UK Market Snapshot
UK markets finished in negative territory on Friday, weighed down by a slump in mining sector stocks. Miners, Rio Tinto, BHP Billiton and Anglo American declined 2.5%, 2.9% and 3.4%, respectively, amid lower metal prices. Energy giants, BP and Royal Dutch Shell dropped 0.9% and 1.3%, respectively, tracking losses in oil prices. On the flipside, National Grid added 0.8%, after the company announced that it sold 61.0% of its equity interest in its UK gas distribution business to a consortium of long-term infrastructure investors. BT Group gained 0.4%, after the UK’s communications regulator announced that it could force the company to reduce its price that can be charged by its Openreach to other rivals for its popular superfast broadband service to protect customers and promote competition. The FTSE 100 declined 0.6%, to close at 7,322.9, while the FTSE 250 fell 0.2%, to settle at 18,971.8.
US Market Snapshot
US markets closed lower on Friday, led by losses in financial sector stocks. Banks, Goldman Sachs Group, Bank of America and JPMorgan Chase dropped 0.7%, 1.2% and 1.3%, respectively. NantHealth declined 2.6%, after the company posted downbeat revenue for the fourth quarter. Oil stocks, Chevron and Exxon Mobil slid 0.4% and 2.0%, respectively. Bucking the trend, Akari Therapeutics rallied 58.5%, after the company was granted a “fast-track” designation to one of its treatments by the US FDA. FMC surged 13.2%, after EI du Pont de Nemours, down 1.6%, announced that it would sell its crop protection business to the former for $1.2 billion in cash and FMC Health and Nutrition. BlackBerry soared 11.5%, after the company reported better than expected fourth quarter profit. The S&P 500 slipped 0.2%, to settle at 2,362.7. The DJIA shed 0.3%, to settle at 20,663.2, while the NASDAQ marginally fell, to close at 5,911.7.
Europe Market Snapshot
Other European markets ended in the green on Friday, as the Euro-zone’s consumer price inflation fell more than expected in March, adding pressure on the European Central Bank to continue with its monetary stimulus measures. Phoenix Solar surged 6.7%, after the company posted positive EBIT for 2016 and projected strong revenue and earnings growth for 2017. Siemens added 0.5%, after the company closed acquisition deal of Mentor Graphics. On the losing side, Genmab tumbled 5.0%, after the company’s partner, Janssen Pharmaceutical, made a decision that it would not start the second stage of a study of its key drug. Geberit dropped 1.7%, after a leading broker downgraded its rating on the stock to ‘Neutral’ from ‘Buy’. The FTSEurofirst 300 index gained 0.2%, to close at 1,503.0. Among other European markets, the German DAX Xetra 30 rose 0.5%, to close at 12,312.9, while the French CAC-40 advanced 0.6%, to settle at 5,122.5.
Asia Market Snapshot
Markets in Asia are trading higher this morning, ahead of the US President, Donal Trump’s meeting with Chinese President, Xi Jinping, held later this week. In Japan, food companies, Suntory Beverage & Food, Ajinomoto and MEIJI Holdings have advanced 1.7%, 1.9% and 2.3%, respectively. On the contrary, Toshiba has tumbled 4.6%, after reports indicated that the company could miss the third deadline to report its quarterly business result. In Hong Kong, gaming stocks, Galaxy Entertainment Group, Sands China and Melco International Development have climbed 0.2%, 0.3% and 1.6%, respectively. In South Korea, index majors, Samsung Electronics, LG Electronics and SK Hynix have risen 0.7%, 0.9% and 2.0%, respectively. The Nikkei 225 index is trading 0.4% higher at 18,977.4. The Hang Seng index is trading 0.4% up at 24,215.3, while the Kospi index is trading 0.2% higher at 2,164.1.
Key Corporate Announcements Today
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CVC Credit Partners European Opportunities Ltd GBP
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Cyanconnode Holdings, IGas Energy
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Concurrent Technologies, Tritax Big Box Reit, WYG
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JP Morgan Chase & Co
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Topps Tiles
Key Economic News
UK house prices advanced less than expected in March
The non-seasonally adjusted house prices climbed 3.50% on an annual basis in March, in the UK, compared to an advance of 4.50% in the previous month. Markets were anticipating house prices to climb 4.00%.
UK total business investment fell as expected in 4Q 2016
In 4Q 2016, on an annual basis, the final total business investment in the UK registered a drop of 0.90%, meeting market expectations. The preliminary figures had also recorded a fall of 0.90%. In the prior quarter, total business investment had registered a drop of 2.30%.
UK GDP advanced less than expected in 4Q 2016
The final gross domestic product (GDP) climbed 1.90% on a YoY basis in the UK, in 4Q 2016, compared to an advance of 2.20% in the previous quarter. Markets were anticipating GDP to advance 2.00%. The preliminary figures had recorded a rise of 2.00%.
UK current account deficit fell in 4Q 2016
The UK has registered current account deficit of £12.10 billion in 4Q 2016, compared to a revised current account deficit of £25.70 billion in the previous quarter. Market anticipation was for the nation to register a current account deficit of £16.00 billion.
UK GDP rose as expected in 4Q 2016
In 4Q 2016, on a QoQ basis, the final GDP in the UK advanced 0.70%, at par with market expectations. GDP had climbed 0.60% in the previous quarter. The preliminary figures had also indicated an advance of 0.70%.
UK index of services surprisingly dropped in January
The index of services in the UK unexpectedly eased 0.10% in January on a MoM basis, lower than market expectations for a rise of 0.20%. In the previous month, the index of services had climbed 0.20%.
UK house prices surprisingly eased in March
On a monthly basis, in March, the seasonally adjusted house prices unexpectedly fell 0.30% in the UK, compared to a rise of 0.60% in the prior month. Market expectation was for house prices to climb 0.30%.
UK total business investment declined less than expected in 4Q 2016
On a QoQ basis, the final total business investment recorded a drop of 0.90% in 4Q 2016, in the UK, lower than market expectations for a drop of 1.00%. The preliminary figures had recorded a drop of 1.00%. In the prior quarter, total business investment had climbed 0.70%.
UK index of services rose less than expected in January
On a monthly basis, the index of services in the UK rose 0.60% in January, lower than market expectations for a rise of 0.70%. In the October-December 2016 period, the index of services had risen 0.80%.
Euro-zone core CPI rose less than expected in March
In March, on a YoY basis, the flash core consumer price index (CPI) rose 0.70% in the Euro-zone, compared to a rise of 0.90% in the prior month. Markets were expecting the core CPI to rise 0.80%.
Euro-zone CPI advanced less than expected in March
In the Euro-zone, the preliminary CPI advanced 1.50% on a YoY basis in March, less than market expectations for an advance of 1.80%. In the prior month, the CPI had registered a rise of 2.00%.
German unemployment rate surprisingly eased in March
The seasonally adjusted unemployment rate dropped unexpectedly to 5.80% in March, in Germany, compared to a level of 5.90% in the previous month. Markets were anticipating unemployment rate to remain unchanged.
German retail sales unexpectedly dropped in February
In February, retail sales in Germany registered an unexpected drop of 2.10% on a YoY basis, less than market expectations for an advance of 0.40%. In the prior month, retail sales had recorded a revised rise of 2.70%.
German number of people unemployed dropped more than expected in March
The number of people unemployed in Germany registered a drop of 30.00 K in March, compared to a revised drop of 15.00 K in the previous month. Market anticipation was for the number of people unemployed to ease 10.00 K.
German retail sales rose more than expected in February
In February, on a MoM basis, retail sales advanced 1.80% in Germany, more than market expectations for an advance of 0.70%. In the prior month, retail sales had dropped by a revised 1.00%.
French EU normalised CPI rose as expected in March
In March, on a MoM basis, the flash EU normalised CPI in France registered a rise of 0.70%, at par with market expectations. In the prior month, EU normalised CPI had climbed 0.20%.
French CPI (ex-tobacco) advanced less than expected in March
In March, on a monthly basis, the preliminary CPI (ex-tobacco) recorded a rise of 0.60% in France, lower than market expectations for a rise of 0.70%. In the prior month, the CPI (ex-tobacco) had risen 0.10%.
French PPI eased in February
The producer price index (PPI) in France slid 0.20% on a monthly basis, in February. In the previous month, the PPI had risen by a revised 1.00%.
French CPI (ex-tobacco) rose less than expected in March
The preliminary CPI (ex-tobacco) in France advanced 1.10% on a YoY basis in March, lower than market expectations for an advance of 1.20%. In the prior month, the CPI (ex-tobacco) had advanced 1.20%.
French consumer spending surprisingly eased in February
On a monthly basis, consumer spending unexpectedly dropped 0.80% in France, in February, lower than market expectations for an advance of 0.10%. In the prior month, consumer spending had registered a rise of 0.60%.
Italian CPI remained steady in March
On a MoM basis in March, the flash CPI remained unchanged in Italy, less than market expectations for a rise of 0.10%. In the previous month, the CPI had risen 0.30%.
Italian EU normalised CPI advanced less than expected in March
In March, on a monthly basis, the flash EU normalised CPI advanced 1.80% in Italy, lower than market expectations for an advance of 2.10%. The EU normalised CPI had climbed 0.20% in the prior month.
Italian PPI recorded a rise in February
The PPI climbed 0.30% in Italy on a MoM basis, in February. In the prior month, the PPI had climbed by a revised 1.20%.
Italian PPI climbed in February
On an annual basis, the PPI climbed 3.70% in February, in Italy. In the previous month, the PPI had climbed by a revised 2.90%.
Spanish retail sales remained unchanged in February
On a YoY basis, retail sales in Spain remained flat in February, lower than market expectations for a rise of 0.90%. In the previous month, retail sales had recorded a rise of 0.10%.
Spanish current account surplus dropped in January
Current account surplus in Spain narrowed to € 0.40 billion in January. Spain had reported a revised current account surplus of € 3.60 billion in the prior month.
US core personal consumption expenditure rose as expected in February
In February, on a MoM basis, core personal consumption expenditure in the US climbed 0.20%, at par with market expectations. Core personal consumption expenditure had registered a rise of 0.30% in the prior month.
US personal income advanced as expected in February
On a MoM basis, in the US, personal income recorded a rise of 0.40% in February, at par with market expectations. In the previous month, personal income had registered a revised rise of 0.50%.
US Chicago Fed purchasing managers index unexpectedly advanced in March
Compared to a reading of 57.40 in the previous month the Chicago Fed purchasing managers index rose unexpectedly to 57.70 in March, in the US. Markets were anticipating the Chicago Fed purchasing managers index to ease to a level of 56.90.
US Reuters/Michigan consumer sentiment index registered a rise in March
In March, the final Reuters/Michigan consumer sentiment index in the US climbed to 96.90, compared to a reading of 96.30 in the previous month. The preliminary figures had recorded an advance to 97.60. Markets were anticipating the Reuters/Michigan consumer sentiment index to rise to a level of 97.60.
US personal consumption expenditure deflator advanced as expected in February
In February, on a MoM basis, personal consumption expenditure deflator climbed 0.10% in the US, at par with market expectations. Personal consumption expenditure deflator had advanced 0.40% in the previous month.
US personal consumption expenditure deflator advanced as expected in February
In the US, personal consumption expenditure deflator registered a rise of 2.10% on an annual basis in February, in line with market expectations. In the previous month, personal consumption expenditure deflator had climbed 1.90%.
US personal spending advanced less than expected in February
In February, personal spending rose 0.10% on a MoM basis in the US, less than market expectations for a rise of 0.20%. In the previous month, personal spending had registered a rise of 0.20%.
US core personal consumption expenditure rose more than expected in February
On a YoY basis in the US, core personal consumption expenditure recorded a rise of 1.80% in February, compared to a revised similar rise in the previous month. Market anticipation was for core personal consumption expenditure to climb 1.70%.
Canadian GDP rose more than expected in January
In Canada, the gross domestic product rose 2.30% in January on a YoY basis, more than market expectations for an advance of 1.90%. The GDP had recorded a revised rise of 2.10% in the previous month.
Canadian GDP advanced more than expected in January
The GDP rose 0.60% in Canada on a MoM basis in January, compared to a rise of 0.30% in the previous month. Market anticipation was for the GDP to climb 0.30%.
Japanese Tankan large manufacturing outlook index rose in 1Q 2017
In Japan, the Tankan large manufacturing outlook index recorded a rise to 11.00 in 1Q 2017, compared to market expectations of an advance to a level of 13.00. The Tankan large manufacturing outlook index had recorded a level of 8.00 in the prior quarter.
Japanese Tankan large manufacturing index climbed in 1Q 2017
The Tankan large manufacturing index advanced to 12.00 in Japan, in 1Q 2017, compared to market expectations of an advance to 14.00. In the previous quarter, the Tankan large manufacturing index had recorded a reading of 10.00.
Japanese annualised housing starts eased in February
The annualised housing starts dropped to 0.94 mn units in February, in Japan, lower than market expectations of a drop to a level of 0.95 mn units. In the prior month, the annualised housing starts had recorded a reading of 1.00 mn units.
Japanese Tankan non-manufacturing index recorded a rise in 1Q 2017
The Tankan non-manufacturing index recorded a rise to 20.00 in 1Q 2017, in Japan, compared to a level of 18.00 in the previous quarter. Markets were expecting the Tankan non-manufacturing index to advance to 19.00.
Japanese construction orders advanced in February
Construction orders advanced 5.70% on an annual basis in Japan, in February. In the prior month, construction orders had risen 1.10%.
Japanese Tankan large all industry capex surprisingly rose in 1Q 2017
Tankan large all industry capex in Japan unexpectedly climbed 0.60% in 1Q 2017 on a QoQ basis, more than market expectations for a drop of 0.30%. Tankan large all industry capex had registered a rise of 5.50% in the previous quarter.
Japanese Tankan non-manufacturing outlook index steadied in 1Q 2017
The Tankan non-manufacturing outlook index remained flat at 16.00 in 1Q 2017, in Japan, lower than market expectations of a rise to 19.00.
Japanese manufacturing PMI slid in March
In March, the final manufacturing PMI registered a drop to 52.40 in Japan, compared to a level of 53.30 in the prior month. The preliminary figures had recorded a drop to 52.60.
Japanese housing starts fell more than expected in February
On a YoY basis, housing starts eased 2.60% in February, in Japan, compared to an advance of 12.80% in the prior month. Market anticipation was for housing starts to fall 1.40%.