UK Market Snapshot
UK markets finished higher yesterday, supported by gains in real estate and utility firms. Intu Properties advanced 2.2%, after a broker upgraded its rating on the stock to ‘Buy’ from ‘Sell’ and also raised its price target to 285.0p from 265.0p. Peer, Land Securities Group rose 1.7%. Centrica rose 1.9%, after stating that it would achieve its 2017 targets despite reporting disappointing first quarter results. On the other hand, Talktalk Telecom Group lost 4.2%, after a report stated that it would cut its dividend in its annual results. Numis fell 3.0%, after it reported a drop in its pretax profit for the half year and announced that its founder Oliver Hemsley would step down with immediate effect. Mining stocks, BHP Billiton, Rio Tinto, Glencore and Antofagasta slid 1.3%, 1.5%, 1.6% and 2.0%, respectively, following weaker than expected trade data from China. The FTSE 100 advanced marginally, to close at 7,300.9, while the FTSE 250 rose 0.2%, to settle at 19,729.7.
US Market Snapshot
US markets closed a tad higher yesterday, as materials shares capped gains in energy sector stocks. Straight Path Communications rallied 33.0%, after an unnamed telecommunications company raised its offer to buy the wireless spectrum holder. Kate Spade jumped 8.3%, after its bigger competitor, Coach, up 4.8%, announced that it would buy the handbag maker for $2.4 billion to increase its exposure to millennial shoppers. Tribune Media rose 5.2%, after Sinclair Broadcast Group, down 2.2%, agreed to buy the former in a cash and stock deal worth $3.9 billion. Oil firms, Chevron and Exxon Mobil added 0.8% and 1.1%, respectively. On the downside, Tyson Foods plunged 6.1%, after it reported a decline in its net income for the quarter ended 01 April 2017. The S&P 500 gained marginally, to settle at 2,399.4. The DJIA rose marginally, to settle at 21,012.3, while the NASDAQ advanced marginally, to close at 6,102.7.
Europe Market Snapshot
Other European markets ended lower yesterday, with banks and resources stocks featuring among major decliners. Meanwhile, economic data showed that the Euro-zone investor confidence rose to a near decade high level in May. Akzo Nobel lost 3.2%, after the Dutch paint maker rejected a third takeover offer from its US rival, PPG Industries, stating that it undervalued the company. French lenders, Credit Agricole, BNP Paribas and Societe Generale slid 0.7%, 1.5% and 2.5%, respectively. PostNL dropped 6.0%, after its revenue growth in the first quarter trailed market expectations. On the contrary, Hennes & Mauritz advanced 1.6%, after the company reported an increase in its April sales. The FTSEurofirst 300 index declined 0.1%, to close at 1,547.7. Among other European markets, the German DAX Xetra 30 slid 0.2%, to close at 12,694.6, while the French CAC-40 slipped 0.9%, to settle at 5,383.0.
Asia Market Snapshot
Markets in Asia are trading mixed this morning. In Japan, Denka, Toho Zinc and Mitsui Mining & Smelting have fallen 2.9%, 3.0% and 3.1%, respectively. On the flipside, Tokyo Electric Power Company Holding and Nichirei Corp have risen 2.7% and 3.3%, respectively. Exporters, Sony, Canon and Toshiba have gained 1.0%, 1.1% and 3.0%, respectively, amid a weaker Japanese Yen. In Hong Kong, Air China and China Southern Airlines have advanced 1.6% and 2.7%, respectively. Markets in South Korea are closed today for Presidential election. The Nikkei 225 index is trading 0.1% lower at 19,880.0, while the Hang Seng index is trading 0.4% up at 24,672.0. Yesterday, the Kospi index rose 2.3% to close at 2,292.8.
Key Corporate Announcements Today
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 Corporate Announcements for Tomorrow
AGMs
Aberdeen Asian Income Fund Ltd., Anglo Pacific Group, Aviva, BAE Systems, Barclays, Be Heard Group, British Smaller Companies VCT 2, Cape, Dalata Hotel Group, Ebiquity, EKF Diagnostics Holdings, GLI Finance Limited, HGCapital Trust, IP Group, ITV, Marshalls, Mobeus Income & Growth Vct, National Express Group, Novae Group, OneSavings Bank, Parity Group, Permanent TSB Group Holdings, Rentokil Initial, Vesuvius, Wood Group (John), Worldpay Group, Norish
Final Dividend Payment Date
Smith & Nephew, Stadium Group, Virgin Money Holdings (UK)
Interim Dividend Payment Date
Finsbury Growth & Income Trust
Quarterly Payment Date
JPMorgan Asian Investment Trust
Trading Announcements
Barratt Developments, Cape, ITV, Novae, Vesuvius
Key Economic News
UK Halifax house price index rose more than expected in the February-April 2017 period
On a YoY basis, the Halifax house price index advanced 3.80% in the UK, in the February-April 2017 period, more than market expectations for a rise of 3.60%. The Halifax house price index had registered a similar rise in the January-March 2017 period.
UK Halifax house price index unexpectedly dropped in April
On a MoM basis in April, the Halifax house price index registered an unexpected drop of 0.10% in the UK, lower than market expectations for a rise of 0.10%. In the previous month, the Halifax house price index had registered an unchanged reading.
UK retail sales across all sectors rose more than expected in April
In April, retail sales across all sectors advanced 5.60% in the UK on a YoY basis, compared to a drop of 1.00% in the prior month. Markets were anticipating retail sales across all sectors to rise 0.50%.
Euro-zone investor confidence index rose in May
In May, the investor confidence index climbed to 27.40 in the Euro-zone, compared to market expectations of an advance to 25.20. The investor confidence index had recorded a reading of 23.90 in the previous month.
German factory orders rose more than expected in March
In March, on a MoM basis, the seasonally adjusted factory orders advanced 1.00% in Germany, compared to a revised advance of 3.50% in the previous month. Market anticipation was for factory orders to rise 0.70%.
German factory orders advanced more than expected in March
In March, the non-seasonally adjusted factory orders advanced 2.40% on a YoY basis in Germany, more than market expectations for a rise of 2.10%. In the prior month, factory orders had advanced by a revised 4.70%.
Canadian housing starts declined in April
The seasonally adjusted housing starts in Canada eased to 214.10 K in April, compared to market expectations of a fall to a level of 215.00 K. In the previous month, housing starts had recorded a revised level of 252.30 K.
Japanese consumer confidence index eased in April
In April, the consumer confidence index fell to a level of 43.20 in Japan, lower than market expectations of a fall to a level of 43.50. In the previous month, the consumer confidence index had recorded a level of 43.90.
Japanese labour cash earnings surprisingly dropped in March
On an annual basis, labour cash earnings recorded an unexpected drop of 0.40% in Japan, in March, compared to a rise of 0.40% in the previous month. Market anticipation was for labour cash earnings to advance 0.50%.