UK Market Snapshot
UK markets ended in the green yesterday, with the FTSE 100 index extending its gains for a fourth straight session, boosted by a rally in mining sector stocks. Glencore advanced 2.3%, after the miner reversed its plans to shut its eastern Australian coal mine, Tahmoor, and started the process of its sale. Peers, Antofagasta, Anglo American and BHP Billiton climbed 1.0%, 1.1% and 2.2%, respectively. On the losing side, Micro Focus International tumbled 5.7%, after the company announced its disappointment with declining revenue at Hewlett Packard Enterprise business which the former is buying. Utility stocks, Centrica and SSE dropped 1.2%, each, after the British Prime Minister, Theresa May, promised to introduce a cap on unfair energy price rises if she is re-elected on 08 June. The FTSE 100 advanced 0.6%, to close at 7,342.2, while the FTSE 250 rose 0.4%, to settle at 19,817.0.
US Market Snapshot
US markets closed mostly lower yesterday, dragged down by losses in utility, energy and materials sector stocks. Meanwhile, the tech-heavy NASDAQ index closed at a record high level amid upbeat corporate earnings announcements. Oil majors, Exxon Mobil, Chevron and Chesapeake Energy slipped 0.7%, 1.5% and 2.7%, respectively, tracking losses in crude oil prices. Pandora Media declined 4.4%, after a report indicated that the company is confident that it can get a deal done to sell itself within 30 days. Bucking the trend, Valeant Pharmaceuticals International surged 24.1%, after the drug maker posted higher than expected profit for the first quarter and lifted its profit forecast for 2017.Marriott International jumped 6.4%, after its earnings for the first quarter surpassed analysts’ estimates. The S&P 500 slipped 0.1%, to settle at 2,396.9. The DJIA shed 0.2%, to settle at 20,975.8, while the NASDAQ advanced 0.3%, to close at 6,120.6.
Europe Market Snapshot
Other European markets finished in positive territory yesterday, amid a string of well-received corporate earnings reports. The German DAX Xetra 30 index closed at an all-time high level buoyed by upbeat trade balance data in March. Adecco Group advanced 2.2%, after the company reported higher than expected profit for the first quarter, boosted by major markets in southern Europe and modest growth in the US. Commerzbank added 0.6%, after the lender posted upbeat net profit for the first quarter. Akzo Nobel added 0.2%, after Elliott Management began legal proceedings to try to remove former’s Chairman, Antony Burgmans, alleging that he failed to “discharge his fiduciary and corporate governance duties”. The FTSEurofirst 300 index gained 0.4%, to close at 1,554.0. Among other European markets, the German DAX Xetra 30 rose 0.4%, to close at 12,749.1, while the French CAC-40 advanced 0.3%, to settle at 5,398.0.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning, ahead of the inauguration of liberal candidate Moon Jae-in after his win in the South Korean presidential election. In Japan, Mitsubishi Motors has surged 7.9%, after the automaker projected that it will return to profit for the fiscal year ending 31 March 2018. In Hong Kong, banking stocks, Industrial and Commercial Bank of China, China Construction Bank and Bank of China have advanced 1.4%, 1.8% and 1.9%, respectively. On the contrary, energy giants, CNOOC, PetroChina and Sinopec Oilfield Service have slipped 0.2%, 0.4% and 1.5%, respectively. In South Korea, Kobe Steel has gained 0.5%, after Novelis entered into a joint venture with the former naming it Ulsan Aluminum. The Nikkei 225 index is trading 0.3% higher at 19,903.1. The Hang Seng index is trading 0.6% up at 25,048.4, while the Kospi index is trading 0.5% lower at 2,280.8.
Key Corporate Announcements Today
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 Corporate Announcements for Tomorrow
AGMs
Communisis, Convatec Group, Direct Line Insurance Group, Dunedin Enterprise Investment Trust, Hochschild Mining, John Laing Group, Keller Group, Lloyds Banking Group, Melrose Industries, Mondi, Petrofac Ltd., Phoenix Group Holdings (DI), Plant Health Care, Rathbone Brothers, Robinson, Royal Bank of Scotland Group, Serco Group, SIG, Starwood European Real Estate Finance Ltd, TechFinancials (DI), Thalassa Holdings Ltd. (DI), Unite Group, Ascential, Everyman Media
EGMs
Industrial Mlulti Propety Trust, BNN Technology, Tritax Big Box
Final Ex-Dividend Date
AA, Admiral Group, Barr (A.G.), BBGI SICAV S.A. (DI), Carillion, Centaur Media, Central Asia Metals, Centrica, Computacenter, Epwin Group, Fidessa Group, Frenkel Topping Group, Hiscox Limited (DI), Ibstock, Integrated Diagnostics Holdings, Macfarlane Group, Merlin Entertainments, NMC Health, North Midland Construction, Ocean Wilsons Holdings Ltd., Quixant, Saga, Sainsbury (J), SDL Share plc, SQS Software Quality Systems AG, Trinity Mirror, Weiss Korea Opportunity Fund Ltd
Final Dividend Payment Date
888 Holdings, Dairy Farm International Holdings Ltd. (Singapore), Hongkong Land Holding Ltd. (Sing.Reg), Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Strategic Holdings Ltd. (Singapore), Mandarin Oriental International (Singapore), Property Franchise Group
Interim Ex-Dividend Date
Aberdeen Asset Management, Aberforth Geared Income Trust, Blancco Technology Group, Drum Income Plus Reit, European Assets Trust, F&C Commercial Property Trust Ltd., Focusrite, ICG-Longbow Senior Secured UK Property Debt Investments Ltd, Jupiter Dividend & Growth Trust, Jupiter Dividend & Growth Trust Common, Kennedy Wilson Europe Real Estate, Lok'n Store Group, Sage Group
Interim Dividend Payment Date
NewRiver REIT, Photo-Me International, SCS Group
Quarterly Ex-Dividend Date
BP, Ediston Property Investment Company, Honeycomb Investment Trust, Picton Property Income Ltd
Trading Announcements
Coca-Cola HBC AG (CDI), Hansard Global, Mondi
Key Economic News
German trade surplus widened in March
Germany has registered the seasonally adjusted trade surplus of €25.40 billion in March, compared to a revised trade surplus of €20.00 billion in the previous month. Market expectation was for the nation to register a trade surplus of €21.50 billion.
German current account surplus rose in March
The non-seasonally adjusted current account surplus in Germany rose to €30.20 billion in March, compared to a revised current account surplus of €20.70 billion in the previous month. Markets were anticipating the nation's current account surplus to rise to €26.50 billion.
German industrial production declined less than expected in March
In March, on a monthly basis, the seasonally adjusted industrial production dropped 0.40% in Germany, compared to a revised advance of 1.80% in the prior month. Market anticipation was for industrial production to ease 0.70%.
German industrial production rose less than expected in March
In March, on a YoY basis, the non-seasonally & working day adjusted industrial production in Germany recorded a rise of 1.90%, lower than market expectations for a rise of 2.50%. In the prior month, industrial production had risen by a revised 2.00%.
German exports rose more than expected in March
On a monthly basis, in March, the seasonally adjusted exports recorded a rise of 0.40% in Germany, compared to a revised rise of 0.90% in the previous month. Market expectation was for exports to climb 0.20%.
German imports advanced more than expected in March
On a MoM basis, the seasonally adjusted imports in Germany climbed 2.40% in March, compared to a drop of 1.60% in the prior month. Market anticipation was for imports to climb 1.60%.
French business sentiment index unexpectedly rose in April
The business sentiment index recorded an unexpected rise to a level of 104.00 in France, in April, compared to market expectations of a steady reading. The business sentiment index had recorded a level of 103.00 in the prior month.
French budget deficit expanded in March
Budget deficit in France rose to €29.60 billion in March. France had posted a budget deficit of €21.50 billion in the previous month.
Italian retail sales remained flat in March
In Italy, the seasonally adjusted retail sales remained unchanged on a MoM basis in March, lower than market expectations for an advance of 0.20%. Retail sales had dropped by a revised 0.20% in the previous month.
Italian retail sales surprisingly fell in March
The non-seasonally adjusted retail sales in Italy registered an unexpected drop of 0.40% on a YoY basis in March, less than market expectations for an advance of 0.70%. In the prior month, retail sales had registered a revised drop of 0.70%.
Swiss unemployment rate fell in April
The non-seasonally adjusted unemployment rate eased to 3.30% in Switzerland, in April, meeting market expectations. In the prior month, unemployment rate had recorded a reading of 3.40%.
Swiss unemployment rate remained steady in April
The seasonally adjusted unemployment rate remained unchanged at a level of 3.30% in April, in Switzerland. Market anticipation was for unemployment rate to drop to 3.20%.
US economic optimism index dropped in May
In May, the economic optimism index in the US registered a drop to 51.30. The economic optimism index had registered a level of 51.70 in the previous month.
US small business optimism index dropped in April
The small business optimism index dropped to 104.50 in April, in the US, compared to a level of 104.70 in the prior month. Market expectation was for the small business optimism index to drop to a level of 104.00.
US wholesale inventories surprisingly advanced in March
On a monthly basis, the seasonally adjusted final wholesale inventories unexpectedly climbed 0.20% in the US, in March, more than market expectations for a fall of 0.10%. The preliminary figures had recorded a drop of 0.10%. In the prior month, the wholesale inventories had registered a rise of 0.40%.
US Redbook index rose in the last week
On a YoY basis, the Redbook index rose 1.30% in the US, in the week ended 05 May 2017. In the prior week, the Redbook index had risen 2.30%.
US JOLTs job openings rose in March
In March, JOLTs job openings climbed to 5743.00 K in the US, compared to a revised reading of 5682.00 K in the prior month. Market expectation was for JOLTs job openings to climb to 5725.00 K.
US Redbook index dropped in the last week
In the week ended 05 May 2017, on a MoM basis, the seasonally adjusted Redbook index eased 1.60% in the US. In the previous week, the Redbook index had risen 1.30%.
Canadian building permits unexpectedly declined in March
On a monthly basis, in March, building permits unexpectedly eased 5.80% in Canada, compared to a revised fall of 2.80% in the prior month. Market anticipation was for building permits to climb 2.80%.
BoJ April meeting summary: Overseas risks warrant current policy
A summary of opinions from the Bank of Japan’s (BoJ) April meeting minutes showed that board members agreed on maintaining the central bank’s current accommodative policy due to downside risks from overseas. Further, they decided that as Japan’s exports and production were showing positive signs, it was appropriate to raise the nation’s economic assessment.
Japanese foreign exchange reserves climbed in April
Foreign exchange reserves advanced to $1242.30 billion in Japan, in April. In the previous month, foreign exchange reserves had registered a reading of $1230.33 billion.
Chinese PPI rose less than expected in April
On a YoY basis, the producer price index (PPI) rose 6.40% in April, in China, lower than market expectations for an advance of 6.70%. The PPI had advanced 7.60% in the prior month.
Chinese CPI rose more than expected in April
The consumer price index (CPI) registered a rise of 1.20% on a YoY basis in China in April, more than market expectations for an advance of 1.10%. In the previous month, the CPI had registered a rise of 0.90%.