UK Market Snapshot
UK markets finished in negative territory on Friday, led by losses in banking and mining sector stocks. Royal Bank of Scotland Group tumbled 4.5% after the bank reported a ninth consecutive net loss in 2016 and announced that it would cut another £750.0 million in operating expenses next year. Standard Chartered dropped 2.7%, after its profit for 2016 missed analysts’ expectations as its efforts to clean up conduct issues and losses on its plans to exit from private-equity business weighed on the bank. Barclays dipped 1.4%, amid concerns over litigation in the US. Miners, Antofagasta, BHP Billiton and Rio Tinto slipped 2.1%, 2.9% and 3.0%, respectively. On the flipside, William Hill advanced 2.5%, after the company reported a rise in its revenue in 2016. The FTSE 100 declined 0.4%, to close at 7,243.7, while the FTSE 250 fell 0.3%, to settle at 18,588.6.
US Market Snapshot
US markets closed in the green on Friday, after the DJIA index closed higher for the eleventh straight session. RH rallied 24.4%, after the retailer posted upbeat results for the fourth quarter. Foot Locker surged 9.4%, after the company reported better than expected earnings and same store sales for the fourth quarter. Nordstrom jumped 5.7%, after its earnings for the fourth quarter surpassed analysts’ expectations. On the losing side, Hewlett Packard Enterprise tumbled 6.9%, after the company trimmed its earnings forecast for 2017 as its sales for the first quarter came in lower than expected. Banks, JP Morgan Chase, Goldman Sachs Group and Goldman Sachs Group declined 0.9%, 1.4% and 1.5%, respectively. The S&P 500 gained 0.2%, to settle at 2,367.3. The DJIA advanced 0.1%, to settle at 20,821.8, while the NASDAQ rose 0.2%, to close at 5,845.3.
Europe Market Snapshot
Other European markets ended in the red on Friday, as caution prevailed amongst investors over the upcoming presidential election in France and uncertainty of tax policy changes under Donald Trump. Saipem tumbled 6.8%, after the company reported lower than expected adjusted profit for the fourth quarter. Vivendi dropped 3.9%, after the Italian prosecutors opened an investigation against the Chairman, Vincent Bollore, over alleged market manipulation in the company’s stake in Mediaset, down 1.3%. BASF slipped 2.5%, after the company offered dismal outlook for 2017. Nordex plunged 23.6%, after company trimmed its revenue forecasts for 2017 following less business in certain markets. The FTSEurofirst 300 index declined 0.8%, to close at 1,458.6. Among other European markets, the German DAX Xetra 30 slid 1.2%, to close at 11,804.0, while the French CAC-40 shed 0.9%, to settle at 4,845.2.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning, ahead of the US President Donald Trump’s address to Congress scheduled on Tuesday. In Japan, exporters, Mazda Motor, Panasonic and Toshiba have declined 1.2%, 2.3% and 3.4%, respectively, amid a stronger Japanese Yen. On the contrary, Takata has risen 0.9%, after a report indicated that the company is close to hiring Attorney, Kenneth Feinberg, for sorting through claims for its $125.0 million compensation fund for victims in its faulty air bags scandal. In Hong Kong, lenders, Bank of East Asia, Industrial and Commercial Bank of China and Bank of China have fallen 0.2%, 0.4% and 0.5%, respectively. In South Korea, index majors, Samsung Electronics and LG Electronics have dropped 0.6% and 5.1%, respectively, while POSCO has gained 1.1%. The Nikkei 225 index is trading 0.6% lower at 19,174.0. The Hang Seng index is trading 0.1% up at 23,984.7, while the Kospi index is trading 0.2% down at 2,089.2
Key Corporate Announcements Today
AGMs
MySquar Limited (DI), Formation Group Plc
EGMs
Interim Dividend Payment Date
Puma VCT 10
Trading Announcements
Key Corporate Announcements for Tomorrow
AGMs
Elegant Hotels Group, Sage Group, Ganapati
EGMs
Fondul Proprietatea S.A. GDR (Reg S)
Final Dividend Payment Date
Chrysalis VCT, Polar Capital Global Financials Trust, Renew Holdings, TUI AG Reg Shs (DI), Watkin Jones
Interim Dividend Payment Date
Albion Enterprise VCT, Bankers Inv Trust, City Natural Resources High Yield Trust, CQS New City High Yield Fund Limited, Diverse Income Trust (The), Ecofin Global Utilities and Infrastructure Trust, Edinburgh Inv Trust, Ediston Property Investment Company, F&C Commercial Property Trust Ltd., Fair Oaks Income Fund Limited, Henderson Far East Income Ltd., Henderson International Income Trust, London & St lawrence Inv Co., NB Private Equity Partners Ltd., Polar Capital Global Healthcare Growth & Income Trust, TwentyFour Select Monthly Income Fund Limited, UK Commercial Property Trust
Quarterly Payment Date
City of London Inv Trust, Picton Property Income Ltd
Trading Announcements
Babcock International Group, OPG Power Ventures, Oxford Immunotec Global
Key Economic News
UK BBA mortgage approvals surprisingly rose in January
In January, BBA mortgage approvals unexpectedly climbed to a level of 44.66 K in the UK, higher than market expectations of a drop to a level of 42.60 K. BBA mortgage approvals had registered a revised reading of 43.58 K in the prior month.
French consumer confidence steadied in February
Consumer confidence in France remained unchanged at 100.00 in February, meeting market expectations.
Italian consumer confidence index recorded a surprise drop in February
The consumer confidence index in Italy unexpectedly dropped to a level of 106.60 in February, lower than market expectations of a rise to 108.80. In the previous month, the consumer confidence index had recorded a revised reading of 108.60.
Italian industrial orders dropped more than expected in December
In December, the non-seasonally adjusted industrial orders fell 0.90% in Italy on an annual basis, compared to a rise of 0.10% in the previous month. Markets were expecting industrial orders to drop 0.80%.
Italian business confidence index advanced surprisingly in February
In February, the business confidence index rose unexpectedly to 106.30 in Italy, compared to market expectations of a fall to a level of 104.60. In the previous month, the business confidence index had recorded a revised reading of 105.00.
Italian industrial sales rose in December
On a YoY basis, the non-seasonally adjusted industrial sales recorded a rise of 9.40% in December, in Italy. Industrial sales had registered a rise of 3.90% in the prior month.
Italian industrial sales climbed in December
The seasonally adjusted industrial sales in Italy recorded a rise of 2.60% in December on a monthly basis. In the previous month, industrial sales had climbed 2.40%.
Italian industrial orders rose in December
In December, on a MoM basis, the seasonally adjusted industrial orders climbed 2.80% in Italy. In the previous month, industrial orders had climbed by a revised 1.70%.
Spanish PPI rose in January
The producer price index (PPI) climbed 7.50% in Spain on a YoY basis, in January. The PPI had recorded a revised rise of 2.90% in the prior month.
Spanish PPI advances in January
National Institute of Statistics has indicated that the PPI recorded a rise of 1.90% in Spain on a MoM basis, in January. The PPI had registered a revised rise of 1.60% in the previous month.
US Reuters/Michigan consumer sentiment index declined in February
The final Reuters/Michigan consumer sentiment index fell to a level of 96.30 in February, in the US, compared to a reading of 98.50 in the prior month. Markets were expecting the Reuters/Michigan consumer sentiment index to ease to a level of 96.00. The preliminary figures had recorded a fall to 95.70.
US new home sales climbed in January
New home sales climbed 3.70%, on monthly basis, to a level of 555.00 K in the US, in January, lower than market expectations of 571.00 K. In the prior month, new home sales had registered a revised level of 535.00 K.
Canadian CPI advanced more than expected in January
On a MoM basis, in Canada, the consumer price index (CPI) registered a rise of 0.90% in January, more than market expectations for a rise of 0.40%. The CPI had dropped 0.20% in the previous month.
Canadian CPI rose in January
The CPI in Canada climbed, on MoM basis, to a level of 129.50 in January. The CPI had registered a reading of 128.40 in the prior month.
Canadian core CPI advanced in January
On a YoY basis, the core CPI recorded a rise of 1.70% in Canada, in January. In the prior month, the core CPI had advanced 1.60%.
Canadian core CPI recorded a rise in January
In Canada, the core CPI rose 0.50% in January on a MoM basis. The core CPI had fallen 0.30% in the prior month.
Canadian CPI climbed in January
In January, on a MoM basis, the seasonally adjusted CPI registered a rise of 0.70% in Canada. In the previous month, CPI had registered a rise of 0.30%.
Canadian CPI advanced more than expected in January
The CPI in Canada climbed 2.10% in January on a YoY basis, compared with an advance of 1.50% in the previous month. Market anticipation was for the CPI to climb 1.60%.
Canadian core CPI rose in January
The seasonally adjusted core CPI climbed 0.40% on a monthly basis, in January, in Canada. In the previous month, core CPI had risen 0.20%.