UK Market Snapshot
UK markets finished in positive territory yesterday, after UK’s retail sales for February beat market expectations and indicated robust consumption. Next surged 8.1%, after the retailer maintained its final dividend and guidance for 2017. Peer, Marks & Spencer Group climbed 3.8%. GVC Holdings jumped 5.4%, after the company posted a rise in its full-year earnings and announced that it would pay a second special dividend for 2016. Tesco edged 2.0% up, after the company removed Heineken beers and ciders from its shelves after the latter increased its prices due to Brexit. Bucking the trend, IG Group Holdings tumbled 5.0%, after the company reported a drop in its revenue for the third quarter. Segro, Galliford Try and Bovis Homes Group declined 1.8%, 2.2% and 3.2%, respectively, as they went ex-dividend. The FTSE 100 advanced 0.2%, to close at 7,340.7, while the FTSE 250 rose 0.9%, to settle at 19,002.3.
US Market Snapshot
US markets closed lower yesterday, with the DJIA index recording its sixth straight session decline after a vote on the American Health Care Act was delayed by the House Republicans. Pharmaceutical firms, Humana and Centene fell 1.6% and 4.0%, respectively. Ford Motor shed 0.9%, after it offered a dismal earnings outlook for the first quarter. Apple slid 0.4%, after reports indicated that the company had acquired a popular automation mobile app, Workflow. On the positive side, Five Below surged 10.8%, after the discount retailer posted better than expected earnings for the fourth quarter and announced that it would open 100 new stores in 2017. PVH soared 8.5%, after the company reported upbeat results for the fourth quarter. The S&P 500 slipped 0.1%, to settle at 2,346.0. The DJIA shed marginally fell to settle at 20,656.6, while the NASDAQ fell 0.1%, to close at 5,817.7.
Europe Market Snapshot
Other European markets ended in the green yesterday, boosted by gains in financial sector stocks after banks borrowed more than expected under the European Central Bank’s (ECB) TLTRO programme. Lenders, Commerzbank, BNP Paribas and Societe Generale climbed 1.1%, 1.3% and 1.5%, respectively. Akzo Nobel edged 2.9% up, after its investor, Elliot Management, forced the company to enter into talks with PPG Industries about a merger. BASF added 1.1%, after the company inked a deal to sell its leather chemicals business to Stahl. On the flipside, Credit Suisse Group declined 2.0%, amid reports that the company is considering a $3.0 billion share sale rather than pursuing a separate listing for its Swiss banking division. The FTSEurofirst 300 index gained 0.8%, to close at 1,487.0. Among other European markets, the German DAX Xetra 30 rose 1.1%, to close at 12,039.7, while the French CAC-40 advanced 0.8%, to settle at 5,032.8.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning. In Japan, Toshiba has surged 8.2%, amid news that Effissimo Capital Management has become its largest shareholder after the latter amassed an 8.1% stake in the company. Exporters, Mazda Motor, Toyota Motor and Sony have advanced 0.5%, 1.0% and 2.1%, respectively, on weaker Japanese Yen. In Hong Kong, brokers, Haitong Securities and CITIC Securities have fallen 0.3% and 0.7%, respectively. In South Korea, Samsung Electronics has slipped 0.8%, after the company announced that it would be difficult to adopt a holding company structure and rejected Elliott Management’s proposal. Samsung C&T Corp has plunged 7.4%, following these comments. The Nikkei 225 index is trading 0.8% higher at 19,238.9. The Hang Seng index is trading 0.1% down at 24,308.6, while the Kospi index is trading 0.3% lower at 2,166.7.
Key Corporate Announcements Today
AGMs
Beazley
EGMs
All Asia Asset Capital Limited (DI)
Final Dividend Payment Date
Downing Three VCT D Share, Downing Two VCT D Share, Henderson Opportunities Trust, Hollywood Bowl Group, LPA Group
Interim Dividend Payment Date
Berkeley Group Holdings (The), Hollywood Bowl Group, Invesco Perpetual UK Small Companies Inv Trust
Quarterly Payment Date
Aberdeen Diversified Income and Growth Trust, Alpha Real Trust Ltd., Brunner Inv Trust, The SME Loan Fund
Key Corporate Announcements for Monday
AGMs
Temple Bar Inv Trust, Toople
Final Dividend Payment Date
Aberdeen UK Tracker Trust
Interim Dividend Payment Date
Mountview Estates, Personal Group Holdings
Quarterly Payment Date
Royal Dutch Shell 'A', Royal Dutch Shell 'B', Tetragon Financial Group Limited
Key Economic News
UK retail sales rose more than expected in February
In February, on a YoY basis, retail sales registered a rise of 3.70% in the UK, more than market expectations for a rise of 2.60%. In the prior month, retail sales had recorded a revised rise of 1.00%.
UK retail sales advanced more than expected in February
In February, retail sales rose 1.40% on a monthly basis in the UK, compared to a revised drop of 0.50% in the prior month. Market expectation was for retail sales to rise 0.40%.
UK CBI distributive trade survey's retail sales balance remained flat in March
The CBI distributive trade survey's retail sales balance in the UK remained unchanged at a level of 9.00% in March. Market expectation was for the CBI distributive trade survey's retail sales balance to fall to a level of 4.00%.
Euro-zone consumer confidence index advanced in March
The flash consumer confidence index climbed to -5.00 in the Euro-zone, in March, higher than market expectations of an advance to a level of -5.90. The consumer confidence index had recorded a level of -6.20 in the prior month.
German consumer confidence index unexpectedly dropped in April
The consumer confidence index in Germany fell unexpectedly to a level of 9.80 in April, compared to a level of 10.00 in the previous month. Markets were anticipating the consumer confidence index to record a flat reading.
French production outlook indicator surprisingly slid in March
In France, the production outlook indicator fell unexpectedly to 3.00 in March, lower than market expectations of a rise to 7.00. In the prior month, the production outlook indicator had recorded a level of 5.00.
French industrial business climate index slid in March
In March, the industrial business climate index in France dropped to 104.00, at par with market expectations. In the prior month, the industrial business climate index had registered a revised reading of 105.00.
French own-company production outlook fell in March
Compared to a revised reading of 19.00 in the previous month own-company production outlook in France recorded a drop to 12.00 in March. Markets were expecting own-company production outlook to fall to a level of 17.00.
US Kansas City Fed manufacturing activity index surprisingly climbed in March
In March, the Kansas City Fed manufacturing activity index in the US recorded an unexpected rise to a level of 20.00, higher than market expectations of a steady reading. In the prior month, the Kansas City Fed manufacturing activity index had registered a reading of 14.00.
US continuing jobless claims surprisingly fell in the last week
In the week ended 11 March 2017, the seasonally adjusted continuing jobless claims in the US recorded an unexpected drop to 2000.00 K, compared to market expectations of a rise to a level of 2040.00 K. Continuing jobless claims had recorded a revised level of 2039.00 K in the prior week.
US new home sales rose in February
Compared to a revised level of 558.00 K in the previous month, new home sales recorded a rise of 6.10%, on MoM basis, to a level of 592.00 K in February, in the US. Markets were expecting new home sales to climb to 564.00 K.
US initial jobless claims unexpectedly rose in the last week
The seasonally adjusted initial jobless claims registered an unexpected rise to 258.00 K in the US, in the week ended 18 March 2017, compared to market expectations of a drop to 240.00 K. Initial jobless claims had registered a revised reading of 243.00 K in the prior week.
Foreign investors became net sellers of Japanese stocks in the previous week
Foreign investors were net sellers of ¥580.40 billion worth of Japanese stocks in the week ended 17 March 2017, as compared to being net sellers of ¥722.70 billion worth of Japanese stocks in the prior week.
Japanese investors remained net sellers of foreign stocks in the previous week
Japanese investors remained net sellers of ¥465.70 billion worth of foreign stocks in the week ended 17 March 2017, as compared to being net sellers of a revised ¥360.60 billion worth of foreign stocks in the previous week.
Japanese investors turned net buyers of foreign bonds in the previous week
Japanese investors turned net buyers of ¥149.40 billion worth of foreign bonds in the week ended 17 March 2017, as compared to being net sellers of a revised ¥696.10 billion worth of foreign bonds in the previous week.
Foreign investors became net sellers of Japanese bonds in the previous week
Foreign investors remained net sellers of ¥586.80 billion worth of Japanese bonds in the week ended 17 March 2017, from being net sellers of a revised ¥49.50 billion worth of Japanese bonds in the prior week.
Japanese manufacturing PMI dropped in March
The preliminary manufacturing PMI registered a drop to 52.60 in Japan, in March. Manufacturing PMI had recorded a reading of 53.30 in the prior month.