UK Market Snapshot
UK markets finished mixed yesterday. The FTSE 100 index closed lower amid concerns that British economic growth is slowing. Miners, Randgold Resources, Glencore and Antofagasta dropped 1.9%, 2.0% and 2.6%, respectively. Ashtead Group slipped 2.0%, as it trimmed its earnings outlook for 2017 despite posting a rise in pre-tax profit for the third quarter. Shawbrook Group dipped 1.6%, after the company rejected a £825.0 million takeover offer from two private equity firms. On the positive side, Grafton Group surged 8.2%, after its full year operating profits were boosted following a strong contribution from its Isero acquisition in the Netherlands. Intertek Group jumped 4.8%, after the company swung to a pre-tax profit for 2016 due to weaker Pound, recent acquisitions and good organic growth and forecasted better results in 2017. The FTSE 100 declined 0.2%, to close at 7,339.0, while the FTSE 250 marginally rose to settle at 18,885.9.
US Market Snapshot
US markets closed in the red yesterday, weighed down by losses in healthcare and energy sector stocks. Pharmaceutical firms, Merck, Pfizer and Perrigo declined 0.8%, 1.1% and 1.8%, respectively, after House Republicans revealed its plan to repeal and replace Obamacare and the US President, Donald Trump, tweeted about reducing drug prices for Americans. Oil stocks, Exxon Mobil and Chevron fell 0.4% and 1.2%, respectively, amid lower crude oil prices. On the flipside, Pier 1 Imports jumped 5.6%, after the retailer’s preliminary results for the fourth quarter surpassed market expectations. Michaels Cos. advanced 2.3%, after the company posted higher than expected earnings for the fourth quarter and offered a robust outlook for 2017. The S&P 500 slipped 0.3%, to settle at 2,368.4. The DJIA shed 0.1%, to settle at 20,924.8, while the NASDAQ slid 0.3%, to close at 5,833.9.
Europe Market Snapshot
Other European markets ended mostly in negative territory yesterday, after German factory orders fell sharply in January. Casino Guichard Perrachon tumbled 5.6%, after the company offered a cautious profit outlook for 2017. Health care firms, Roche Holding and Novartis dropped 0.8% and 1.6%, respectively, after Donald Trump tweeted that he would promote competition in the pharmaceutical industry and reduce cost of medicines. Bucking the trend, Chocoladefabriken Lindt & Spruengl advanced 1.1%, after the company reported a rise in its net profit for 2016 due to lower tax rates and raised its dividend by 10.0%. Iliad climbed 1.2%, after the company posted higher than expected profit for 2016. The FTSEurofirst 300 index declined 0.3%, to close at 1,468.8. Among other European markets, the German DAX Xetra 30 rose 0.1%, to close at 11,966.1, while the French CAC-40 shed 0.3%, to settle at 4,955.0.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning. In Japan, Nisshin Steel, Alps Electric and Isetan Mitsukoshi Holdings have declined 3.0%, 3.3% and 4.3%, respectively. On the contrary, Toshiba has advanced 3.7%, after a report indicated that Chinese appliance maker, Midea Group, is interested in investing in the company’s semiconductor unit. In Hong Kong, ZTE has jumped 5.5%, after the company agreed to settle a sanctions-violations charge with the US Justice Department by paying up to $1.2 billion. MTR has added 1.8%, after news that the company could offer seven property projects for tender over the next 12 months. In South Korea, index majors, POSCO and LG Electronics have risen 2.1% and 2.4%, respectively. The Nikkei 225 index is trading 0.6% lower at 19,233.1. The Hang Seng index is trading 0.5% up at 23,800.0, while the Kospi index is trading 0.1% higher at 2,095.2.
Key Corporate Announcements Today
AGMs
Blackrock Income And Growth Investment Trust, Impax Asset Management Group
Final Dividend Payment Date
Elegant Hotels Group
Interim Dividend Payment Date
Key Corporate Announcements for Tomorrow
AGMs
88 Energy Limited (DI), Arden Partners
EGMs
Final Ex-Dividend Date
Athelney Trust, Aviva 8 3/8% Cumulative Irrd Preference 1, CareTech Holding, CRH, Electronic Data Processing, Jupiter Fund Management, Lakehouse, Rights & Issues Inv Trust Income Shares, Safestore Holdings, Spirent Communications, St. Modwen Properties, Temple Bar Inv Trust, Thomas Cook Group
Final Dividend Payment Date
Fenner, OMG
Interim Ex-Dividend Date
Acorn Income Fund Ld, Aew UK Reit, Alliance Trust, Ashmore group, Aurora Investment Trust, Baronsmead, Second Venture Trust, Baronsmead Venture Trust, BHP Billiton, Croma Security Solutions Group, Crown Place VCT, Dechra Pharmaceuticals, F&C Commercial Property Trust Ltd., F&C UK Real Estate Investments Limited, Hargreaves Lansdown, Joules Group, JPMorgan Global Growth & Income, JPMorgan Global Markets Emerging Income Trust, Kennedy Wilson Europe Real Estate, Mid Wynd International Inv Trust, MJ Gleeson, Oxford Instruments, Perpetual Income & Growth Inv Trust, Personal Assets Trust, Personal Group Holdings, Ranger Direct Lending Fund, Redde, Renishaw, Ricardo, River and Mercantile Group, Ruffer Investment Company Ltd, Red PTG Pref Shares, Scottish American Inv Company, Shire Plc, South32 Limited (DI), Standard Life UK Smaller Companies Trust, VPC Specialty Lending Investments, Wilmington, WYG
Interim Dividend Payment Date
Jarvis Securities
Special Ex-Dividend Payment Date
Jupiter Fund Management, Persimmon, River and Mercantile Group
Quarterly Ex-Dividend Date
Honeycomb Investment Trust, Land Securities Group, Premier Energy & Water Trust, UIL Limited (DI), Volta Finance Limited
Trading Announcements
Key Economic News
UK Halifax house price index advanced less than expected in February
The Halifax house price index registered a rise of 0.10% on a monthly basis in the UK, in February, compared to a fall of 1.10% in the prior month. Markets were expecting the Halifax house price index to climb 0.40%.
UK Halifax house price index rose less than expected in the December-February 2017 period
On an annual basis in the UK, the Halifax house price index climbed 5.10% in the December-February 2017 period, less than market expectations for a rise of 5.30%. In the November-January 2017 period, the Halifax house price index had recorded a rise of 5.70%.
Euro-zone GDP rose as expected in 4Q 2016
The seasonally adjusted final gross domestic product (GDP) in the Euro-zone rose 0.40% in 4Q 2016 on a QoQ basis, at par with market expectations. The preliminary figures had also recorded a rise of 0.40%. GDP had registered a revised similar rise in the previous quarter.
Euro-zone gross fixed capital formation advanced as expected in 4Q 2016
In the Euro-zone, the gross fixed capital formation registered a rise of 0.60% on a quarterly basis in 4Q 2016, meeting market expectations. The gross fixed capital formation had dropped by a revised 0.70% in the previous quarter.
Euro-zone government expenditure rose as expected in 4Q 2016
In 4Q 2016, government expenditure registered a rise of 0.40% in the Euro-zone on a QoQ basis, meeting market expectations. In the previous quarter, government expenditure had climbed by a revised 0.10%.
Euro-zone GDP advanced as expected in 4Q 2016
The seasonally adjusted final GDP in the Euro-zone advanced 1.70% on an annual basis in 4Q 2016, compared to a revised advance of 1.80% in the prior quarter. Markets were expecting GDP to climb 1.70%. The preliminary figures had also indicated a rise of 1.70%.
Euro-zone household consumption expenditure advanced less than expected in 4Q 2016
In 4Q 2016, on a QoQ basis, household consumption expenditure in the Euro-zone climbed 0.40%, lower than market expectations for an advance of 0.50%. Household consumption expenditure had risen 0.30% in the previous quarter.
German factory orders declined more than expected in January
In Germany, the seasonally adjusted factory orders registered a drop of 7.40% in January on a monthly basis, compared to a rise of 5.20% in the previous month. Markets were anticipating factory orders to drop 2.50%.
German factory orders unexpectedly declined in January
On a YoY basis, the non-seasonally adjusted factory orders unexpectedly eased 0.80% in January, in Germany, lower than market expectations for an advance of 4.30%. Factory orders had recorded a rise of 8.00% in the previous month.
French budget deficit dropped in January
France has registered budget deficit of €5.40 billion in January, compared to a budget deficit of €69.00 billion in the previous month.
Italian PPI advanced in January
In January, on a MoM basis, the producer price index (PPI) climbed 1.10% in Italy. The PPI had advanced 0.60% in the previous month.
Italian PPI rose in January
On an annual basis, the PPI in Italy registered a rise of 2.80% in January. In the prior month, the PPI had risen 0.90%.
Swiss foreign currency reserves rose in February
In February, foreign currency reserves in Switzerland recorded a rise to CHF 668.18 billion, compared to a revised reading of CHF 643.90 billion in the previous month.
US trade deficit expanded in January
Trade deficit in the US expanded to $48.50 billion in January, from a trade deficit of $44.30 billion in the previous month. Markets were expecting the nation to register a trade deficit$48.50 billion.
US economic optimism index slid in March
In the US, the economic optimism index dropped to 55.30 in March, compared to a level of 56.40 in the prior month.
US Redbook index rose in the last week
On an annual basis, the Redbook index advanced 1.00% in the US, in the week ended 03 March 2017. The Redbook index had advanced 1.40% in the prior week.
US consumer credit advanced less than expected in January
In January, consumer credit rose $8.79 billion in the US, compared to a revised advance of $14.76 billion in the prior month. Market anticipation was for consumer credit to climb $17.25 billion.
US Redbook index eased in the last week
On a MoM basis, the seasonally adjusted Redbook index slid 0.80% in the week ended 03 March 2017, in the US. The Redbook index had advanced 0.70% in the prior week.
Canadian Ivey PMI fell surprisingly in February
In Canada, the seasonally adjusted Ivey PMI eased unexpectedly to a level of 55.00 in February, compared to a reading of 57.20 in the prior month. Markets were anticipating Ivey PMI to rise to 58.50.
Canadian Ivey PMI advanced in February
In February, the non-seasonally adjusted Ivey PMI rose to a level of 55.10 in Canada. Ivey PMI had recorded a level of 52.30 in the previous month.
Canadian international merchandise trade surplus rose in January
The international merchandise trade surplus in Canada rose to C$0.81 billion in January, compared to market expectations of an international merchandise trade surplus of C$0.75 billion. Canada had reported a revised international merchandise trade surplus of C$0.45 billion in the previous month.
Japanese GDP rose less than expected in 4Q 2016
In 4Q 2016, the final GDP advanced 0.30% on a QoQ basis in Japan, compared to a similar rise in the prior quarter. Markets were anticipating GDP to advance 0.40%. The preliminary figures had recorded a rise of 0.20%.
Japanese bank lending including trusts rose in February
In Japan, bank lending including trusts recorded a rise of 2.80% on an annual basis, in February. In the prior month, bank lending including trusts had advanced 2.50%.
Japanese current account surplus narrowed in January
The non-seasonally adjusted current account surplus in Japan narrowed to ¥65.50 billion in January, from a current account surplus of ¥1112.20 billion in the previous month. Markets were expecting the nation's current account surplus to drop to ¥270.00 billion.
Japanese nominal GDP rose less than expected in 4Q 2016
The final nominal GDP climbed 0.40% on a QoQ basis in Japan, in 4Q 2016, compared to a revised advance of 0.20% in the previous quarter. Market anticipation was for nominal GDP to climb 0.50%. The preliminary figures had indicated a rise of 0.30%.
Japanese annualised GDP rose less than expected in 4Q 2016
In 4Q 2016, the final annualised GDP advanced 1.20% in Japan on a quarterly basis, lower than market expectations for an advance of 1.50%. The preliminary figures had recorded an advance of 1.00%. In the previous quarter, annualised GDP had registered a revised rise of 1.40%.
Japanese GDP deflator dropped as expected in 4Q 2016
In 4Q 2016, the final gross domestic product deflator registered a drop of 0.10% on a YoY basis in Japan, meeting market expectations. The preliminary figures had also recorded a drop of 0.10%. In the previous quarter, the GDP deflator had registered a revised similar fall.
Japan recorded (BOP basis) trade deficit in January
Japan has posted (BOP basis) trade deficit of ¥853.40 billion in January, compared to a (BOP basis) trade surplus of ¥806.80 billion in the prior month. Market anticipation was for a (BOP basis) trade deficit of ¥800.20 billion.
Japanese bank lending ex-trust climbed in February
Bank lending ex-trust registered a rise of 2.90% on a YoY basis, in February, in Japan. Bank lending ex-trust had recorded a rise of 2.60% in the previous month.
Japanese adjusted (total) current account surplus fell in January
Adjusted (total) current account surplus in Japan fell to ¥1259.80 billion in January, compared to a revised adjusted (total) current account surplus of ¥1659.40 billion in the prior month. Markets were expecting the nation to post a adjusted (total) current account surplus of ¥1464.10 billion.