UK Market Snapshot
UK markets finished in the green yesterday, with the FTSE 100 index closing at a record high amid speculation that the US interest rates could be hiked in March. CRH surged 4.9%, after the company posted better than expected earnings in 2016 indicating higher volume sales, cost-savings and gains from newly acquired assets. Next jumped 4.6%, after a leading broker upgraded its rating on the stock to ‘Buy’ from ‘Sell’. ITV climbed 4.5%, after the company announced a special dividend and offered a robust outlook for 2017. Banks, Royal Bank of Scotland Group, Barclays and Standard Chartered added 2.6%, 2.8% and 3.6%, respectively. Imperial Brands, British American Tobacco and Burberry Group advanced 1.2%, 1.6% and 2.8%, respectively, amid a weaker Pound. The FTSE 100 advanced 1.6%, to close at 7,382.9, while the FTSE 250 rose %1.1, to settle at 18,983.0.
US Market Snapshot
US markets closed in positive territory yesterday, with the DJIA index breaching the 21,000 level for the first time and closing at an all-time high level, as investor sentiment was boosted by the US President Donald Trump’s softer stance in his major address to Congress. Weight Watchers International rallied 27.5%, after the company posted an upbeat profit for 2016 and provided a robust earnings outlook for 2017. Lowe's surged 9.5%, after its sales and earnings for the fourth quarter surpassed analysts’ forecasts. Banks, Goldman Sachs Group edged 1.9% up, while JPMorgan Chase and Bank of America climbed 3.3%, each, after key US Federal Reserve (Fed) officials indicated that the benchmark interest rate could be raised in the March meeting. The S&P 500 gained 1.4%, to settle at 2,396.0. The DJIA rose 1.5%, to settle at 21,115.6, while the NASDAQ advanced 1.3%, to close at 5,904.0.
Europe Market Snapshot
Other European markets ended stronger yesterday, amid expectations that European companies would be benefitted through an increase in government spending in the US. Banco de Sabadell surged 6.8%, after the bank agreed to sell its Florida retail banking sUBSidiary, Sabadell United Bank, to Iberiabank for around $1.0 billion. Rheinmetall jumped 5.7%, after the company reported higher than expected earnings before interest and taxes for 2016, due to a continued turnaround at its defence unit. Nordex climbed 5.6%, after the wind turbine maker posted upbeat results for the full year. Airbus edged 2.6% up, after the company completed the sale of its Germany-based defence electronics business to KKR for around $1.2 billion. The FTSEurofirst 300 index gained 1.5%, to close at 1,481.3. Among other European markets, the German DAX Xetra 30 rose 2.0%, to close at 12,067.2, while the French CAC-40 advanced 2.1%, to settle at 4,960.8.
Asia Market Snapshot
Markets in Asia are trading higher this morning, mirroring overnight gains on Wall Street. In Japan, financial stocks, SOMPO Holdings, Mitsubishi UFJ Financial Group and Dai-ichi Life Holdings have climbed 2.3%, 3.3% and 5.1%, respectively. Exporters, Toshiba, Sony and Canon have advanced 1.3%, 2.1% and 3.1%, respectively, as the Japanese Yen weakened against its US counterpart. In Hong Kong, Bank of China, China Life Insurance Company and HSBC Holdings have risen 1.0%, 1.3% and 1.6%, respectively. Chinese Estates Holdings has added 0.2%, after its controlling shareholder, Joseph Lau Luen-hung, transferred his stake to his wife and son. In South Korea, KB Financial Group and Hana Financial Group have gained 2.7% and 3.7%, respectively. The Nikkei 225 index is trading 1.0% higher at 19,590.4. The Hang Seng index is trading 0.4% up at 23,862.3, while the Kospi index is trading 0.5% higher at 2,101.7.
Key Corporate Announcements Today
AGMs
Jersey Electricity 'A' Shares, Shoe Zone, Local Shopping REIT, Sanderson Group Plc
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 Corporate Announcements for Tomorrow
AGMs
Actual Experience, Premier Veterinary Group
EGMs
AFC Energy
Final Dividend Payment Date
Aberforth Smaller Companies Trust, Fyffes, Gooch & Housego, Sage Group, Zytronic
Interim Dividend Payment Date
CPL Resources, Games Workshop Group, GCP Infrastructure Investments Ltd, IG Group Holdings, P2P Global Investments, Premier Asset Management Group, Puma Vct 8, Puma VCT 9
Special Dividend Payment Date
Aberforth Smaller Companies Trust
Quarterly Payment Date
JPMorgan Claverhouse Inv Trust
Trading Announcements
Harvey Nash
Key Economic News
UK M4 Ex-IOFCs 3M annualised climbed in January
In the UK, M4 Ex-IOFCs 3M annualised registered a rise of 1.80% on a MoM basis, in January. M4 Ex-IOFCs 3M annualised had recorded a revised rise of 3.10% in the previous month.
UK house prices advanced more than expected in February
The non-seasonally adjusted house prices in the UK registered a rise of 4.50% on a YoY basis in February, more than market expectations for a rise of 4.10%. In the previous month, house prices had risen 4.30%.
UK house prices advanced more than expected in February
On a MoM basis, the seasonally adjusted house prices in the UK recorded a rise of 0.60% in February, higher than market expectations for a rise of 0.20%. House prices had registered a rise of 0.20% in the prior month.
UK M4 money supply climbed in January
In January, on a MoM basis, M4 money supply in the UK advanced 0.90%. M4 money supply had recorded a drop of 0.50% in the prior month.
UK M4 money supply rose in January
In the UK, M4 money supply climbed 7.00% in January on an annual basis. M4 money supply had risen 6.20% in the prior month.
UK manufacturing PMI unexpectedly declined in February
In the UK, the manufacturing PMI recorded an unexpected drop to a level of 54.60 in February, lower than market expectations of a rise to 55.80. In the previous month, the manufacturing PMI had recorded a revised level of 55.70.
UK net lending to individuals advanced in January
In the UK, net lending to individuals rose £4.80 billion, in January. In the previous month, net lending to individuals had recorded a revised rise of £4.68 billion.
UK net lending secured on dwellings advanced less than expected in January
In the UK, net lending secured on dwellings recorded a rise of £3.40 billion in January, lower than market expectations for a rise of £3.70 billion. Net lending secured on dwellings had risen by a revised £3.70 billion in the prior month.
UK net consumer credit rose as expected in January
In the UK, net consumer credit climbed £1.40 billion in January, in line with market expectations. In the prior month, net consumer credit had registered a rise of £1.00 billion.
UK number of mortgage approvals for house purchases advanced in January
Number of mortgage approvals for house purchases registered a rise to 69.90 K in January, in the UK, compared to market expectations of a rise to 68.70 K. Number of mortgage approvals for house purchases had registered a revised level of 68.30 K in the prior month.
Euro-zone manufacturing PMI recorded a rise in February
In February, the final manufacturing PMI advanced to 55.40 in the Euro-zone, compared to market expectations of a rise to a level of 55.50. The manufacturing PMI had recorded a reading of 55.20 in the previous month. The preliminary figures had recorded an advance to 55.50.
German manufacturing PMI rose in February
Compared to a reading of 56.40 in the prior month, the final manufacturing PMI rose to a level of 56.80 in Germany, in February. The preliminary figures had recorded a rise to 57.00. Market expectation was for manufacturing PMI to climb to a level of 57.00.
German CPI advanced as expected in February
In February, on a MoM basis, the preliminary consumer price index (CPI) in Germany advanced 0.60%, at par with market expectations. In the prior month, the CPI had registered a drop of 0.60%.
German CPI advanced more than expected in February
In February, the flash CPI registered a rise of 2.20% in Germany on an annual basis, more than market expectations for an advance of 2.10%. In the prior month, the CPI had risen 1.90%.
German unemployment rate remained flat in February
The seasonally adjusted unemployment rate remained steady at a level of 5.90% in Germany, in February, at par with market expectations.
German HICP rose more than expected in February
On a YoY basis, the flash harmonised consumer price index (HICP) in Germany registered a rise of 2.20% in February, higher than market expectations for an advance of 2.10%. The HICP had registered a rise of 1.90% in the previous month.
German HICP rose more than expected in February
In Germany, the preliminary HICP climbed 0.70% in February, more than market expectations for a rise of 0.60%. The HICP had fallen 0.80% in the prior month.
German number of people unemployed fell more than expected in February
In Germany, the number of people unemployed eased 14.00 K in February, more than market expectations for a drop of 10.00 K. In the prior month, the number of people unemployed had fallen by a revised 25.00 K.
French manufacturing PMI dropped in February
The final manufacturing PMI registered a drop to 52.20 in France, in February, compared to market expectations of a fall to 52.30. The preliminary figures had recorded a fall to 52.30. In the previous month, manufacturing PMI had registered a level of 53.60.
Italian manufacturing PMI advanced in February
In February, the manufacturing PMI in Italy rose to a level of 55.00, compared to a reading of 53.00 in the prior month. Market anticipation was for the manufacturing PMI to rise to a level of 53.50.
Spanish manufacturing PMI slid unexpectedly in February
In February, the manufacturing PMI dropped unexpectedly to a level of 54.80 in Spain, compared to a level of 55.60 in the prior month. Market expectation was for the manufacturing PMI to rise to 55.80.
Swiss SVME manufacturing PMI advanced in February
The SVME manufacturing PMI in Switzerland recorded a rise to 57.80 in February, higher than market expectations of a rise to a level of 55.50. In the previous month, the SVME manufacturing PMI had recorded a level of 54.60.
Swiss UBS consumption indicator slid unexpectedly in January
UBS consumption indicator recorded an unexpected drop to a level of 1.43 in January, in Switzerland, compared to market expectations of a steady reading. UBS consumption indicator had registered a reading of 1.50 in the previous month.
Fed’s Beige Book: US business optimism had cooled
The Federal Reserve’s (Fed) Beige Book report for the period from early January through mid-February showed that US business optimism in the wake of the Presidential election has cooled a bit. It further described growth in all 12 Fed districts as remaining in the same “modest-to-moderate” pace
US ISM inventories advanced in February
In the US, ISM inventories registered a rise to 51.50 in February, compared to a reading of 48.50 in the prior month.
US ISM new orders advanced in February
ISM new orders rose to a level of 65.10 in February, in the US. ISM new orders had registered a reading of 60.40 in the prior month.
US personal income advanced more than expected in January
On a MoM basis, in the US, personal income rose 0.40% in January, more than market expectations for a rise of 0.30%. In the previous month, personal income had registered a rise of 0.30%.
US personal consumption expenditure deflator advanced less than expected in January
In January, personal consumption expenditure deflator recorded a rise of 1.90% in the US on an annual basis, less than market expectations for an advance of 2.00%. Personal consumption expenditure deflator had recorded a rise of 1.60% in the previous month.
US ISM prices paid index recorded a drop in February
In the US, the ISM prices paid index recorded a drop to 68.00 in February, in line with market expectations. In the prior month, the ISM prices paid index had registered a level of 69.00.
US Markit manufacturing PMI fell in February
Compared to a level of 55.00 in the previous month the final Markit manufacturing PMI registered a drop to 54.20 in the US, in February. Market expectation was for the Markit manufacturing PMI to fall to 54.50. The preliminary figures had recorded a drop to 54.30.
US mortgage applications climbed in the last week
Mortgage applications in the US rose 5.80% in the week ended 24 February 2017 on a weekly basis. Mortgage applications had recorded a drop of 2.00% in the previous week.
US core personal consumption expenditure rose as expected in January
In January, core personal consumption expenditure recorded a rise of 1.70% in the US on a YoY basis, compared to a similar rise in the previous month. Market expectation was for core personal consumption expenditure to advance 1.70%.
US personal spending advanced less than expected in January
On a MoM basis, personal spending registered a rise of 0.20% in the US, in January, lower than market expectations for a rise of 0.30%. In the prior month, personal spending had risen 0.50%.
US construction spending unexpectedly fell in January
In January, on a MoM basis, construction spending unexpectedly eased 1.00% in the US, less than market expectations for an advance of 0.60%. In the prior month, construction spending had climbed by a revised 0.10%.
US personal consumption expenditure deflator rose less than expected in January
On a monthly basis, personal consumption expenditure deflator registered a rise of 0.40% in the US, in January, lower than market expectations for an advance of 0.50%. In the previous month, personal consumption expenditure deflator had risen 0.20%.
US ISM backlog orders climbed in February
In February, ISM backlog orders in the US registered a rise to 57.00. ISM backlog orders had recorded a level of 49.50 in the previous month.
US ISM production advanced in February
Compared to a reading of 61.40 in the previous month ISM production advanced to 62.90 in the US, in February.
US ISM manufacturing activity index advanced in February
The ISM manufacturing activity index in the US advanced to 57.70 in February, higher than market expectations of an advance to a level of 56.20. In the prior month, the ISM manufacturing activity index had recorded a level of 56.00.
US core personal consumption expenditure rose as expected in January
In January, core personal consumption expenditure rose 0.30% on a monthly basis in the US, in line with market expectations. In the previous month, core personal consumption expenditure had risen 0.10%.
BoC held benchmark interest rate steady at 0.5%
The Bank of Canada (BoC) maintained key interest rate at 0.5% and repeated previous warnings about the “significant uncertainties” faced by the Canadian economy. The central bank further stated that while there have been recent gains in employment, subdued growth in wages and hours worked continue to reflect persistent economic slack in Canada.
Canadian current account deficit registered a drop in 4Q 2016
In 4Q 2016, current account deficit in Canada dropped to C$10.73 billion, from a revised current account deficit of C$19.75 billion in the previous quarter. Market anticipation was for the nation to record a current account deficit of C$9.75 billion.
Japanese investors turned net sellers of foreign bonds in the previous week
Japanese investors turned net sellers of ¥202.00 billion worth of foreign bonds in the week ended 24 February 2017, from being net buyers of ¥48.20 billion worth of foreign bonds in the prior week.
Japanese investors remained net buyers of foreign stocks in the previous week
Japanese investors were net buyers of ¥159.50 billion worth of foreign stocks in the week ended 24 February 2017, from being net buyers of ¥164.90 billion worth of foreign stocks in the prior week.
Japanese corporate loans & discounts advanced in January
Corporate loans & discounts climbed 2.73% on a YoY basis in Japan, in January. In the prior month, corporate loans & discounts had risen 2.81%.
Japanese vehicle sales recorded a rise in February
On an annual basis, vehicle sales climbed 13.40% in February, in Japan. In the previous month, vehicle sales had registered a rise of 8.60%.
Foreign investors turned net buyers of Japanese bonds in the previous week
Foreign investors turned net buyers of ¥367.90 billion worth of Japanese bonds in the week ended 24 February 2017, as compared to being net sellers of ¥141.20 billion worth of Japanese bonds in the prior week.
Japanese monetary base advanced in February
In February, on an annual basis, the monetary base in Japan recorded a rise of 21.40%. In the prior month, the monetary base had climbed 22.60%.
Foreign investors became net sellers of Japanese stocks in the previous week
Foreign investors were net sellers of ¥261.10 billion worth of Japanese stocks in the week ended 24 February 2017, from being net sellers of ¥127.90 billion worth of Japanese stocks in the prior week.