European Markets Pulled Back Again On Greek Uncertainty

(RTTNews) - The majority of the European markets ended Tuesday's session in negative territory. The markets struggled again today due to the continued uncertainty surrounding the situation in Greece.

Greece faces a crucial 1.6 billion euros payment to the International Monetary Fund today, which Greek Finance Minister Yanis Varoufakis has confirmed the country will not make. Failing to pay the IMF will not immediately lead to a default, as the lender would describe that Greece is in arrears.

Meanwhile, last minute efforts to prevent Greece from a potential default or an exit from the Eurozone are underway. The Greek government has submitted a request for a two-year bailout with the European Stability Mechanism (ESM) to fully cover its financing needs, along with debt restructuring.

"From the first we made clear that the decision to call a referendum was not the end but the continuation of a negotiation seeking better terms for the Greek people," the report said.

This would imply the country is seeking a third rescue as its second bailout programme ends on today.

The Euro Stoxx 50 index of eurozone bluechip stocks decreased by 0.82 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 1.04 percent.

The DAX of Germany dropped by 1.25 percent and the CAC 40 of France fell by 1.63 percent. The FTSE of the U.K. declined by 1.50 percent and the SMI of Switzerland finished lower by 0.99 percent.

In Frankfurt, K+S increased by 4.37 percent. Handelsblatt reported that the offer from Potash Corp. of Saskatchewan was too low. Societe Generale cut the stock to "Hold" from "Buy."

Hugo Boss declined by 1.72 percent, after Merrill Lynch cut the stock to "Neutral" from "Buy."

ThyssenKrupp surrendered 2.33 percent and Infineon Technologies finished lower by 1.80 percent.

In Paris, LVMH dropped by 3.94 percent, after Merrill Lynch cut the stock to "Underperform."

Total decreased by 2.40 percent and Technip weakened by 1.54 percent.

In London, mining stocks were among the weakest performers, as metal prices declined. BHP Billiton decreased by 4.03 percent and Anglo American fell by 3.16 percent. Rio Tinto dropped by 2.88 percent and Glencore lost 2.95 percent. Randgold Resources also weakened by 2.61 percent.

Tesco surrendered 2.83 percent and J. Sainsbury fell by 3.25 percent.

Eurozone inflation slowed in June largely due to another sharp fall in energy prices, indicating that the central bank has to do more to achieve its inflation target. Inflation eased to 0.2 percent in June, in line with economists' forecast, from 0.3 percent in the prior month, flash data from Eurostat showed Tuesday.

Eurozone unemployment rate remained unchanged at the lowest level seen since early 2012 in May, official data revealed Tuesday. As expected by economists, the jobless rate held steady at 11.1 percent in May, Eurostat reported. This was the lowest rate recorded in the euro area since March 2012.

Germany's retail sales grew for the second straight month in May albeit at a slower pace compared to April, data from Destatis showed Tuesday. Retail sales turnover advanced 0.5 percent from April, when it was up 1.3 percent. This was the second consecutive increase. Sales were expected to remain flat in May.

Germany's unemployment rate held steady in May, figures from Destatis showed Tuesday. The jobless rate came in at an adjusted 4.7 percent in May, the same rate as in the previous month. In the same month of the previous year, the rate was 5.0 percent.

German unemployment declined less than expected in June, data from the Federal Labor Agency reportedly revealed Tuesday. The number of people out of work fell 1,000 in June from the prior month, while it was forecast to drop by 5,000.

The jobless rate remained unchanged at 6.4 percent in June, in line with expectations.

French consumer spending increased for the first time in three months in May, the statistical office Insee reported Tuesday. Consumer spending gained 0.1 percent month-on-month in May, in contrast to the expectations for a 0.2 percent fall. Spending was flat in April and down 0.6 percent in March.

France's producer prices declined again in May largely due to a sharp fall in refined petroleum product prices, the statistical office Insee said Tuesday. Producer prices in the French market decreased 1.7 percent in May from last year. Prices in foreign market climbed 0.6 percent, while prices in total industry declined 1.2 percent.

The U.K. economy grew more than previously estimated in the first quarter, the Office for National Statistics showed Tuesday. Gross domestic product gained 0.4 percent sequentially, revised up from the 0.3 percent growth estimated on May 28.

Consumer confidence in the United Kingdom surged in June, the latest survey from marketing research company GfK revealed on Tuesday, with an index score of +7. That handily beat forecasts for a reading of +2, and it was up from +1 in May.

Home prices in major U.S. metropolitan areas unexpectedly grew at a slower annual rate in the month of April, according to a report released by Standard & Poor's on Tuesday. The report said the S&P/Case-Shiller 20-City Composite Home Price Index rose 4.9 percent year-over-year in April, reflecting a modest slowdown from the 5.0 percent growth seen in March.

The slowdown came as a surprise to economists, who had expected the annual rate of growth by the index to accelerate to 5.4 percent.

While MNI Indicators released a report on Tuesday showing a notable increase by its Chicago business barometer in the month of June, the index continued to point to a contraction in regional business activity. The report said the Chicago business barometer climbed to 49.4 in June from 46.2 in May, but a reading below 50 continues to indicate a contraction. Economists had expected the index to rise to 50.6.

After reporting a modest improvement in U.S. consumer confidence in the previous month, the Conference Board released a report on Tuesday showing that its consumer confidence index increased by much more than expected in June.

The report said the consumer confidence index jumped to 101.4 in June from a downwardly revised 94.6 in May. Economists had expected the index to rise to 97.4 from the 95.4 originally reported for the previous month.