UK Market Snapshot
UK markets finished higher on Friday, amid a rebound in crude oil prices and some robust earnings announcements. Pearson soared 12.4%, after the company stated that it would launch a review of its struggling US learning-products business and announced additional cost cutting measures. International Consolidated Airlines Group climbed 5.5%, after it reported higher than expected profit for the first quarter, as a drop in costs offset lower passenger revenues. Smith & Nephew gained 2.8%, as it maintained its full year outlook after reporting flat revenue for the first quarter. Energy sector stocks, BP and Royal Dutch Shell rose 1.5% and 2.1%, respectively. On the contrary, Barclays fell 2.6%, following a broker downgrade on the stock to ‘Sell’ from ‘Neutral’, who also reduced its price target to 180.0p. The FTSE 100 advanced 0.7%, to close at 7,297.4, while the FTSE 250 rose 0.1%, to settle at 19,699.6.
US Market Snapshot
US markets ended in the green on Friday, as energy shares bounced back on higher crude oil prices and US economy added more than expected jobs in April. Zynga surged 12.7%, after it posted upbeat earnings for the first quarter and projected strong second quarter bookings. Chesapeake Energy jumped 6.4%, after analysts gave positive opinion about the company following its first quarter results. Cigna Corp rose 2.3%, after it reported an increase in its first quarter profit and it added new members in its Obamacare individual business. On the downside, Revlon plunged 23.6%, as it reported an annual decline in its earnings for the first quarter. International Business Machines lost 2.5%, after Warren Buffett led Berkshire Hathaway sold about one-third of its stake in the company. The S&P 500 gained 0.4%, to settle at 2,399.3. The DJIA rose 0.3%, to settle at 21,006.9, while the NASDAQ advanced 0.4%, to close at 6,100.8.
Europe Market Snapshot
Other European markets closed firmer on Friday, as strength in the US labour market raised optimism about global growth and expectations remained that Macron would win the French presidential election. Vestas Wind Systems surged 5.1%, after it reported an upbeat net profit for the first quarter due to strong sales in the US, Germany and China. Oil majors, Total and Eni advanced 2.0% and 2.5%, respectively, tracking gains in crude oil prices. Vivendi rose 2.4%, after ten candidates nominated by the company were elected to the Telecom Italia, up 2.4%, board, thus tightening its grip on the Italian firm. On the losing side, JCDecaux dropped 4.1%, after the outdoor advertising firm reported a fall in its first quarter revenue amid weakness in its billboard and transport segments. The FTSEurofirst 300 index gained 0.7%, to close at 1,549.4. Among other European markets, the German DAX Xetra 30 rose 0.5%, to close at 12,716.9, while the French CAC-40 advanced 1.1%, to settle at 5,432.4.
Asia Market Snapshot
Markets in Asia are trading higher this morning, with investor sentiment getting a lift after the pro-European Union centrist candidate Emmanuel Macron defeated far-right candidate Marine Le Pen in the French polls. In Japan, Ricoh and Daiwa House Industry have rallied 4.3% and 5.2%, respectively. Exporters, Canon, Panasonic and Sony have climbed 1.4%, 2.7% and 3.2%, respectively, amid a weaker Japanese Yen. Energy majors, JXTG Holdings and Inpex have added 2.1% and 3.1%, respectively. In Hong Kong, CNOOC and China Petroleum & Chemical Corp have gained 0.3% and 1.2%, respectively. In South Korea, index majors, Samsung Electronics and LG Electronics have risen 0.2% and 5.7%, respectively. The Nikkei 225 index is trading 1.8% higher at 19,795.2. The Hang Seng index is trading 0.4% up at 24,565.7, while the Kospi index is trading 0.6% higher at 2,254.5.
Key Corporate Announcements Today
AGMs
Centrica, Costain Group, Mobeus Income & Growth 4 Vct, PPHE Hotel Group Ltd, PureTech Health, Global Graphics
Final Dividend Payment Date
CareTech Holding
Interim Dividend Payment Date
Tiso Blackstar Group SE (DI)
Quarterly Payment Date
Blue Capital Global Reinsurance Fund Ltd (DI)
Trading Announcements
Centrica, Liberty Global
Key Corporate Announcements for Tomorrow
AGMs
Amerisur Resources, Blue Capital Global Reinsurance Fund Ltd (DI), Capital & Regional, Cello Group, Centaur Media, Frontier Smart Technologies Group Limited, Goals Soccer Centres, Grafton Group Units, Henderson High Income Trust, IFG Group, Macfarlane Group, Non-Standard Finance, Paysafe Group, Randall & Quilter Investment Holdings (DI), Rightmove, Savills, Spirax-Sarco Engineering, William Hill, 4imprint, Pentair, Property Franchise, Manchester United
Final Dividend Payment Date
Fisher (James) & Sons
Quarterly Ex-Dividend Date
IBM Corp.
Trading Announcements
Aon, Belmond, Dialog Semiconductor, Spirax-Sarco Engineering, Travelport Worldwide, William Hill
Key Economic News
Spanish calendar adjusted industrial output rose less than expected in March
On an annual basis, the calendar adjusted industrial output in Spain climbed 0.40% in March, less than market expectations for an advance of 2.00%. In the previous month, the calendar adjusted industrial output had advanced 2.50%.
Swiss foreign currency reserves rose in April
In April, foreign currency reserves advanced to CHF 695.90 billion in Switzerland, compared to a level of CHF 683.20 billion in the previous month. Markets were anticipating foreign currency reserves to climb to CHF 690.50 billion.
Swiss UBS real estate bubble index rose in 1Q 2017
The UBS real estate bubble index in Switzerland climbed to 1.39 in 1Q 2017. In the previous quarter, the UBS real estate bubble index had registered a revised level of 1.33.
Private payrolls in the US rose in April
Private payrolls in the US recorded an increase of 194.00 K in April, compared to a revised advance of 77.00 K in the previous month. Markets were expecting private payrolls to advance 190.00 K.
US underemployment rate dropped in April
In April, underemployment rate dropped to 8.60% in the US. Underemployment rate had recorded a reading of 8.90% in the prior month.
Manufacturing payrolls in the US advanced in April
In the US, manufacturing payrolls advanced by 6.00 K in April, lower than market expectations of an advance of 10.00 K. Manufacturing payrolls had recorded a revised gain of 13.00 K in the previous month.
Non-farm payrolls in the US increased in April
Non-farm payrolls in the US registered a rise of 211.00 K in April, higher than market expectations of an advance of 190.00 K. Non-farm payrolls had recorded a revised increase of 79.00 K in the previous month.
US unemployment rate unexpectedly dropped in April
In April, unemployment rate fell unexpectedly to 4.40% in the US, compared to a level of 4.50% in the prior month. Markets were anticipating unemployment rate to advance to a level of 4.60%.
US average weekly hours of all employees rose in April
In April, average weekly hours of all employees in the US recorded a rise to 34.40, meeting market expectations. Average weekly hours of all employees had recorded a reading of 34.30 in the prior month.
US average hourly earnings of all employees rose less than expected in April
In April, average hourly earnings of all employees advanced 2.50% on a YoY basis in the US, lower than market expectations for a rise of 2.70%. Average hourly earnings of all employees had registered a revised rise of 2.60% in the prior month.
US average hourly earnings of all employees rose as expected in April
On a MoM basis, average hourly earnings of all employees registered a rise of 0.30% in April, in the US, in line with market expectations. In the prior month, average hourly earnings of all employees had registered a revised rise of 0.10%.
US consumer credit rose more than expected in March
In March, consumer credit advanced $16.43 billion in the US, compared to a revised advance of $13.75 billion in the prior month. Market anticipation was for consumer credit to climb $14.50 billion.
Household employment in the US increased in April
In the US, household employment rose by 156.00 K in April. Household employment had registered a loss of 47.00 K in the previous month.
Canadian Ivey PMI rose in April
Compared to a reading of 61.10 in the prior month the seasonally adjusted Ivey PMI advanced to 62.40 in Canada, in April.
Canadian participation rate dropped in April
The participation rate in Canada fell to a level of 65.60% in April. In the prior month, the participation rate had registered a level of 65.90%.
Canadian Ivey PMI dropped in April
The non-seasonally adjusted Ivey PMI in Canada fell to a level of 58.50 in April, compared to a reading of 67.60 in the previous month.
Part time employment in Canada advanced in April
In Canada, part time employment rose by 34.30 K in April. Part time employment had registered an increase of 1.00 K in the prior month.
Number of full time employment in Canada slid in April
The number of full time employment in Canada fell by 31.20 K in April. The number of full time employment had recorded a gain of 18.40 K in the previous month.
Net number of people employed in Canada increased in April
The net number of people employed rose by 3.20 K in Canada, in April, lower than market anticipations of an advance of 10.00 K. The net number of people employed had registered a gain of 19.40 K in the prior month.
Canadian unemployment rate unexpectedly fell in April
In Canada, the unemployment rate unexpectedly dropped to 6.50% in April, compared to market expectations of a steady reading. In the prior month, the unemployment rate had registered a level of 6.70%.
Chinese trade surplus expanded in April
China has registered trade surplus of $38.05 billion in April, compared to a trade surplus of $23.93 billion in the prior month. Markets were anticipating the nation to record a trade surplus of $35.50 billion.
Chinese imports advanced less than expected in April
On a YoY basis, in April, imports registered a rise of 11.90% in China, less than market expectations for a rise of 18.00%. Imports had recorded a rise of 20.30% in the previous month.
Chinese exports rose less than expected in April
On a YoY basis in China, exports advanced 8.00% in April, less than market expectations for an advance of 10.40%. Exports had registered a rise of 16.40% in the prior month.