Market Action

• The major U.S. equity indices posted small losses on the week despite some pockets of strength within the market. The managed care and athletic apparel industries provided strong results this week thanks to a coming consolidation in the former and encouraging earnings in the latter.

• U.S. bond yields quickly reversed the decline of the past two weeks. The 30-year yield closed Friday at its highest point in 2015 as markets eye a possible rate increase from the Federal Reserve in September.

• Greek Prime Minister Alexis Tsipras announced that a referendum on the creditors’ latest offer to Greece, shocking onlookers. Greece will vote on July 5^th whether or not to accept the demands of the troika. All government ministers have expressed a plan to vote against a deal.

• China’s stock markets have rapidly cooled off, falling 20% since their all time highs two weeks ago. Morgan Stanley issued a public warning to investors not to invest in Chinese shares, stating they see a risk of a further 30% slide.

• Housing data in the U.S. continues to come in very strong. Demand for housing is elevating analysts’ confidence in the general recovery as growth estimates for Q2 continue to rise.

• European PMIs reached their highest level in four years according to data released Tuesday. While several outlets affirm an improved economic climate in Europe the same cannot be said for China where PMI levels still show contraction.

• Capital flows out of Emerging Markets have maintained high levels over the past few weeks. Concerns about growth in many emerging economies, such as Brazil and Turkey, coupled with rising rates in the U.S. are encouraging investors to pull capital out.

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