UK Market Snapshot
UK markets finished mixed on Friday, with the FTSE 100 index closing higher, buoyed by gains in precious metal mining stocks. Fresnillo and Randgold Resources advanced 3.8% and 4.0%, respectively, tracking a rally in gold prices. Old Mutual climbed 3.3%, after the company announced that its UK wealth management business, Old Mutual Wealth, completed the acquisition of Caerus Capital Group. Metro Bank edged 0.2% up, after the company acquired a package of UK buy-to-let loans from Cerberus for about £596.7 million in order to boost growth. On the losing side, Whitbread dropped 1.7%, following a broker downgrade on the stock to ‘Sell’ from ‘Neutral’. Energy majors, Royal Dutch Shell and BP declined 1.2% and 1.5%, respectively, on lower crude oil prices. The FTSE 100 advanced 0.1%, to close at 7,547.6, while the FTSE 250 marginally fell to settle at 20,002.8.
US Market Snapshot
US markets closed in positive territory on Friday, with major indices closing at their record high levels, boosted by a rally in technology sector stocks. Meanwhile, the US nonfarm payrolls rose less than expected in May. Facebook, Apple and Microsoft advanced 1.4%, 1.5% and 2.4%, respectively. Lululemon Athletica surged 11.6%, after the company posted upbeat earnings for the first quarter and announced that it would close down around 40 of its 55 Ivivva stores following operational losses. Broadcom soared 8.5%, after the company reported higher than expected adjusted profit for the second quarter and offered a robust outlook for the third quarter. Bucking the trend, energy giants, Devon Energy, Range Resources and Newfield Exploration declined 3.3%, 3.9% and 5.0%, respectively. The S&P 500 gained 0.4%, to settle at 2,439.1. The DJIA rose 0.3%, to settle at 21,206.3, while the NASDAQ advanced 0.9%, to close at 6,305.8.
Europe Market Snapshot
Other European markets ended in the green on Friday, with the German DAX Xetra 30 index closing at an all-time high level helped by gains in auto sector stocks. Automakers, Bayerische Motoren Werke and Volkswagen advanced 1.1% and 1.2%, respectively, after data showed that new German car registrations rose more than expected in May. Ipsen climbed 3.7%, after the company announced that it would buyback its shares worth €1.67 billion. Linde gained 1.2%, after the company’s board approved its $75.0 billion planned merger with Praxair. On the flipside, banking stocks, Commerzbank and Deutsche Bank dropped 0.3% and 0.5%, respectively. The FTSEurofirst 300 index gained 0.3%, to close at 1,542.1. Among other European markets, the German DAX Xetra 30 rose 1.2%, to close at 12,822.9, while the French CAC-40 advanced 0.5%, to settle at 5,343.4.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning, after China’s Caixin services PMI data indicated that the nation’s service sector grew at its fastest pace in four months in May. In Japan, Hearts United Group has surged 8.9%, after Rheas Capital Works acquired 5.19% of the company’s shares. Kanamoto has jumped 6.8%, after it upgraded its projected operating profit for the year through October 2017. However, Toyota has dropped 1.7%, after the company announced that it sold its stock in Tesla after its partnership to develop electric cars with the latter ended. In Hong Kong, lenders, HSBC Holdings and Bank of China have declined 0.3% and 1.3%, respectively. In South Korea, Samsung Electronics and POSCO have gained 0.4% and 0.6%, respectively. The Nikkei 225 index is trading 0.1% higher at 20,205.7. The Hang Seng index is trading 0.2% down at 25,878.2, while the Kospi index is trading marginally up at 2,372.3.
Key Corporate Announcements Today
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 Corporate Announcements for Tomorrow
AGMs
Bagir Group Ltd. (DI), Fair Oaks Income Limited 2017 Shs NPV, Fidelity Japanese Values, Forbidden Technologies, Gem Diamonds Ltd. (DI), Genel Energy, London & Associated Properties, Martin Currie Global Portfolio Trust, Mobile Tornado Group, NB Distressed Debt Investment Fund Limited, Realm Therapeutics, Safestay, Shawbrook Group, Somero Enterprises Inc. (DI), The Gym Group, Vietnam Enterprise Investments (DI)
EGMs
Medilink-Global UK Ltd.
Final Dividend Payment Date
Hostelworld Group, Integrated Diagnostics Holdings
Interim Dividend Payment Date
James Halstead
Special Dividend Payment Date
Hostelworld Group
Trading Announcements
Joules Group, easyJet
Key Economic News
World Bank retained global economic growth forecast
The World Bank kept its global growth forecast for 2017 and 2018 unchanged at 2.70% and 2.90%, respectively, amid improving world trade and recovery in the US, Europe and other advanced economies. However, the bank warned that policy uncertainty is likely to remain high in 2017, and there is risk that financial market volatility could increase from current low levels.
UK construction PMI unexpectedly rose in May
The construction PMI climbed unexpectedly to a level of 56.00 in the UK, in May, compared to market expectations of a fall to 52.60. The construction PMI had registered a level of 53.10 in the prior month.
Euro-zone PPI remained unchanged in April
In April, the producer price index (PPI) remained flat in the Euro-zone on a monthly basis, less than market expectations for an advance of 0.20%. In the prior month, the PPI had registered a drop of 0.30%.
Number of people unemployed in Spain declined in May
Number of people unemployed in Spain registered a drop of 111.90 K in May, more than market expectations of a decline of 110.00 K. Number of people unemployed had recorded a loss of 129.30 K in the previous month.
US average hourly earnings of all employees advanced as expected in May
On a monthly basis in May, average hourly earnings of all employees recorded a rise of 0.20% in the US, compared to a revised similar rise in the prior month. Market anticipation was for average hourly earnings of all employees to climb 0.20%.
US New York City current business condition index declined in May
In the US, the New York City current business condition index fell to a level of 46.70 in May. In the previous month, the New York City current business condition index had registered a level of 55.80.
US average hourly earnings of all employees rose less than expected in May
On an annual basis, average hourly earnings of all employees in the US advanced 2.50% in May, lower than market expectations for an advance of 2.60%. In the previous month, average hourly earnings of all employees had registered a similar rise.
Household employment in the US slid in May
Household employment in the US eased by 233.00 K in May. Household employment had recorded an increase of 156.00 K in the prior month.
Private payrolls in the US rose in May
Private payrolls in the US rose by 147.00 K in May, lower than market anticipations of an advance of 175.00 K. Private payrolls had recorded a revised increase of 173.00 K in the previous month.
US average weekly hours of all employees remained unchanged in May
In May, average weekly hours of all employees in the US remained steady at 34.40, in line with market expectations.
US underemployment rate dropped in May
Underemployment rate fell to a level of 8.40% in the US, in May. In the previous month, underemployment rate had registered a reading of 8.60%.
US unemployment rate surprisingly dropped in May
Compared to a level of 4.40% in the previous month unemployment rate dropped unexpectedly to 4.30% in May, in the US. Markets were anticipating unemployment rate to remain unchanged.
Manufacturing payrolls in the US unexpectedly dropped in May
In the US, manufacturing payrolls recorded an unexpected drop of 1.00 K in May, less than market expectations of an advance of 5.00 K. Manufacturing payrolls had recorded a revised increase of 11.00 K in the prior month.
Non-farm payrolls in the US rose in May
In the US recorded an increase of 138.00 K in May, compared to market expectations of an advance of 182.00 K. Non-farm payrolls had recorded a revised gain of 174.00 K in the prior month.
US trade deficit widened in April
Trade deficit in the US expanded to $47.60 billion in April, compared to a revised trade deficit of $45.30 billion in the previous month. Market anticipation was for the nation to post a trade deficit of $46.10 billion.
Canadian labor productivity advanced more than expected in 1Q 2017
On a QoQ basis, in 1Q 2017, labor productivity climbed 1.40% in Canada, higher than market expectations for a rise of 1.20%. Labor productivity had recorded a rise of 0.40% in the previous quarter.
Canadian international merchandise trade deficit declined in April
The international merchandise trade deficit in Canada dropped to C$0.37 billion in April, compared to market expectations of a international merchandise trade deficit of C$0.02 billion. Canada had reported a revised international merchandise trade deficit of C$0.94 billion in the previous month.
Japanese Markit composite PMI rose in May
Markit composite PMI in Japan advanced to 53.40 in May. Markit composite PMI had recorded a reading of 52.60 in the prior month.
Japanese consumer confidence index rose in May
In May, the consumer confidence index in Japan advanced to 43.60, compared to a level of 43.20 in the previous month. Markets were anticipating the consumer confidence index to advance to a level of 43.50.
Chinese Caixin composite PMI advanced in May
Caixin composite PMI registered a rise to 51.50 in China, in May, compared to a reading of 51.20 in the prior month.
Chinese Caixin/Markit services PMI index advanced in May
In May, the Caixin/Markit services PMI index rose to a level of 52.80 in China, compared to a level of 51.50 in the previous month.