UK Market Snapshot
UK markets finished in negative territory yesterday, weighed down by a slump in mining and supermarket shares. Miners, BHP Billiton, Antofagasta and Rio Tinto declined 2.0%, 2.4% and 2.7%, tracking losses in base metal prices. J Sainsbury tumbled 5.7%, after the company reported a drop in its full-year like-for-like sales, excluding fuel and trimmed its final dividend payout. Other supermarkets, Wm Morrison Supermarkets and Tesco dropped 1.4% and 3.4%, respectively, after a report stated that they lost their market share in the first three months of the year. ITV slid 1.8%, after the company announced that its CEO, Adam Crozier, would step down from his role on 30 June. Marks & Spencer Group slipped 1.2%, after the retailer appointed Jill McDonald as its new Managing Director for clothing, home and beauty products. On the flipside, Sage Group advanced 3.4%, after the company posted a rise in its first half net profit and raised its dividend. The FTSE 100 declined 0.2%, to close at 7,234.5, while the FTSE 250 fell 0.6%, to settle at 19,683.4.
US Market Snapshot
US markets closed mostly lower yesterday, after the US Federal Reserve (Fed) kept its benchmark interest rates unchanged, as expected and indicated that it remains on track to deliver two more rate hikes by year-end. Molson Coors Brewing declined 4.7%, after the company posted lower than expected earnings for the first quarter. Reynolds American fell 0.6%, after the company reported downbeat results for the first quarter. Apple shed 0.3%, after the company’s iPhone sales for the second quarter missed market estimates. On the positive side, FireEye rallied 12.9%, after it posted upbeat earnings for the first quarter and offered a robust outlook for the second quarter. Weight Watchers International surged 9.3%, after the company swung to a net profit in the first quarter, helped by a growth in its subscribers. The S&P 500 slipped 0.1%, to settle at 2,388.1. The DJIA marginally rose to settle at 20,957.9, while the NASDAQ slid 0.4%, to close at 6,072.6.
Europe Market Snapshot
Other European markets ended mostly higher yesterday, as gains in healthcare stocks outweighed losses in mining firms. Fresenius advanced 2.4%, after the company posted a significant rise in its earnings and sales for the first quarter and raised its guidance for the full year. BNP Paribas added 0.6%, after the lender’s earnings for the first quarter surpassed market estimates amid a surge in bond trading. Bucking the trend, HUGO BOSS declined 2.6%, after the company reported lower than expected like-for-like sales for the first quarter. E.ON slipped 1.6%. The utility firm entered into a partnership deal with Google to introduce its online solar calculator, Sunroof, outside the US. The FTSEurofirst 300 index marginally gained to close at 1,528.2. Among other European markets, the German DAX Xetra 30 rose 0.2%, to close at 12,527.8, while the French CAC-40 shed 0.1%, to settle at 5,301.0.
Asia Market Snapshot
Markets in Asia are trading mixed this morning. Japanese markets are closed today on account of Greenery Day holiday. In Hong Kong, energy giants, CNOOC, PetroChina and Sinopec Oilfield Service have declined 0.6%, 1.8% and 3.7%, respectively, following losses in crude oil prices. On the contrary, Fullshare Holdings has surged 7.9%, after the company rejected allegations made by the US-based short seller, Glaucus Research, about its financial health, claIMIng them to be “misleading and groundless”. In South Korea, SK Hynix, Naver and LG Electronics have advanced 0.2%, 0.9% and 2.0%, respectively, while Samsung Electronics and POSCO have fallen 0.9% and 2.6%, respectively. The Hang Seng index is trading 0.5% down at 24,584.5, while the Kospi index is trading 0.7% higher at 2,234.7.
Key Corporate Announcements Today
AGMs
Computacenter, Elecosoft, GKN, GlaxoSmithKline, Gresham Technologies, IMI, Inmarsat, Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Strategic Holdings Ltd. (Singapore), Johnson Service Group, Ladbrokes Coral Group, Moneysupermarket.com Group, Morgan Sindall Group, Reckitt Benckiser Group, Rolls-Royce Holdings, Sagicor Financial Corporation Limited (DI), St James's Place, Stadium Group, Trinity Mirror, Arbuthnot Banking, Dialog Semiconductor
Final Ex-Dividend Date
Acacia Mining, Card Factory, Cello Group, Coats Group, Croda International, Derwent London, Dunedin Income Growth Inv Trust, Ebiquity, Empresaria Group, EP Global Opportunities Trust, F&C Private Equity Trust, Ferrexpo, H&T Group, Harworth Group, Hastings Group Holdings, Henderson Group, Highcroft Investment, Holders Technology, InterContinental Hotels Group, JRP Group, Kingfisher, London Stock Exchange Group, Lookers, Luceco, Maven Income & Growth VCT, McColl's Retail Group, Microgen, Morgan Advanced Materials, Mortgage Advice Bureau (Holdings), Norsk Hydro ASA, Playtech, Polymetal International, Rightmove, SafeCharge International Group Limited (DI), Servelec Group, SimiGon Ltd. (DI), SThree, Stock Spirits Group, Total Produce, Volga Gas
Final Dividend Payment Date
AFH Financial Group, Amiad Water Systems Ltd, British American Tobacco, Jardine Lloyd Thompson Group, Miton Group, Schroders, Schroders (Non-Voting), SEGRO, Ultra Electronics Holdings
Interim Ex-Dividend Date
AB Dynamics, Albion Development VCT, BlackRock Greater Europe Inv Trust, Blackstone/GSO Loan Financing Limited, British Smaller Companies VCT, Chenavari Capital Solutions Limited Red, CVC Credit Partners European Opportunities Ltd GBP, Ecofin Global Utilities and Infrastructure Trust, Edinburgh Inv Trust, Fair Oaks Income Limited 2017 Shs NPV, GCP Asset Backed Income Fund Limited, GCP Student Living, Henderson Far East Income Ltd., Invesco Perpetual UK Small Companies Inv Trust, James Halstead, P2P Global Investments, Pembroke VCT, Pembroke Vct B, Schroder Real Estate Investment Trust Ltd, Smart (J) & Co., Starwood European Real Estate Finance Ltd, Swallowfield, Symphony International Holdings Ltd., Target Healthcare REIT Ltd, Tritax Big Box Reit
Interim Dividend Payment Date
Volution Group (WI)
Special Ex-Dividend Payment Date
Derwent London, EP Global Opportunities Trust, Henderson Group, Volga Gas
Quarterly Ex-Dividend Date
JPMorgan Claverhouse Inv Trust, SQN Asset Finance Income Fund Limited, SQN Secured Income Fund, Toro Limited, Unilever
Trading Announcements
Morrison (Wm) Supermarkets, Purplebricks Group, RSA Insurance Group, esure, Fisher (James), Glencore, HSBC, IMI, Inmarsat, Lancashire Holdings, Next, OM Asset Management, Randgold Resources, Royal Dutch, Trinity Mirror, Willis Towers Watson
Key Corporate Announcements for Tomorrow
AGMs
AssetCo, BBA Aviation, Capital & Counties Properties, Clarke (T), DP Poland, FBD Holdings, H&T Group, InterContinental Hotels, Man Group, Millennium & Copthorne Hotels, Morgan Advanced Materials, Pearson, RSA Insurance, Smurfit Kappa
EGMs
Goldcrest Resources
Final Dividend Payment Date
Berendsen, CRH, Kingspan Group, Lighthouse Group, Meggitt, Mithras Inv Trust, Nichols, Quartix Holdings, Spirent Communications, Synectics, Telit Communications
Interim Dividend Payment Date
Begbies Traynor Group, Foresight Solar Fund Limited, Redrow, St Ives
Quarterly Payment Date
British Land Company, F & C UK High Income Trust
Trading Announcements
BBA Aviation, easyJet, InterContinental Hotels, International Consolidated Airlines, Millennium & Copthorne, Smith & Nephew
Key Economic News
UK construction PMI unexpectedly rose in April
In the UK, the construction PMI climbed unexpectedly to a level of 53.10 in April, compared to market expectations of a fall to a level of 52.00. In the previous month, the construction PMI had recorded a level of 52.20.
Euro-zone GDP advanced as expected in 1Q 2017
On a QoQ basis, the seasonally adjusted flash gross domestic product (GDP) in the Euro-zone climbed 0.50% in 1Q 2017, compared to an advance of 0.40% in the prior quarter. Markets were anticipating GDP to rise 0.50%.
Euro-zone PPI dropped more than expected in March
In March, the producer price index (PPI) in the Euro-zone registered a drop of 0.30% on a MoM basis, more than market expectations for a drop of 0.10%. The PPI had recorded an unchanged reading in the prior month.
Euro-zone GDP advanced as expected in 1Q 2017
In 1Q 2017, on a YoY basis, the seasonally adjusted flash GDP advanced 1.70% in the Euro-zone, in line with market expectations. GDP had registered a similar rise in the prior quarter.
German number of people unemployed dropped more than expected in April
The number of people unemployed recorded a drop of 15.00 K in Germany in April, compared to a drop of 30.00 K in the prior month. Markets were expecting the number of people unemployed to ease 11.00 K.
German unemployment rate remained steady in April
In April, the seasonally adjusted unemployment rate remained steady at a level of 5.80% in Germany. Markets were expecting unemployment rate to record a flat reading.
FOMC held key interest rate steady
The Federal Open Market Committee (FOMC) unanimously agreed to keep the benchmark interest rate target at 0.75% to 1.00%. The central bank indicated in its statement that a slowdown in the first-quarter US economic growth was “likely to be transitory” and described job gains as “solid”.
US non-manufacturing PMI climbed in April
The non-manufacturing PMI recorded a rise to 57.50 in April, in the US, higher than market expectations of a rise to a level of 55.80. In the previous month, the non-manufacturing PMI had recorded a reading of 55.20.
US mortgage applications dropped in the last week
In the week ended 28 April 2017, on a weekly basis, mortgage applications dropped 0.10% in the US. Mortgage applications had climbed 2.70% in the prior week.
US Markit composite PMI climbed in April
The final Markit composite PMI registered a rise to 53.20 in the US, in April. Markit composite PMI had registered a level of 53.00 in the prior month. The preliminary figures had indicated a drop to 52.70.
US Markit services PMI unexpectedly advanced in April
In April, the final Markit services PMI in the US climbed unexpectedly to 53.10, compared to market expectations of a fall to a level of 52.50. The preliminary figures had indicated a drop to 52.50. In the previous month, Markit services PMI had recorded a level of 52.80.
Private sector employment in the US rose in April
The private sector employment in the US recorded an increase of 177.00 K in April, compared to a revised increase of 255.00 K in the prior month. Markets were expecting the private sector employment to advance 175.00 K.
Chinese Caixin composite PMI dropped in April
Caixin composite PMI dropped to 51.20 in China, in April. In the prior month, Caixin composite PMI had registered a level of 52.10.
Chinese Caixin/Markit services PMI index fell in April
In China, the Caixin/Markit services PMI index fell to a level of 51.50 in April, compared to a reading of 52.20 in the previous month