UK Market Snapshot
UK markets finished in positive territory yesterday, ahead of the US President Donald Trump’s speech before Congress about his plans for infrastructure and other spending in the US. Meggitt surged 13.1%, after the company raised its full year dividend. Babcock International Group soared 7.1%, after the company stated that its trading remained in line with expectations to achieve its FY2017 outlook. GKN jumped 4.9%, following upbeat pre-tax profit for 2016 and positive outlook for the next year. British Land climbed 1.2%, amid reports that the company and its joint venture, Oxford Properties, were in advanced talks to sell their stakes in the Leadenhall Building. The FTSE 100 advanced 0.1%, to close at 7,263.4, while the FTSE 250 rose 0.5%, to settle at 18,770.7.
US Market Snapshot
US markets closed in the red yesterday, weighed down by losses in consumer discretionary stocks. Signet Jewelers sank 12.8%, after a report indicated that some employees of the company have claimed sexual harassment and discrimination within the workplace. Target plummeted 12.2%, after the retailer posted lower than expected sales and profit for the fourth quarter and offered a dismal outlook for 2017. Perrigo plunged 11.7%, after the drugmaker stated that it would sell its royalties from Tysabri, a multiple sclerosis drug, to Royalty Pharma for up to $2.85 billion. On the positive side, Hertz Global Holdings surged 13.6%, despite reporting wider than expected loss for the fourth quarter. Priceline jumped 5.6%, after the retailer posted upbeat fourth quarter earnings. The S&P 500 slipped 0.3%, to settle at 2,363.6. The DJIA shed 0.1%, to settle at 20,812.2, while the NASDAQ slid 0.6%, to close at 5,825.4.
Europe Market Snapshot
Other European markets ended firmer yesterday, boosted by gains in defence sector stocks. Thales advanced 3.7%, after it posted buoyant operating profit for 2016, raised its dividend and offered robust profitability outlook due to higher military spending globally. Hochtief edged 0.8% up, after company reported upbeat results for 2016. Bucking the trend, Salzgitter dropped 2.5%, after the company provided robust outlook for sales and profit in 2017 but warned that forecast was subject to some unforeseeable influences which include selling and input prices and exchange rates. The FTSEurofirst 300 index gained 0.2%, to close at 1,458.9. Among other European markets, the German DAX Xetra 30 rose 0.1%, to close at 11,834.4, while the French CAC-40 advanced 0.3%, to settle at 4,858.6.
Asia Market Snapshot
Markets in Asia are trading higher this morning, as hawkish comments from the US Federal Reserve officials increased the possibility of a March interest rate hike. In Japan, Shiseido has advanced 3.8%, after the company announced that Health Ministry of Japan has approved the effectiveness of a substance that helps minimise wrinkles. Exporters, Toyota Motor, Panasonic and Mazda Motor have risen 0.9%, 1.2% and 2.5%, respectively, after the Japanese Yen weakened against the greenback. On the contrary, H.I.S. has tumbled 3.6%, after the travel agency posted a decline in its first quarter operating profit. In Hong Kong, gaming stocks, Melco International Development and Galaxy Entertainment Group have climbed 1.0% and 3.2%, respectively. South Korean markets are closed today on account of a public holiday. The Nikkei 225 index is trading 1.3% higher at 19,360.4. The Hang Seng index is trading 0.2% up at 23.788.5. Yesterday, the Kospi index gained 0.3%, to close at 2,091.6.
Key Corporate Announcements Today
AGMs
Aberforth Smaller Companies Trust, Ediston Property Investment Company
EGMs
ICG-Longbow
Interim Dividend Payment Date
Quarterly Payment Date
Toro Limited
Quarterly Ex-Dividend Date
Bank of America Corp.
Trading Announcements
Key Corporate Announcements for Tomorrow
AGMs
Jersey Electricity 'A' Shares, Shoe Zone, Local Shopping REIT
Final Ex-Dividend Date
32RED, Centamin (DI), Downing Three VCT D Share, Downing Two VCT D Share, LPA Group, Mobeus Income & Growth Vct, MTI Wireless Edge Ltd., Northern Electricity Prf, Plus500 Ltd (DI), RSA Ins 7 3/8%pf, RSA Insurance Group, Sanderson Group, SSP Group
Interim Ex-Dividend Date
Beazley, Berkeley Group Holdings (The), City of London Investment Group, Colefax Group, F&C Capital & Income Inv Trust, Genus, GLI Finance Limited, Hansard Global, Hays, Henderson Diversified Income Ltd., JPMorgan European Inv Trust Growth Shares, JPMorgan European Investment Trust, JPMorgan Global, Convertibles Income Fund Ltd, M&G High Income Inv Trust Income Shares, Murray Income Trust, Park Group, Schroder European Real Estate Investment Trust, Stewart & Wight, Witan Inv Trust
Special Ex-Dividend Payment Date
Beazley, Plus500 Ltd (DI)
Quarterly Ex-Dividend Date
Aberdeen Diversified Income and Growth Trust, Barclays, Blackrock North American Income Trust, HICL Infrastructure Company Ltd, Regional REIT Limited, SQN Asset Finance Income Fund Limited, The SME Loan Fund
Key Economic News
UK BRC shop price index declined less than expected in February
On a YoY basis in February, the BRC shop price index slid 1.00% in the UK, lower than market expectations for a drop of 1.40%. The BRC shop price index had dropped 1.70% in the previous month.
French PPI records a rise in January
The producer price index (PPI) registered a rise of 0.70% on a monthly basis, in January, in France. In the previous month, the PPIhad recorded a rise of 0.90%.
French GDP advanced more than expected in 4Q 2016
The second estimate of gross domestic product (GDP) rose 1.20% on an annual basis in 4Q 2016, in France, compared to a revised rise of 0.90% in the previous quarter. The preliminary figures had indicated a rise of 1.10%. Market anticipation was for GDP to rise 1.10%.
French EU normalised CPI rose less than expected in February
In February, the flash EU normalised consumer price index (CPI) recorded a rise of 0.10% in France on a MoM basis, compared to a revised drop of 0.30% in the prior month. Markets were anticipating EU normalised CPI to climb 0.40%.
French CPI (ex-tobacco) advanced less than expected in February
The preliminary CPI (ex-tobacco) in France recorded a rise of 1.20% in February on a YoY basis, compared with an advance of 1.30% in the previous month. Markets were anticipating the CPI (ex-tobacco) to rise 1.50%.
French consumer spending rose as expected in January
On previous month. Markets were anticipating consumer spending to advance 0.60%.
French CPI (ex-tobacco) rose less than expected in February
In February, the flash CPI (ex-tobacco) advanced 0.10% in France on a monthly basis, lower than market expectations for a rise of 0.40%. In the prior month, the CPI (ex-tobacco) had recorded a drop of 0.20%.
French GDP advanced as expected in 4Q 2016
In France, the second estimate of GDP recorded a rise of 0.40% in 4Q 2016, on a quarterly basis, at par with market expectations. In the previous quarter, GDP had advanced 0.20%. The preliminary figures had also recorded a rise of 0.40%.
Italian CPI advanced more than expected in February
The preliminary CPI in Italy climbed 0.30% in February on a MoM basis, compared to a similar rise in the prior month. Market expectation was for the CPI to rise 0.10%.
Italian EU normalised CPI surprisingly advanced in February
On a monthly basis, the flash EU normalised CPI in Italy unexpectedly climbed 0.20% in February, compared to a fall of 1.70% in the prior month. Market anticipation was for the EU normalised CPI to ease 0.10%.
Swiss KOF economic barometer recorded a rise in February
The KOF economic barometer rose to a level of 107.20 in Switzerland, in February, compared to market expectations of a rise to a level of 102.10. In the prior month, the KOF economic barometer had recorded a revised level of 102.00.
Fed's Williams said March hike to get “serious consideration”
The President of the Federal Reserve (Fed) Bank of San Francisco, John Williams, stated that he sees a March interest rate hike receiving “serious consideration” when he and the other US central bankers gather at the upcoming monetary policy meeting in Washington.
US wholesale inventories surprisingly slid in January
On a monthly basis, the seasonally adjusted flash wholesale inventories unexpectedly fell 0.10% in the US, in January, lower than market expectations for a rise of 0.40%. The wholesale inventories had climbed 1.00% in the previous month.
US Richmond Fed manufacturing index rose surprisingly in February
The Richmond Fed manufacturing index advanced unexpectedly to 17.00 in the US, in February, higher than market expectations of a drop to a level of 10.00. The Richmond Fed manufacturing index had recorded a reading of 12.00 in the prior month.
US Redbook index registered a rise in the last week
In the week ended 24 February 2017, on an annual basis, the Redbook index in the US recorded a rise of 1.40%. In the prior week, the Redbook index had climbed 1.10%.
US GDP price index advanced less than expected in 4Q 2016
On a QoQ basis in the US, the second estimate of gross domestic product price index registered a rise of 2.00% in 4Q 2016, compared to a rise of 1.40% in the prior quarter. Market expectation was for the GDP price index to rise 2.10%. The preliminary figures had indicated an advance of 2.10%.
US core personal consumption expenditure rose less than expected in 4Q 2016
In the US, the second estimate of core personal consumption expenditure climbed 1.20% on a quarterly basis in 4Q 2016, lower than market expectations for an advance of 1.30%. In the previous quarter, core personal consumption expenditure had climbed 1.70%. The preliminary figures had indicated an advance of 1.30%.
US CB consumer confidence index climbed surprisingly in February
In February, the CB consumer confidence index in the US climbed unexpectedly to 114.80, compared to market expectations of a drop to 111.00. In the prior month, the CB consumer confidence index had recorded a revised level of 111.60.
US S&P/Case-Shiller home price index advanced in December
Standard & Poor's has indicated that, in December, the S&P/Case-Shiller home price index advanced to 192.61 in the US. In the previous month, the S&P/Case-Shiller home price index had recorded a revised reading of 192.00.
US Redbook index recorded a rise in the last week
On a monthly basis, the seasonally adjusted Redbook index recorded a rise of 0.70% in the US, in the week ended 24 February 2017. The Redbook index had climbed 0.50% in the previous week.
US annualised GDP rose less than expected in 4Q 2016
The second estimate of annualised gross domestic product recorded a rise of 1.90% in the US on a quarterly basis in 4Q 2016, compared to a rise of 3.50% in the previous quarter. Markets were anticipating the annualised GDP to rise 2.10%. The preliminary figures had also indicated an advance of 1.90%.
US Chicago Fed purchasing managers index advanced in February
The Chicago Fed purchasing managers index in the US recorded a rise to 57.40 in February, compared to a level of 50.30 in the previous month. Markets were anticipating the Chicago Fed purchasing managers index to rise to 53.50.
US S&P/Case-Shiller composite index of 20 metropolitan areas advanced more than expected in December
In December, on a MoM basis, the seasonally adjusted S&P/Case-Shiller composite index of 20 metropolitan areas recorded a rise of 0.93% in the US, more than market expectations for a rise of 0.70%. In the prior month, the S&P/Case-Shiller composite index of 20 metropolitan areas had recorded a revised rise of 0.89%.
US personal consumption recorded a rise in 4Q 2016
On a QoQ basis, the second estimate of personal consumption registered a rise of 3.00% in 4Q 2016, in the US. Personal consumption had registered a similar rise in the prior quarter. The preliminary figures had indicated an advance of 2.50%.
US S&P/Case-Shiller composite HPI of 20 metropolitan areas rose more than expected in December
In the US, the S&P/Case-Shiller composite home price index (HPI) of 20 metropolitan areas climbed 5.58% on a YoY basis in December, higher than market expectations for a rise of 5.40%. In the previous month, the S&P/Case-Shiller composite HPI of 20 metropolitan areas had climbed by a revised 5.20%.
Canadian industrial product price index rose less than expected in January
In January, the industrial product price index recorded a rise of 0.40% on a MoM basis in Canada, compared to a revised advance of 0.30% in the prior month. Market anticipation was for the industrial product price index to rise 0.50%.
Canadian raw material price index rose more than expected in January
On a MoM basis, the raw material price index climbed 1.70% in Canada, in January, compared to an advance of 6.50% in the previous month. Markets were anticipating the raw material price index to climb 1.20%.
Japanese construction orders registered a rise in January
Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has reported that, on an annual basis, construction orders in Japan advanced 1.10% in January. In the prior month, construction orders had climbed 7.10%.
Japanese housing starts rose more than expected in January
In January, housing starts rose 12.80% in Japan on a YoY basis, more than market expectations for a rise of 3.20%. In the prior month, housing starts had recorded a rise of 3.90%.
Japanese capital spending rose more than expected in 4Q 2016
On an annual basis in Japan, capital spending recorded a rise of 3.80% in 4Q 2016, more than market expectations for a rise of 0.60%. In the prior quarter, capital spending had dropped 1.30%.
Japanese capital spending excluding software advanced more than expected in 4Q 2016
On a YoY basis, capital spending excluding software in Japan rose 3.30% in 4Q 2016, higher than market expectations for an advance of 0.20%. In the prior quarter, capital spending excluding software had dropped 1.40%.
Japanese small business confidence index dropped unexpectedly in February
The small business confidence index eased unexpectedly to a level of 47.70 in Japan, in February, compared to market expectations of a rise to a level of 48.50. In the previous month, the small business confidence index had recorded a level of 48.30.
Japanese manufacturing PMI rose in February
The final manufacturing PMI in Japan recorded a rise to 53.30 in February, compared to a level of 52.70 in the previous month. The preliminary figures had indicated an advance to 53.50.
Japanese annualised housing starts registered an unexpected rise in January
Compared to a level of 0.92 mn units in the previous month, the annualised housing starts advanced unexpectedly to 1.00 mn units in January, in Japan. Market anticipation was for the annualised housing starts to ease to 0.91 mn units.
Chinese NBS non-manufacturing PMI fell in February
In February, the NBS non-manufacturing PMI in China dropped to 54.20. In the prior month, the NBS non-manufacturing PMI had registered a reading of 54.60.
Chinese NBS manufacturing PMI recorded an unexpected rise in February
In China, the NBS manufacturing PMI rose unexpectedly to a level of 51.60 in February, higher than market expectations of a fall to a level of 51.20. In the previous month, the NBS manufacturing PMI had registered a level of 51.30.
Chinese Caixin/Markit manufacturing PMI index advanced unexpectedly in February
Caixin/Markit manufacturing PMI index recorded an unexpected rise to 51.70 in China, in February, compared to market expectations of a drop to 50.80. In the previous month, Caixin/Markit manufacturing PMI index had recorded a reading of 51.00.