UK Market Snapshot
UK markets finished higher yesterday, helped by upbeat manufacturing PMI data for May. Meanwhile, the latest election poll showed that the Conservative Party’s lead over Labour had narrowed to just three points. Inmarsat jumped 5.6%, after a report indicated that the company would consider a possible tie-up with Japan’s SoftBank Group. Micro Focus International climbed 2.8%, after Hewlett Packard Enterprise reported better than expected margin improvements in its software business for the second quarter, which the former is set to acquire in a $8.8 billion deal. Multinational firms, AstraZeneca and Rolls-Royce Holdings added 1.8% and 2.1%, respectively. On the flipside, ITV declined 2.1%, following a broker downgrade on the stock to ‘Hold’ from ‘Buy’. Lloyds Banking Group dropped 0.6%, after the lender announced that it had completed the acquisition of MBNA credit cards. The FTSE 100 advanced 0.3%, to close at 7,543.8, while the FTSE 250 rose 0.2%, to settle at 20,010.6.
US Market Snapshot
US markets ended in the green yesterday, with the major indices closing at their record high levels, as investor sentiment was boosted by the release of better than expected private-sector hiring and US manufacturing data for May. Palo Alto Networks rallied 17.2%, after the company’s earnings and revenue for the third quarter surpassed market estimates and it offered a robust outlook for the fourth quarter. Automakers, General Motors and Ford Motor rose 1.5% and 2.6%, respectively. Deere edged 1.8% up, after the company announced that it would acquire Germany’s privately held road construction company, Wirtgen Group, for about $5.2 billion, including debt. On the losing side, Express sank 19.2%, after the company posted lower than expected profit and revenue for the first quarter. The S&P 500 gained 0.8%, to settle at 2,430.1. The DJIA rose 0.6%, to settle at 21,144.2, while the NASDAQ advanced 0.8%, to close at 6,246.8.
Europe Market Snapshot
Other European markets closed in positive territory yesterday, boosted by a rally in energy and auto sector stocks. Oil giants, Statoil and Eni added 0.1% and 1.2%, respectively. Peugeot and Renault advanced 1.7% and 2.1%, respectively after data showed a rise in car registrations in France in May. German automakers, Volkswagen and Bayerische Motoren Werke climbed 0.9% and 1.7%, respectively. Akzo Nobel edged 0.7% up, after US firm, PPG Industries, dropped its takeover bid for the former after the company rejected its repeated informal offers. Bucking the trend, Banco Popular Espanol plunged 17.9%, after a leading European bank watchdog warned EU officials that the bank might need to be dissolved if it failed to find a buyer. The FTSEurofirst 300 index gained 0.4%, to close at 1,538.1. Among other European markets, the German DAX Xetra 30 rose 0.4%, to close at 12,664.9, while the French CAC-40 advanced 0.7%, to settle at 5,318.7.
Asia Market Snapshot
Markets in Asia are trading higher this morning, tracking overnight gains in the US equities. In Japan, Kyocera and Subaru have advanced 3.7% and 3.9%, respectively. Auto exporters, Toyota Motor, Nissan Motor and Honda Motor have gained 1.2%, 1.7% and 2.1%, respectively, as the Japanese Yen weakened against its US counterpart. In Hong Kong, gaming stocks, Galaxy Entertainment Group and Wynn Macau have added 0.6% and 0.8%, respectively, after a report showed that revenues of Macau casinos significantly rose in May. In South Korea, technology giants, Samsung Electronics and LG Electronics have climbed 2.5% and 5.4%, respectively. On the flipside, carmakers, Kia Motors and Hyundai Motor have declined 1.3% and 1.5%, respectively. The Nikkei 225 index is trading 1.4% higher at 20,139.3. The Hang Seng index is trading 0.3% up at 25,880.1, while the Kospi index is trading 0.9% higher at 2,364.7.
Key Corporate Announcements Today
AGMs
Amec Foster Wheeler, GoldStone Resources Ltd, Honeycomb Investment Trust, Mail.ru Group Ltd GDR (Reg S), Manx Financial Group, Silence Therapeutics, Sphere Medical Holding
EGMs
Final Dividend Payment Date
Admiral Group, Bodycote, Clarkson, H&T Group, Highcroft Investment, Informa, Intertek Group, Luceco, NMC Health, North Midland Construction, Playtech, Polypipe Group, Porvair, Rightmove, TT Electronics, Weiss Korea Opportunity Fund Ltd
Interim Dividend Payment Date
Games Workshop Group, GCP Infrastructure Investments Ltd, ICG-Longbow Senior Secured UK Property Debt Investments Ltd, Jupiter Dividend & Growth Trust, Jupiter Dividend & Growth Trust Common, Premier Asset Management Group, Sage Group
Special Dividend Payment Date
Admiral Group, ICG-Longbow Senior Secured UK Property Debt Investments Ltd, National Grid
Quarterly Payment Date
Toro Limited
Key Corporate Announcements for Monday
AGMs
Africa Opportunity Fund Limited, Arix Bioscience, Cambian Group, Frontera Resources Corporation (DI), Redstoneconnect, TBC Bank Group, Chapel Down Group, Billington Holdings
EGMs
Amedeo Air Four Plus Limited
Final Dividend Payment Date
Epwin Group, Weir Group
Interim Dividend Payment Date
GCP Student Living, Smart (J) & Co.
Quarterly Ex-Dividend Date
Key Economic News
UK house prices advanced less than expected in May
The non-seasonally adjusted house prices in the UK climbed 2.10% in May on a YoY basis, compared to an advance of 2.60% in the prior month. Markets were anticipating house prices to advance 2.40%.
UK manufacturing PMI dropped in May
In the UK, the manufacturing PMI registered a drop to 56.70 in May, compared to a reading of 57.30 in the previous month. Markets were expecting the manufacturing PMI to fall to 56.50.
UK house prices unexpectedly slid in May
On a monthly basis, the seasonally adjusted house prices registered an unexpected drop of 0.20% in the UK, in May, less than market expectations for an advance of 0.20%. In the previous month, house prices had dropped 0.40%.
Euro-zone manufacturing PMI climbed in May
The final manufacturing PMI rose to a level of 57.00 in the Euro-zone, in May, at par with market expectations. In the previous month, the manufacturing PMI had registered a level of 56.70. The preliminary figures had also recorded a rise to 57.00.
German manufacturing PMI advanced in May
In May, the final manufacturing PMI rose to a level of 59.50 in Germany, compared to a level of 58.20 in the previous month. Market anticipation was for manufacturing PMI to rise to a level of 59.40. The preliminary figures had recorded an advance to 59.40.
French manufacturing PMI dropped in May
The final manufacturing PMI recorded a drop to 53.80 in May, in France, lower than market expectations of a drop to a level of 54.00. The preliminary figures had indicated a fall to 54.00. In the prior month, manufacturing PMI had registered a level of 55.10.
Italian manufacturing PMI dropped in May
The manufacturing PMI dropped to 55.10 in May, in Italy, compared to market expectations of a fall to a level of 56.00. In the previous month, the manufacturing PMI had registered a reading of 56.20.
Italian GDP rose more than expected in 1Q 2017
In 1Q 2017, the final gross domestic product (GDP) in Italy advanced 0.40% on a QoQ basis, compared to a rise of 0.20% in the prior quarter. Markets were anticipating the GDP to advance 0.20%. The preliminary figures had indicated a rise of 0.20%.
Spanish manufacturing PMI advanced in May
The manufacturing PMI registered a rise to 55.40 in Spain, in May, higher than market expectations of an advance to a level of 54.70. The manufacturing PMI had recorded a level of 54.50 in the previous month.
Swiss GDP advanced less than expected in 1Q 2017
On a QoQ basis, in Switzerland, the seasonally adjusted GDP recorded a rise of 0.30% in 1Q 2017, lower than market expectations for a rise of 0.50%. In the prior quarter, GDP had advanced by a revised 0.20%.
Swiss GDP rose less than expected in 1Q 2017
In 1Q 2017, GDP registered a rise of 1.10% in Switzerland, on a YoY basis, lower than market expectations for a rise of 1.30%. GDP had advanced by a revised 0.70% in the previous quarter.
Swiss real retail sales declined in April
In Switzerland, real retail sales eased 1.20% in April on a YoY basis. In the previous month, real retail sales had recorded a rise of 2.10%.
Swiss SVME manufacturing PMI unexpectedly dropped in May
The SVME manufacturing PMI registered an unexpected drop to a level of 55.60 in May, in Switzerland, compared to a level of 57.40 in the previous month. Markets were anticipating the SVME manufacturing PMI to rise to 57.80.
US Markit manufacturing PMI fell in May
The final Markit manufacturing PMI eased to 52.70 in May, in the US, compared to a reading of 52.80 in the previous month. The preliminary figures had indicated a fall to 52.50. Markets were anticipating the Markit manufacturing PMI to drop to 52.50.
US ISM backlog orders dropped in May
In May, ISM backlog orders in the US recorded a drop to 55.00, compared to a level of 57.00 in the previous month.
US ISM inventories advanced in May
In May, ISM inventories advanced to 51.50 in the US. ISM inventories had recorded a reading of 51.00 in the previous month.
Private sector employment in the US advanced in May
In the US, the private sector employment registered a rise of 253.00 K in May, compared to market expectations of an advance of 180.00 K. The private sector employment had recorded a revised increase of 174.00 K in the prior month.
US initial jobless claims advanced in the last week
In the US, the seasonally adjusted initial jobless claims registered a rise to 248.00 K in the week ended 27 May 2017, compared to market expectations of an advance to 238.00 K. Initial jobless claims had recorded a revised reading of 235.00 K in the previous week.
US continuing jobless claims dropped in the last week
The seasonally adjusted continuing jobless claims in the US registered a drop to 1915.00 K in the week ended 20 May 2017, compared to a revised reading of 1924.00 K in the prior week. Market expectation was for continuing jobless claims to drop to 1920.00 K.
US number of planned layoffs by US companies rose in May
In May, the number of planned layoffs by US companies in the US advanced to 51.69 K. In the prior month, the number of planned layoffs by US companies had registered a reading of 36.60 K.
US number of planned layoffs by US companies advanced in May
In May, on an annual basis, the number of planned layoffs by US companies climbed 71.40% in the US. In the previous month, the number of planned layoffs by US companies had fallen 42.90%.
US ISM new orders advanced in May
In May, ISM new orders advanced to 59.50 in the US. ISM new orders had registered a reading of 57.50 in the previous month.
US ISM prices paid index slid in May
The ISM prices paid index in the US recorded a drop to 60.50 in May, lower than market expectations of a drop to 67.00. In the prior month, the ISM prices paid index had registered a reading of 68.50.
US construction spending unexpectedly dropped in April
On a MoM basis, in the US, construction spending registered an unexpected drop of 1.40% in April, less than market expectations for an advance of 0.50%. In the previous month, construction spending had registered a drop of 0.20%.
US ISM manufacturing activity index unexpectedly advanced in May
The ISM manufacturing activity index in the US recorded an unexpected rise to 54.90 in May, compared to market expectations of an unchanged reading. In the prior month, the ISM manufacturing activity index had recorded a level of 54.80.
US ISM production eased in May
ISM production dropped to 57.10 in the US, in May. ISM production had recorded a reading of 58.60 in the previous month.
Japanese vehicle sales rose in May
Vehicle sales in Japan advanced 6.10% in May on an annual basis. In the prior month, vehicle sales had recorded a rise of 5.40%.
Japanese monetary base advanced in May
On a YoY basis, the monetary base in Japan climbed 19.40% in May. In the prior month, the monetary base had risen 19.80%.