UK Market Snapshot
UK markets finished in negative territory yesterday, amid strength in British Pound. Paddy Power Betfair tumbled 4.4%, after the company stated that it would not achieve its top end forecasted targets following Donald Trump’s unexpected US election win and several punter-friendly outcomes at the year end. Multinational companies, Unilever, GlaxoSmithKline and AstraZeneca dropped 0.4%, 1.3% and 1.5%, respectively. Banks, Lloyds Banking Group, Barclays and Royal Bank of Scotland Group slipped 1.0%, 1.3% and 1.4%, respectively. On the positive side, Hochschild Mining surged 12.2%, after the company reached an agreement with a local community at its Pallancata silver and gold mine to restart mining. Precious metal miners, Randgold Resources and Fresnillo climbed 1.4% and 3.4%, respectively, tracking gains in gold prices. The FTSE 100 declined 0.7%, to close at 7,151.2, while the FTSE 250 fell 0.2%, to settle at 18,116.0.
US Market Snapshot
US markets closed lower yesterday, weighed down by a decline in industrial and energy shares, as caution prevailed amongst investors amid uncertainty around Donald Trump’s policies. QUALCOMM plunged 12.7%, after Apple filed a $1.0 billion lawsuit against the company alleging it of charging excessive royalties. Aetna dropped 2.7%, after a federal judge rejected its plan to buy Humana, up 2.2%, antitrust grounds. AMC Entertainment Holdings fell 0.6%, after the company agreed to acquire Nordic Cinema Group Holding for $929.0 million. Bucking the trend, Apple added 0.1%, after news that the company may team up with Foxconn Technology Group for setting a display-panel manufacturing facility in the US with an investment of $7.0 billion that would create up to 50,000 new jobs. The S&P 500 slipped 0.3%, to settle at 2,265.2. The DJIA shed 0.1%, to settle at 19,799.9, while the NASDAQ slid marginally, to close at 5,552.9.
Europe Market Snapshot
Other European ended in the red yesterday, after US President, Donald Trump, signed an order to withdraw from the Trans-Pacific Partnership (TPP) trade deal. Philips Lighting dropped 2.7%, after the company announced its plan to return €300.0 million to its investors over the next two years through share disposals by its main shareholder, Royal Philips. Rhoen-Klinikum shed 0.5%, after Stephan Holzinger was appointed as the Chairman of the management board. On the flipside, Assicurazioni Generali advanced 3.9%, amid news that Allianz and Intesa Sanpaolo, both down, 1.0% and 2.9%, respectively, together are considering a takeover bid for the company. The FTSEurofirst 300 index declined 0.5%, to close at 1,425.5. Among other European markets, the German DAX Xetra 30 slid 0.7%, to close at 11,545.8, while the French CAC-40 shed 0.6%, to settle at 4,821.4.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning, as the overnight decision by Trump to pull US out of the TPP deal dented investor sentiment. In Japan, auto exporters, Honda Motor, Mitsubishi Motor and Mazda Motor have fallen 1.6%, 1.8% and 2.2%, respectively. Oil stocks, Japan Petroleum Exploration, JX Holdings and Inpex have slipped 0.2%, 0.8% and 2.0%, respectively. In Hong Kong, energy producers, China Petroleum & Chemical, PetroChina and Sinopec Oilfield Service have advanced 1.5%, 1.6% and 2.0%, respectively, on higher crude oil prices. In South Korea, Samsung Electronics has gained 0.2%, after posting a 50.0% jump in its operating profit for the fourth quarter. The Nikkei 225 index is trading 0.2% lower at 18,844.4. The Hang Seng index is trading 0.3% up at 22,969.4, while the Kospi index is trading 0.1% down at 2,063.6.
Key Corporate Announcements Today
AGMs
Baring Emerging Europe, Edinburgh Worldwide Inv Trust, Keystone Inv Trust, Lowland Investment Co, Marston's, Mitchells & Butlers, Standard Life European Private Equity Trust, BMR Group
EGMs
Hellenic Telecom Industries SA ADS
Final Dividend Payment Date
Quarterly Ex-Dividend Date
Marsh & Mclennan Cos Inc.
Trading Announcements
Dixons Carphone, easyJet, Genel Energy
Key Corporate Announcements for Tomorrow
AGMs
Henderson Alternative Strategies Trust, Octopus VCT 3, Octopus VCT 4, Polo Resources Ltd. (DI), Renew Holdings, Schroder Asia Pacific Fund, McCarthy & Stone, Patisserie Holdings, WH Smith
EGMs
OPG Power Ventures, Air Partner, e2v technologies
Final Dividend Payment Date
Diploma, Majedie Investments
Interim Ex-Dividend Date
Tongaat-Hulett Ltd.
Interim Dividend Payment Date
ICAP, Real Good Food, Zhejiang Expressway Co 'H' Shares
Trading Announcements
Antofagasta, BHP Billiton, McCarthy & Stone, Restaurant Group, WH Smith
Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0430GMT today, Brent Crude Oil one month futures contract is trading 0.47% or $0.26 higher at $55.49 per barrel, ahead of the American Petroleum Institute weekly oil inventory data, scheduled to be released later today. Yesterday, the contract declined 0.47% or $0.26, to settle at $55.23 per barrel, as concerns over rising US drilling activity outweighed support from Saudi Arabia’s energy minister.
Gold
At 0430GMT today, Gold futures contract is trading 0.07% or $0.90 higher at $1216.50 per ounce. Yesterday, the contract advanced 0.89% or $10.70, to settle at $1215.60 per ounce, reaching nearly 10-week high level, as the US Dollar declined against its peers amid concerns over the lack of clarity about Trump’s policies.
Currency
At 0430GMT today, the EUR is trading 0.10% lower against the USD at $1.0750, ahead of the Euro-zone’s and Germany’s Markit manufacturing and services PMI, both for January, due to release in a few hours. Yesterday, the EUR strengthened 0.58% versus the USD, to close at $1.0761. In economic news, the Euro-zone’s consumer confidence index rose less than expected in January.
At 0430GMT today, the GBP is trading 0.20% lower against the USD at $1.2506, ahead of EU membership court ruling along with UK’s public sector net borrowing data for December, slated to release today. Additionally, market participants will monitor the US Markit manufacturing PMI and Richmond Fed manufacturing index, both for January, set to release later today. Yesterday, the GBP climbed 1.27% versus the USD, to close at $1.2531, on expectations that the UK Government would lose the Brexit case ruling in the Supreme Court. The greenback weakened against the basket of currencies, as fear prevailed amongst investors over Donald Trump promoting a protectionist agenda.
Fixed Income
In the US, long term treasury prices rose and pushed yields lower, with investors seeking more clarity on President Donald Trump’s fiscal-policy plans. Yesterday, yield on 10-year notes plummeted 7 basis points to 2.41%, while yield on 2-year notes lost 4 basis points to 1.16%. Meanwhile, 30-year bond yield tumbled 6 basis points to 2.99%.
Key Economic News
Euro-zone consumer confidence index climbed in January
In the Euro-zone, the preliminary consumer confidence index recorded a rise to -4.90 in January, compared to market expectations of an advance to a level of -4.80. In the prior month, the consumer confidence index had registered a level of -5.10.
Bundesbank: German inflation likely to reach 2% in January
The Bundesbank in its monthly report stated that German inflation could hit 2% in January due to a considerable increase in the daily average prices of oil products, thus hitting the European Central Bank's elusive target for the first time in four years.
Swiss M3 money supply advanced more than expected in December
On an annual basis, M3 money supply recorded a rise of 3.00% in December, in Switzerland, compared to a revised rise of 1.80% in the prior month. Market expectation was for M3 money supply to advance 2.50%.
Canadian wholesale sales rose less than expected in November
On a monthly basis in Canada, wholesale sales climbed 0.20% in November, lower than market expectations for an advance of 0.50%. Wholesale sales had risen 1.10% in the prior month.
Japanese coincident index recorded a rise in November
The final coincident index rose to a level of 115.00 in November, in Japan. The coincident index had recorded a reading of 113.50 in the previous month. The preliminary figures had recorded an advance to 115.10.
Japanese manufacturing PMI advanced in January
The flash manufacturing PMI advanced to 52.80 in January, in Japan. In the prior month, manufacturing PMI had recorded a reading of 52.40.
Japanese all industry activity index rose less than expected in November
The all industry activity index climbed 0.30% on a monthly basis in Japan, in November, lower than market expectations for an advance of 0.40%. In the previous month, the all industry activity index had registered a revised unchanged reading.
Japanese supermarket sales declined in December
Supermarket sales in Japan recorded a drop of 2.00% in December on a YoY basis. Supermarket sales had risen 0.80% in the previous month.
Japanese leading economic index recorded a rise in November
In Japan, the final leading economic index recorded a rise to 102.80 in November, compared to a reading of 100.80 in the previous month. The preliminary figures had recorded an advance to 102.70.
Chinese leading economic index advanced in December
In December, on a monthly basis, the leading economic index in China registered a rise of 0.80%. In the previous month, the leading economic index had risen 1.00%.