UK Market Snapshot
UK markets finished in the red yesterday, weighed down by losses in tourism related stocks after a terror attack in the nation over the weekend dented investors’ sentiment. Additionally, the Pound strengthened against its peers after the latest election poll indicated that the Conservative Party had a double-digit lead over the Labour Party. Merlin Entertainments, International Consolidated Airlines Group and easyJet declined 2.4%, 2.6% and 3.2%, respectively. BBA Aviation dropped 2.0%, after the company’s CEO, Simon Pryce, stepped down from his role earlier than expected. Ocado Group slid 1.2%. The company announced that it will start running the online operations of a regional European retailer. Polymetal International slipped 0.9%, after the company announced that it extended its existing credit facility of $400.0 million with Sberbank for seven years. The FTSE 100 declined 0.3%, to close at 7,525.8, while the FTSE 250 fell 0.7%, to settle at 19,868.7.
US Market Snapshot
US markets closed lower yesterday, led by a slump in utility, material and industrial sector stocks. Cogint sank 21.6%, after a short seller accused that the company’s insiders including its Chairman are facing multiple investigations by the Securities and Exchange Commission and the Department of Justice for securities fraud. Apple slid 1.0%, following a broker downgrade on the stock to ‘Sector weight’ from ‘Overweight’ and stated that the company priced in all of the upside from its iPhone 8 but ignored the risks. On the brighter side, Gigamon surged 9.0%, after a report indicated that company is considering a possible sale while preparing to hold talks with potential suitors. Technology firms, Amazon.com and Alphabet added 0.5% and 0.8%, respectively. The S&P 500 slipped 0.1%, to settle at 2,436.1. The DJIA shed 0.1%, to settle at 21,184.0, while the NASDAQ slid 0.2%, to close at 6,295.7.
Europe Market Snapshot
Other European markets ended in negative territory yesterday, dragged down by losses in banking and energy sector stocks. Banco Popular Espanol sank 18.2%. Peers, Credit Agricole, Commerzbank and Banco BPM lost 0.5%, 0.6% and 2.7%, respectively. Statoil, Eni and TOTAL slipped 0.5%, 0.6% and 2.1%, respectively. Mediaset Espana Comunicacion and Mediaset declined 3.1% and 3.5%, amid rising concerns that Vivendi, down 0.1%, could restrict its stake at 10.0% to fulfil demands of AgCom. Bucking the trend, Sponda rallied 20.8%, after the company received a €1.76 billion takeover bid from Blackstone Group. The FTSEurofirst 300 index declined 0.1%, to close at 1,540.0. Among other European markets, the French CAC-40 shed 0.7%, to settle at 5,307.9. Yesterday, the markets in Germany were closed on account of observance of Whit Monday. The German DAX Xetra 30 rose 1.2%, to close at 12,822.9 on 02 June 2017.
Asia Market Snapshot
Markets in Asia are trading mixed this morning. In Japan, exporters, Sony, Toyota Motor and Nissan Motor have slid 0.3%, 0.5% and 0.8%, respectively, amid strength in Japanese Yen. However, Oomitsu has rallied 25.2%, after the company stated it would start a two-to-one stock split on 01 July for its registered shareholders as on 30 June. Toshiba has advanced 2.9%, after news indicated that it might give the exclusive rights to negotiate to acquire its prized chip unit to Broadcom. In Hong Kong, Sunac China Holdings has climbed 4.5%, after the company inked a deal to acquire the entire equity and debt interest in Dalian Runde Qiancheng. In South Korea, markets are closed today on account of Memorial Day. The Nikkei 225 index is trading 0.7% lower at 20,026.5. The Hang Seng index is trading 0.3% up at 25,933.3. Yesterday, the Kospi index fell 0.1% to close at 2,368.6.
Key Corporate Announcements Today
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
Key Corporate Announcements for Tomorrow
AGMs
Advanced Medical Solutions Group, Albion Technology & General VCT, Audioboom Group, Bisichi Mining, Centralnic Group, Comptoir Group, daVictus, Dillistone Group, Hurricane Energy, Ingenious Entertainment VCT 1 G Shs, Ingenious Entertainment VCT 1 H Shs, Ingenious Entertainment VCT 2 G Shs, Ingenious Entertainment Vct 2 H Shs, International Public Partnerships Ltd., Jackpotjoy, JSC Chelyabinsk Zinc Plant GDR (Reg S), M&C Saatchi, Mears Group, Northbridge Industrial Services, Secure Income Reit, Standard Life Investments Property Income Trust Ltd., WPP
EGMs
Compass Group, Wheelsure Holdings
Final Dividend Payment Date
Central Asia Metals
Interim Ex-Dividend Date
Barloworld Ltd.
Interim Dividend Payment Date
International Public Partnerships Ltd., Pembroke VCT, Pembroke Vct B
Quarterly Ex-Dividend Date
Unilever
Key Economic News
UK official reserves advanced in May
Official reserves advanced $1115.00 million in the UK, in May. Official reserves had registered a rise of $1362.00 million in the prior month.
UK services PMI fell in May
In May, the services PMI dropped to 53.80 in the UK, lower than market expectations of a fall to 55.00. The services PMI had recorded a reading of 55.80 in the prior month.
UK new car registrations dropped in May
New car registrations fell 8.50% in the UK on an annual basis, in May. In the prior month, new car registrations had recorded a drop of 19.80%.
UK retail sales across all sectors dropped more than expected in May
On a YoY basis, in the UK, retail sales across all sectors fell 0.40% in May, higher than market expectations for a drop of 0.20%. In the previous month, retail sales across all sectors had registered a rise of 5.60%.
Euro-zone composite PMI steadied in May
The final composite PMI remained steady at 56.80 in May, in the Euro-zone, meeting market expectations. The preliminary figures had also recorded an unchanged reading.
Euro-zone services PMI dropped in May
In May, the final services PMI dropped to 56.30 in the Euro-zone, compared to market expectations of a fall to a level of 56.20. The preliminary figures had recorded a fall to 56.20. In the previous month, services PMI had registered a level of 56.40.
German services PMI remained flat in May
In May, the final services PMI remained unchanged at a level of 55.40 in Germany, higher than market expectations of a drop to 55.20. The preliminary figures had recorded a fall to 55.20.
French services PMI advanced in May
The final services PMI registered a rise to 57.20 in France, in May, compared to market expectations of an advance to 8.00. The preliminary figures had indicated an advance to 58.00. In the previous month, services PMI had registered a reading of 56.70.
Italian services PMI declined in May
The services PMI in Italy dropped to 55.10 in May, lower than market expectations of a fall to 55.30. The services PMI had registered a level of 56.20 in the prior month.
Spanish services PMI declined in May
In May, the services PMI in Spain dropped to 57.30, compared to a reading of 57.80 in the prior month. Markets were anticipating the services PMI to fall to a level of 57.50.
US non-defense capital goods shipments (ex aircraft) rose in April
The final non-defense capital goods shipments (ex aircraft) rose 0.10% on a MoM basis, in April, in the US. The non-defense capital goods shipments (ex aircraft) had risen by a revised 0.20% in the prior month. The preliminary figures had indicated a fall of 0.10%.
US durable goods orders declined more than expected in April
The final durable goods orders fell 0.80% on a monthly basis in April, in the US, higher than market expectations for a drop of 0.60%. Durable goods orders had recorded a revised rise of 2.30% in the previous month. The preliminary figures had indicated a fall of 0.70%.
US durable goods orders (ex transportation) dropped more than expected in April
In April, the final durable goods orders (ex transportation) slid 0.50% in the US on a monthly basis, more than market expectations for a drop of 0.20%. The preliminary figures had recorded a drop of 0.40%. Durable goods orders (ex transportation) had climbed by a revised 0.80% in the previous month.
US non-farm business productivity steadied in 1Q 2017
On a QoQ basis in 1Q 2017, the final non-farm business productivity remained unchanged in the US, higher than market expectations for a drop of 0.10%. The preliminary figures had recorded a fall of 0.60%. The non-farm business productivity had registered a revised rise of 1.80% in the previous quarter.
US factory orders dropped as expected in April
On a monthly basis, factory orders eased 0.20% in April, in the US, in line with market expectations. In the previous month, factory orders had registered a revised rise of 1.00%.
US Markit composite PMI advanced in May
The final Markit composite PMI in the US registered a rise to 53.60 in May, compared to a level of 53.20 in the prior month. The preliminary figures had indicated a steady reading.
US unit labor costs in non-farm businesses rose less than expected in 1Q 2017
In 1Q 2017, the final unit labor costs in non-farm businesses rose 2.20% on a quarterly basis in the US, less than market expectations for an advance of 2.40%. The preliminary figures had indicated a rise of 3.00%. In the previous quarter, the unit labor costs in non-farm businesses had climbed by a revised 1.30%.
US non-defense capital goods orders (ex aircraft) advanced as expected in April
On a MoM basis, the final non-defense capital goods orders (ex aircraft) advanced 0.10% in April, in the US, at par with market expectations. The preliminary figures had indicated a steady reading. The non-defense capital goods orders (ex aircraft) had registered a revised unchanged reading in the previous month.
US Markit services PMI rose in May
The final Markit services PMI climbed to 53.60 in May, in the US. In the prior month, Markit services PMI had registered a level of 53.10. The preliminary figures had indicated an advance to 54.00.
US non-manufacturing PMI slid in May
In May, the non-manufacturing PMI in the US recorded a drop to 56.90, compared to a reading of 57.50 in the previous month. Market expectation was for the non-manufacturing PMI to drop to a level of 57.10.
Japanese labour cash earnings advanced more than expected in April
Labour cash earnings in Japan advanced 0.50% on an annual basis in April, compared to a revised flat reading in the previous month. Markets were expecting labour cash earnings to advance 0.30%.