent and 4.8 percent lower, respectively.
    The Dow Jones industrial average fell 168 points with Apple, Boeing, and 3M contributing the most losses. The 30-stock index briefly fell more than 250 points earlier int he session.
    The S&P 500 pulled back 0.9 percent, with information technology sliding 1.8 percent. The S&P also traded below its 50-day moving average for the first time since May 18.The Nasdaq composite lagged, falling 1.4 percent.
  • China's manufacturing activity accelerated more than expected in June, suggesting the world's second-largest economy continued to confound expectations for a slowdown.
    The official manufacturing PMI rose to 51.7, compared with the 51.0 forecast in a Reuters poll.
  • Nike shares soared more than 7 percent in after hours trading after it announced it would sell a limited product assortment on Amazon. It also reported fourth quarter profit and sales that beat expectations. 
    Nike CEO Mark Parker said the company was looking to "improve the consumer experience on Amazon by elevating the way the brand is presented."
    Goldman Sachs says the move could boost Nike's revenues by up to half a billion dollars in the US, if the pilot turns into a meaningful partnership.
  • Crude oil futures are presently on track for their biggest weekly gain since mid-May, ending five weeks of losses. Prices have been underpinned by a decline in U.S. output.

    U.S. crude futures have added more than 4.5 percent this week, while benchmark Brent has gained more than 4 percent.
    The return of upward pressure has been maintained in today's session.
  • U.S. government debt prices have extended losses.

    At the last print, the yield on the benchmark 10-year Treasury note sat higher at around 2.282 percent.
    Bond yields move inversely to prices.
    Yields on German, New Zealand, Australian and Japanese bonds have all moved higher overnight as investors place bets that interest rates are set to rise.
  • President Trump is set to meet his Russian counterpart Vladimir Putin on the sidelines of the G20 Summit in Hamburg next week.
    Their first face-to-face meeting comes amid rising tension, as the investigation into Russian interference in the US Presidential election continues.
    President Trump's national security adviser, H.R. McMaster, sought to downplay the significance of the meeting, saying it "won't be different from our discussions with any other country."
    U.S. President Donald Trump makes his way to board Air Force One before departing from Andrews Air Force Base in Maryland on June 9, 2017.
    Peter Trubowitz, Professor of International Relations, United States Centre at LSE says Trump meeting with Putin is high risk.
    Trubowitz argues that Trump could be well under-prepared given all his domestic issues.
    Trubowitz argues that the Trump administration appears to lack a strategy and a policy to deal with Russia.
  • We are half way through the years and almost all assets are up. 

    Bob Pisani answers the question of will anyone sell, and if they do what will be the assets that go first?

    by david.reid
  • James Bullard, President of the St. Louis Federal Reserve Bank is on set with Karen and Steve.

    Bullard: I have a flat rate path compared to rest of committee

    Bullard has been the St Louis Fed president since 2008 and is currently a non-voting member. He has been described as a "deflation hawk" for favoring policies that would raise inflation to a target of 2 percent per year.

    Bullard tells Steve that the Fed committee has been "too hawkish for the data" over the last 90 days or so.

    The narrative of the committee has been that inflation is creeping back to 2 percent and you can see that in some of the data but since Spring you can see it has gone in the opposite direction.

    Bullard says right now he is "the most dovish member" of the Fed committee.
  • Some European stock calls from JP Morgan.

    The bank has cut the price target on both U.K. brewer and pub chain owner Greene King as well as retailer Debenhams.

    JP Morgan has raised its price target on Portuguese food group, Jeronimo Martins.

    A barmaid pulls a pint in The Harp pub in England. 

  • Delivery Hero arrives on the market today. 

    The takeaway company is set to raise almost 1 billion euros in its Frankfurt IPO, after pricing the listing at 25 euros 50 cents a share. 

    But the loss-making start-up is competing in an increasingly crowded market, with many other delivery companies, as well as big tech players like Amazon and Uber.

    Chris Hayward at Kantar Worldpanel says the takeaway market is still in its infancy and there is room for more players.

    Hayward says in the grocery delivery model is a saturated space and it proves hard to make money. On Amazon, he wonders aloud if the firm is looking to put Wholefoods online.

  • French inflation data has shown a June CPI reading of 0.0 percent month-on-month, equating to 0.7 percent year-on-year.
    That matching forecasts.
    The consumer spending price data for May rose 1.0 percent month-on-month versus a forecast 0.5 percent.
  • German Chancellor Angela Merkel said on Thursday that European countries will work at the upcoming G-20 summit to find "joint solutions" with the US on climate change and other issues.

    Merkel told reporters in Berlin that the "US is an important part of the G-20" and that even though the European summit participants are united in standing by the Paris climate accord, even after the Trump administration has decided to pull out, they would work to find "joint solutions".

    The leaders are meeting ahead of the upcoming G20 summit in Hamburg. 

    The comments came after meetings with her counterparts from France, Italy, the Netherlands, Spain and Norway, and EU representatives.

    Merkel said European G-20 participants are united behind the Paris climate accord despite the American decision to pull out of the deal.

    Regarding the fight against climate change, we talked about it today that we are all standing by the Paris agreement, this is also a very important message to the developing countries. We regret, and I am least speaking for Germany, that the US pulled out of the Paris agreement, but we will of course discuss these questions of climate change in Hamburg.

     - German Chancellor Angela Merkel speaking at a news conference on Thursday after meeting other EU leaders.

  • James Bullard, President of the St. Louis Federal Reserve Bank, shared his thoughts on the Bank of England’s approach to monetary policy.
    They’ve been trying to get to a good policy and I think you;ve got to judge them by results. Are you happy with the inflation rate in the U.K. over the last five years? Are you happy with the economy’s performance? 

    I think they came through Brexit pretty well, at least for the first year. There may still be repercussions, I don’t know. I think overall the track record seems pretty good.
    Earlier this week, BOE Governor Mark Carney signalled that the central bank may need to start removing fiscal stimulus, depending on factors such as wages, inflation and economic reactions to Brexit negotiations.
  • European markets are now open, with the Stoxx 600 moving cautiously higher at the start of Friday's session. 
  • Banks are the best performing sector on the Stoxx 600, continuing a theme of the week. Banks in U.S. markets also performed well.
    Let's take a look at the best and worst performing sectors. 
  • Here's how some of the individual European bourses are performing at the start of Friday's session. The French CAC 40 is a little higher following the release of inflation data this morning, but is still close to the flat line.
  • Old Mutual Asset Management CEO Peter Bain is stepping down. Bain has given up his roles as president, CEO and director effective immediately.
    Current chairman James Ritchie will serve as interim CEO while the board searches for Bain's replacement. Shares in the company are down today; stocks are down almost 2 percent so far this week.
    Meanwhile, Roche is buying diabetes management app-maker "My Sugar" for an undisclosed sum. Roche said the deal will create an open platform that will better respond to the needs of diabetes patients. 

    The deal is the latest move by the Swiss drugmaker to push further into digital health services. Shares are down around 0.7 percent today and down 3 percent for the week.
  • A few pieces of GDP data are out this morning.
    • Danish revised Q1 GDP is confirmed at 0.6 percent for the quarter, and revised up to 2.6 percent year on year, according to Statistics Denmark.
    • The Czech Stats office says Q1 GDP increased 1.5 percent quarter over quarter, and 3 percent year over year. That's an increase on the previous quarter's growth.
  • David Miller, Investment Director at Quilter Cheviot is on set with James Bullard, President, St. Louis of the Federal Reserve Bank.

    On the Draghi speech in Sintra earlier this week, Bullard says he saw little to see a reason for the market to sell-off.

    Miller: Central bankers have become unpredictable 

    Miller, who describes himself as a market practitioner, says he didn't sell-off on the basis of Draghi's words.

    Miller says central bank policy is currently hard for investors to interpret:

    We have got mixed messages from the U.S., mixed messages from the Bank of England and a real level of subtlety from the ECB. 

    Miller says the market wobble last week was because central bank consistency has not been available for strategists to rely on.
  • Maersk is starting to get back to normal business after getting hit hard in this week's cyber attack. The shipping giant says it is taking online orders again. But the company says it's too early to give a specific timeline as to when usual operations will be fully restored.
    Shares are up for the week, but trading a little lower today.
    Meanwhile, Deutsche Bank is downgrading Zalando. The bank now has a sell rating on the stock, and has cut its price target to 35 euros a share, from 36.
    Separately, Nike - one of Zalando's partners - has struck a deal with Amazon to sell products directly on its platform. Shares in Zalando are down more than 1 percent today; the share price is down 8.5 percent over the past 7 days.

  • A profit warning.

    Bayer has announced its crop science division will have to adjust its business forecast for the fiscal year. It says this will have a one-time impact of 300 million to 400 million euros on earnings for full year 2017.
    Bayer adds that stocktaking revealed unexpectedly higher inventories in Brazil. This will also result in adjustments to its forecasts for group sales and earnings.
    Shares in the company are sharply lower on the news.

    The chemicals sector is currently the worst performing sector on the Stoxx 600.


  • On set Covestro CEO Patrick Thomas , Thomas says with cash so cheap people are paying ridiculous multiples for assets in his space and they are going to suffer in years to come. 

    I have seen it before in the cycle, where the chemical industry has made some mega acquisitions in the past and some of those companies no longer exist.

    James Bullard, President, St. Louis Federal Reserve Bank says he is sympathetic with the view that asset prices are inflated because of monetary policy.

    But he checks that but pointing out that the question of whether there are bubbles in the market needs to be continuously reviewed.
    Covestro is a German plastics and chemicals group is on the lookout for a merger. 

    The company has announced that it will return cash to shareholders if it can't find a suitable takeover target within 2 years. 

    Patrick Thomas told shareholders in a statement that Covestro has no reason to hoard liquidity as it eyes 5 billion euros in total operating cash flow.
  • James Bullard, President of the St. Louis Federal Reserve Bank, says concerns that raising Fed rates may disrupt the Chinese economy have faded from 18 months ago.

    Bullard says typically issues about China remain its shaky real estate investment and the less sophisticated banking system.

    Chinese stocks have been grinding higher in recent weeks.

    On U.S. stocks, Bullard says there is some evidence that Tech stocks are a little overvalued. He says the debate there is to what extent will Tech roll over other industries and to what extent will Tech drive productivity.
  • Thialand's current account for May came to $1.13 billion, according to the country's central bank.
    Exports increased 10.6 percent on the year in May, while imports rose 18.2 percent. It's trade surplus came to $2.23 billion.
    The central bank's international reserves did dip slightly to $184.4 billion for the week ending June 23 from 184.5 billion the previous week.
  • These are the main headlines following the market open.
    • European equities see a muted start to trade on the final day of H1, after a weak finish from major U.S. averages. The CEO of Morgan Stanley told CNBC the sell-off could last.
    • Stick to the data. St Louis Fed President James Bullard tells CNBC the Federal Reserve must hold off on a further rate hike until inflation moves higher.
    • Bayer's stock drops as it warns of lower profits. The firm cites challenges in its crop science and consumer health divisions.
    • A hunger for going public. Food takeaway service Delivery Hero makes its stock market debut in Frankfurt.
  • Just over half an hour of Friday session trade has occurred. Here are the shares at the top and bottom of the Stoxx 600. The pan-European index is broadly flat.

  • You cannot imagine how important shale technology has been for the middle part of America. It is even more important because it is so flexible.

    St Louis Fed President James Bullard says U.S. oil production at around 9 million barrels per day has become almost as big as Saudi Arabia and Russia.

    Workers guide a section of drill pipe after its removal from a natural gas well. 

    U.S. President Donald Trump has set out a plan he says will create a "golden era" for U.S. energy. 

    Trump called for a review of America's nuclear power sector and an ease on restrictions on U.S. energy exports. He says the measures will increase American influence abroad.

    We will be dominant. We will export American energy all over the world all around the globe. These energy exports will create countless jobs for our people and provide true energy security to our friends, partners and allies all across the globe.

    - U.S. President Donald Trump 
  • Germany's adjusted unemployment total for June rose by 7,000 to 2.547 million, according to the country's labour office.
    The unemployment total was forecast to fall by 10,000. The result gives the country a jobless rate unchanged at 5.7 percent.
  • The euro is trading lower against several major world currencies. It is down almost a third against the U.S. dollar.
  • These are the top headlines this hour:
    • A muted start for European equities after a weak finish from major U.S. averages.
    • Bayer's stock drops as it warns of lower profits. The firm cites challenges in its crop science and consumer health divisions.
    • A hunger for going public. Food takeaway service Delivery Hero rises in its Frankfurt stock market debut.
  • Some more data released this morning.
    • Norway's June unemployment rate came in at 2.6 percent, matching forecasts, according to the country's Labour Agency. The total for seasonally adjusted unemployed and on job training is 94,609.
    • Italy's Q1 public deficit-to-GDP ratio was 4.3 percent versus 4.9 percent in Q1 2016.
  • Mike Bell, global market strategist at J.P. Morgan Asset Management, says it is a good environment for emerging and European equities and discusses the recent ECB statement.
    There’s been not enough focus on the ECB statement and what exactly Mario Draghi was saying. I think that they are going to taper, because what he was really emphasizing is two things. Firstly that core inflation is not really doing a proper read on what’s happening to underlying inflationary pressures, suggesting underlying inflationary pressures are higher than core inflation suggests. 
  • Delivery Hero has arrived on the market. Shares have risen in its Frankfurt debut, as the takeaway start-up is on track to raise around 1 billion euros. The IPO values the company at 4 billion euros.
    Niklas Östberg, CEO of Delivery Hero, says the company has got off to such a good start because they have built a great service.
    He was asked about his company’s IPO compared Blue Apron, shares of which rose by 1 percent in what was a lacklustre market debut by the U.S. meal-kit provider.
    It’s hard to compare to another company, I know them too little. I know that the investors looking into us were very excited about the strength of the business, about the strength of the growth that we’re having.
    I think people are very excited. We were oversubscribed more than 10 times.
  • Bank of American Merrill has lowered its WTI crude forecast to an average of $47 a barrel this year and $50 per barrel next year. It has also cut Brent to $50 this year and $52 next year.
    The bank said "with ouput set to rise and oil demand disappointing, global balances point to deficits of 210,000 barrels per day in 2017 and 90,000 per day in 2018."
    "We now believe oil stays in contango by year-end, but see a WTI forward anchor at $45-50 and $5 backwardation by next summer."
    Despite this cut, oil prices are improving today.
  • Central bankers have been key in the sell offs this week. From Mark Carney's "likely removal of stimulus", to Mario Draghi's "reflation replacing deflation", investors have been busy trying to interpret the messages from top monetary policymakers.
    These hawkish statements caused currencies to rise and bond yields to climb. The yields on euro zone debt is falling a little today.
  • Bayer has issued a profit warning as a result of unexpectedly high inventories at its Brazilian crop science division.
    Here's what the company had to say.
    At the end of the harvest season in Brazil, regular stocktaking revealed an unexpectedly high channel inventory level of crop protection products. For this reason, Bayer will be working with its customers to initiate measures aimed at normalizing the situation. This will have a one-time effect of EUR 300 million to EUR 400 million on earnings (EBITDA before special items) for the full year 2017.
    The German firm added that it expects earnings to be additionally impacted by unfavourable currency developments. 
    Bayer shares are down more than 4 percent.
  • U.K. GDP growth for the first quarter is confirmed at 0.2 percent quarter on quarter and 2 percent year on year, unchanged from estimates.
    Q1 services growth was revised up 0.1 percent.
    Also, the country's current account deficit increased to £16.895 billion in the quarter from £12.088 billion, equivalent to 3.4 percent of GDP. This was less than the expected deficit of £17.25 billion.
    Business investment increased increased 0.6 percent over the quarter.
  • Bayer shares are trading lower after it issued a profit warning. The German agro-chemicals firm said it was expecting a negative earnings impact from its Brazilian crop science business and unfavourable currency developments.
    CNBC’s Annette Weisbach says the company wasn’t able to sell enough of its product in Brazil.
    Brazil was hit by the worst recession in its history and just barely came back to growth in the first quarter this year.
    It’s not only the crop science unit. They are saying unfavourable currency developments affecting the consumer health division negatively. So we have two of the biggest units of Bayer negatively affected by different reasons.
  • Sterling has slipped against the dollar following U.K. GDP figures. It is down about 0.1 percent and has dipped below $1.30.
    U.K. GDP growth for the first quarter was confirmed at just 0.2 percent quarter on quarter.
    Part of the data release from the ONS showed real household disposable income shrunk 1.4 percent in the last quarter.
  • In political news, European leaders have promised to defend the Paris climate change agreement in next week's G20 summit. German Chancellor Angela Merkel said that Europe should show leadership after Trump's decision to pull out of the deal.
    EU Council President Donald Tusk also said that Europe should be a reference point on the world's biggest challenges. Merkel hosted a meeting to prepare for the G20 summit in Hamburg next week.
    EU leaders sit together for a news conference at the Chancellery in Berlin
    Meanwhile, the German Parliament has voted to legalise same-sex marriage with a strong majority. The vote comes after Chancellor Angela Merkel dropped her opposition to the idea, allowing Christian Democrats to vote as they wish, rather than follow party lines. The move gives full marital rights to same sex couples and allows them to adopt children.
  • Rapper Jay-Z's new album "4:44" is just out, exclusively on the streaming platform he co-founded. Since its 2015 launch, the digital music service Tidal has battled bigger names including Spotify and Apple Music. Tidal's recent tie up with telecom company Sprint is seen as a bid to develop its distribution.
    Zach Fuller, media analyst at MIDiA, says the launch is mainly to appeal to his most engaged fans whom are already on the platform.
    The reason why they do this is obviously it creates bombast, it creates an opportunity for publicity around this. I see this for more artistic reasons; Jay-Z knows that this is where his most hardcore contingent is going to be and he wants to serve those people first.
    Fuller says it is unlikely to bring new subscribers to the service, saying it will remain a niche platform.
  • The flash estimate for euro area inflation for June has been released.
    The inflation rate is seen at 1.3 percent year on year. It was forecast at 1.2 percent. It was 1.4 percent year on year in May, according to Eurostat.
    Core inflation, excluding unprocessed food and energy, came in at 1.2 percent versus 1.0 percent in May.
    Meanwhile, Greek May producer price inflation at +3.9 percent year on year from +7.9 percent in April.
  • The euro is extending losses against the dollar following the euro zone inflation rate data.
    The common currency is now down almost 0.4 percent against its U.S. counterpart.
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