UK Market Snapshot
UK markets finished in positive territory yesterday, as the FTSE 100 index reached one-month high, driven by gains in financial sector stocks following hawkish comments by the US Federal Reserve (Fed) Chairwoman, Janet Yellen. Banks, Lloyds Banking Group, Barclays, Royal Bank of Scotland Group and Standard Chartered advanced 1.5%, 1.7%, 2.1% and 2.4%, respectively. Ashtead Group climbed 2.5%, after a leading broker commented that the company’s earnings would significantly jump due to the US President Donald Trump’s promised tax reforms and also upgraded its target price to 2,000.0p from 1,620.0p. Anglo American added 0.3%, after its subsidiary, Anglo American Platinum swung to a profit in 2016 helped by years of restructuring and assets sales. The FTSE 100 advanced 0.5%, to close at 7,302.4, while the FTSE 250 rose 0.2%, to settle at 18,827.2.
US Market Snapshot
US markets ended in the green yesterday, with the major indices closing at a record high level for the fifth consecutive session, as investor sentiment remained buoyed by President Donald Trump’s promise for a massive tax plan in the near future. Pharmaceutical firms, Pfizer, Gilead Sciences and Mylan advanced 2.3%, 3.3% and 4.2%, respectively. Procter & Gamble climbed 3.7%, amid news that Trian Fund Management had acquired more than $3.0 billion stake in the company to become a major shareholder. Bucking the trend, American International Group plunged 9.0%, after the insurer posted a bigger than expected loss for the fourth quarter. H&R Block shed 0.8%, after Trump commented that the company would not be happy with his tax reforms. The S&P 500 gained 0.5%, to settle at 2,349.3. The DJIA rose 0.5%, to settle at 20,611.9, while the NASDAQ advanced 0.6%, to close at 5,819.4.
Europe Market Snapshot
Other European markets closed higher yesterday, supported by a rally in banking sector stocks. Credit Agricole jumped 4.8%, after the bank’s French LCL consumer-banking division posted higher profit for the fourth quarter. Peers, BNP Paribas, Deutsche Bank and Banco Bilbao Vizcaya Argentaria advanced 1.3%, 2.0% and 3.2%, respectively. ABN AMRO Group edged 2.6% up, after the lender reported upbeat profit for the fourth quarter due to higher net interest income and lower provisions for risky loans. Heineken climbed 3.7%, after its earnings rose for 2016 and it forecasted a growth in its sales and profit for the current year. The FTSEurofirst 300 index gained 0.4%, to close at 1,465.1. Among other European markets, the German DAX Xetra 30 rose 0.2%, to close at 11,793.9, while the French CAC-40 advanced 0.6%, to settle at 4,924.9.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning. In Japan, Toshiba has dropped 3.0%, extending its previous session losses, amid report that the company might delay the sale of its prized flash-memory chip unit as it is struggling for cash due to losses in its US nuclear unit. Auto exporters, Nissan Motor, Toyota Motor, Mazda Motor and Honda Motor have declined 0.7%, 1.1%, 1.2% and 1.4%, respectively, following a stronger Japanese Yen. In Hong Kong, financial sector stocks, HSBC Holdings and Bank of China have risen 0.7% and 1.3%, respectively. In South Korea, Samsung Fire & Marine Insurance has tumbled 5.7%, while SK Hynix has advanced 2.8%. The Nikkei 225 index is trading 0.5% lower at 19,334.5. The Hang Seng index is trading 0.4% up at 24,092.3, while the Kospi index is trading 0.2% lower at 2,080.6..
Key Corporate Announcements Today
AGMs
EGMs
ITM Power
Final Ex-Dividend Date
Avon Rubber, Blackrock Income And Growth Investment Trust, Blackrock Throgmorton Trust, Brewin Dolphin Holdings, CC Japan Income & Growth Trust, Henderson Opportunities Trust, Impax Asset Management Group, Imperial Brands, Mobeus Income & Growth 4 Vct, Treatt, Zytronic
Final Dividend Payment Date
Baring Emerging Europe, Cardiff Property, easyHotel
Interim Ex-Dividend Date
AstraZeneca, Fair Oaks Income Fund Limited, Ground Rents Income Fund, Henderson Smaller Companies Inv Trust, Jarvis Securities, Mattioli Woods, Motorpoint Group, Mountview Estates, Puma VCT 10, Puma Vct 8, Puma VCT 9, PZ Cussons, Seneca Global Income & Growth Trust, The Renewables Infrastructure Group Limited, TwentyFour Select Monthly Income Fund Limited, UK Commercial Property Trust
Interim Dividend Payment Date
OPG Power Ventures
Special Ex-Dividend Payment Date
EIH Plc
Quarterly Ex-Dividend Date
BP, M Winkworth, MedicX Fund Ltd., Raven Russia Ltd. Cum Red Pref Shares, Royal Dutch Shell 'A', Royal Dutch Shell 'B'
Key Corporate Announcements for Tomorrow
Final Dividend Payment Date
Blackrock Frontiers Investment Trust, Catco Reinsurance Opportunities Fund Ltd (DI), Catco Reinsurance Opportunities Fund Ltd (DI) C shares, Scottish Inv Trust, Shaftesbury, TUI AG Reg Shs (DI), Victrex plc
Interim Dividend Payment Date
Consort Medical, Fletcher King, Investment Company, Jupiter Dividend & Growth Trust, Jupiter Dividend & Growth Trust Common, Murray International Trust, NB Global Floating Rate Income Fund Ltd GBP, North American Income Trust (The), Starwood European Real Estate Finance Ltd
Special Dividend Payment Date
Halfords Group, Scottish Inv Trust
Key Economic News
Number of unemployment benefits claimants in the UK dropped unexpectedly in January
In the UK, number of unemployment benefits claimants registered an unexpected drop of 42.40 K in January, compared to a revised fall of 20.50 K in the previous month. Markets were anticipating number of unemployment benefits claimants to advance 0.50 K.
Employment in the UK increased in the October-December 2016 period
The UK advanced by 37.00 K in the October-December 2016 period, compared to market expectations of an advance of 22.00 K. Employment had recorded a decline of 9.00 K in the September-November 2016 period.
UK ILO unemployment rate remained steady in the October-December 2016 period
In the October-December 2016 period, the ILO unemployment rate remained unchanged at 4.80% in the UK, meeting market expectations.
UK average earnings including bonus rose less than expected in the October-December 2016 period
In the UK, the average earnings including bonus climbed 2.60% in the October-December 2016 period, less than market expectations for a rise of 2.80%. The average earnings including bonus had registered a rise of 2.80% in the September-November 2016 period.
UK average earnings excluding bonus rose less than expected in the October-December 2016 period
In the October-December 2016 period, the average earnings excluding bonus advanced 2.60% on a YoY basis in the UK, less than market expectations for an advance of 2.70%. In the September-November 2016 period, the average earnings excluding bonus had climbed 2.70%.
UK claimant count rate eased unexpectedly in January
The claimant count rate in the UK dropped unexpectedly to a level of 2.10% in January, lower than market expectations of a steady reading. The claimant count rate had recorded a reading of 2.30% in the previous month.
Euro-zone trade surplus widened in December
The Euro-zone has posted the seasonally adjusted trade surplus of €24.50 billion in December, compared to a revised trade surplus of €22.20 billion in the prior month. Market anticipation was for a trade surplus of €22.00 billion.
Euro-zone trade surplus widened in December
In December, the non-seasonally adjusted trade surplus in the Euro-zone rose to €28.10 billion, from a trade surplus of €25.90 billion in the previous month. Markets were expecting the region to register a trade surplus of €26.00 billion.
Spanish HICP index declined more than expected in January
On a MoM basis, the final harmonised consumer price (HICP) index fell 1.00% in Spain, in January, compared to a rise of 0.50% in the prior month. The preliminary figures had recorded a drop of 0.90%. Market expectation was for the HICP to drop 0.90%.
Spanish CPI advanced as expected in January
On a YoY basis in Spain, the final consumer price index (CPI) registered a rise of 3.00% in January, meeting market expectations. The CPI had climbed 1.60% in the previous month. The preliminary figures had also indicated an advance of 3.00%.
Spanish CPI declined as expected in January
On a MoM basis, in Spain, the final CPI dropped 0.50% in January, in line with market expectations. The preliminary figures had also recorded a drop of 0.50%. In the previous month, the CPI had recorded a rise of 0.60%.
Spanish HICP index advanced less than expected in January
The final HICP registered a rise of 2.90% in Spain on a YoY basis in January, compared to a rise of 1.40% in the previous month. Markets were expecting the HICP to climb 3.00%. The preliminary figures had recorded a rise of 3.00%.
Fed’s Rosengren anticipates three or more rate increases this year
The Federal Reserve (Fed) Bank of Boston President, Eric Rosengren, indicated that the Fed might need to raise interest rates a bit more aggressively than the thrice-per-year pace forecast, as the US economy finds firmer footing.
Fed's Harker expects three rate hikes this year
The Philadelphia Fed President, Patrick Harker stated that three interest rate hikes in 2017 is expected to be the appropriate path for the Fed’s monetary policy, assuming that the US economy stays on track. He further added that US inflation is likely to rise to the Fed's 2.0% target sometime this year or next.
US CPI (ex-food & energy) advanced more than expected in January
On an annual basis, the CPI (ex-food & energy) recorded a rise of 2.30% in January, in the US, compared to an advance of 2.20% in the previous month. Markets were expecting the CPI (ex-food & energy) to advance 2.10%.
US mortgage applications slid in the last week
In the US, mortgage applications slid 3.70% in the week ended 10 February 2017 on a weekly basis. Mortgage applications had climbed 2.30% in the previous week.
US housing market index declined unexpectedly in February
The housing market index recorded an unexpected drop to a level of 65.00 in the US, in February, compared to a reading of 67.00 in the previous month. Markets were expecting the housing market index to record a steady reading.
US retail sales Control Group advanced more than expected in January
Retail sales Control Group in the US advanced 0.40% in January on a monthly basis, more than market expectations for a rise of 0.30%. In the previous month, retail sales Control Group had registered a revised similar rise.
US Total net TIC flows eased in December
In December, total net TIC flows dropped to $42.80 billion in the US. Total net TIC flows had registered a revised reading of $30.20 billion in the prior month.
US manufacturing production rose as expected in January
In the US, manufacturing production rose 0.20% in January on a MoM basis, at par with market expectations. In the prior month, manufacturing production had registered a similar rise.
US capacity utilisation dropped in January
In January, capacity utilisation in the US dropped to 75.30%, compared to market expectations of a fall to a level of 75.40%. In the previous month, capacity utilisation had recorded a revised level of 75.60%.
US CPI (ex-food & energy) advanced more than expected in January
The CPI (ex-food & energy) in the US registered a rise of 0.30% in January on a MoM basis, more than market expectations for a rise of 0.20%. In the prior month, the CPI (ex-food & energy) had recorded a rise of 0.20%.
US CPI rose in January
The non-seasonally adjusted CPI in the US recorded a rise of 0.60% on a monthly basis, in January. CPI had recorded an unchanged reading in the prior month.
US net TIC long term purchases declined in December
Compared to a revised reading of $34.40 billion in the previous month net treasury international capital (TIC) long term purchases fell to a level of $12.90 billion in the US, in December.
US industrial production unexpectedly slid in January
On a MoM basis, industrial production unexpectedly fell 0.30% in the US, in January, lower than market expectations for an unchanged reading. Industrial production had recorded a revised rise of 0.60% in the prior month.
US business inventories advanced as expected in December
In December, business inventories rose 0.40% on a monthly basis in the US, at par with market expectations. Business inventories had registered a revised rise of 0.80% in the prior month.
US CPI advanced more than expected in January
On an annual basis in January, the CPI advanced 2.50% in the US, compared to a rise of 2.10% in the previous month. Market expectation was for the CPI to advance 2.40%.
US NY Empire State manufacturing index rose in February
In February, the NY Empire State manufacturing index in the US advanced to 18.70. The NY Empire State manufacturing index had registered a reading of 6.50 in the previous month.
US mortgage foreclosures fell in 4Q 2016
Mortgage foreclosures eased to 1.53% in the US, in 4Q 2016. In the previous quarter, mortgage foreclosures had registered a level of 1.55%.
US advance retail sales rose more than expected in January
In January, advance retail sales climbed 0.40% in the US on a MoM basis, compared to a revised advance of 1.00% in the prior month. Market anticipation was for advance retail sales to climb 0.10%.
US core CPI advanced in January
The seasonally adjusted core CPI recorded a rise to 250.78 in the US, in January, compared to a revised reading of 250.01 in the previous month.
US retail sales (ex-auto & gas) rose more than expected in January
In the US, retail sales (ex-auto & gas) advanced 0.70% in January on a MoM basis, compared to a revised rise of 0.10% in the prior month. Markets were anticipating retail sales (ex-auto & gas) to advance 0.30%.
US CPI advanced in January
In the US, the non-seasonally adjusted CPI recorded a rise to 242.84 in January, compared to a level of 241.43 in the prior month. Market anticipation was for the CPI to rise to 242.48.
US CPI advanced more than expected in January
In January, on a monthly basis, the CPI climbed 0.60% in the US, compared to an advance of 0.30% in the previous month. Market anticipation was for the CPI to rise 0.30%.
US retail sales ex-autos rose more than expected in January
Retail sales ex-autos registered a rise of 0.80% on a MoM basis in January, in the US, compared to a revised rise of 0.40% in the prior month. Markets were expecting retail sales ex-autos to advance 0.40%.
US mortgage delinquencies rose in 4Q 2016
In 4Q 2016, mortgage delinquencies in the US registered a rise to 4.80%. Mortgage delinquencies had registered a level of 4.52% in the prior quarter.
Canadian manufacturing shipments rose more than expected in December
Manufacturing shipments in Canada advanced 2.30% on a monthly basis in December, higher than market expectations for an advance of 0.30%. In the prior month, manufacturing shipments had registered a revised similar rise.
Canadian existing home sales eased in January
Existing home sales registered a drop of 1.30% on a MoM basis in Canada, in January. Existing home sales had risen 2.20% in the prior month.
Foreign investors turned net buyers of Japanese stocks in the previous week
Foreign investors turned net buyers of ¥175.60 billion worth of Japanese stocks in the week ended 10 February 2017, from being net sellers of a revised ¥247.80 billion worth of Japanese stocks in the previous week.
Japanese investors remained net sellers of foreign bonds in the previous week
Japanese investors remained net sellers of ¥297.40 billion worth of foreign bonds in the week ended 10 February 2017, as compared to being net sellers of a revised ¥126.40 billion worth of foreign bonds in the prior week.
Japanese investors turned net sellers of foreign stocks in the previous week
Japanese investors turned net sellers of ¥96.70 billion worth of foreign stocks in the week ended 10 February 2017, from being net buyers of a revised ¥332.90 billion worth of foreign stocks in the previous week.
Foreign investors turned net sellers of Japanese bonds in the previous week
That foreign investors turned net sellers of ¥99.20 billion worth of Japanese bonds in the week ended 10 February 2017, from being net buyers of a revised ¥244.40 billion worth of Japanese bonds in the prior week.