UK Market Snapshot
UK markets finished in negative territory yesterday, with investors exercising caution ahead of the UK general election. AO World plunged 10.7%, after the retailer warned that Brexit concerns, a weak pound and a slowdown in the UK housing market would sharply hamper its growth in the UK in the first quarter. Convatec Group dropped 4.0%, after Nordic Capital and Avista Capital Holdings raised £805.0 million by selling around 250.0 million ordinary shares in the company. Burberry Group declined 3.7%, after a leading broker downgraded its rating on the stock to ‘Reduce’ from ‘Hold’. Housebuilders, Barratt Developments, Persimmon and Taylor Wimpey slipped 1.5%, 2.2% and 2.5%, respectively. On the brighter side, precious metal miners, Randgold Resources and Fresnillo advanced 2.7% and 3.2%, respectively, as gold prices gained amid growing geopolitical tensions. The FTSE 100 marginally declined to close at 7,525.0, while the FTSE 250 fell 1.1%, to settle at 19,654.8.
US Market Snapshot
US markets closed lower yesterday, dragged down by a slump in consumer-discretionary and industrial sector stocks. Macy’s plunged 8.2%, after the retailer warned that its gross margin for the second quarter would be weaker than the outlook it offered in February. Michaels plummeted 8.4%, after the company’s earnings missed market expectations for the first quarter and it provided a dismal full year outlook. Fellow retailers, Dollar General, Foot Locker and Kohl’s fell 3.8%, 4.4% and 5.8%, respectively. HD Supply Holdings sank 17.5%, after the company announced that it would sell Waterworks business unit to Clayton, Dubilier & Rice for a cash consideration of $2.5 billion. Wal-Mart Stores slipped 1.7%, after Amazon.com, down 0.8%, declared that it would offer its Prime membership service at a discount to the US customers. The S&P 500 slipped 0.3%, to settle at 2,429.3. The DJIA shed 0.2%, to settle at 21,136.2, while the NASDAQ slid 0.3%, to close at 6,275.1.
Europe Market Snapshot
Other European markets ended in the red yesterday, led by losses in healthcare sector stocks. Roche Holding declined 5.5%, after a study disclosed that its clinical trial cancer drug, Perjeta, was only marginally better than an older medicine for the women who took it. Peer, Sanofi shed 1.0%. Societe Generale slipped 1.5%, after the bank announced that it would sell its 23.0% share in ALD Automotive in an initial public offering. On the flipside, Vestas Wind Systems advanced 4.7%, after its joint venture with Mitsubishi Heavy Industries, MHI Vestas, stated that it would launch a new wind turbine. Deutsche Lufthansa added 1.2%, following a broker upgrade on the stock to ‘Buy’ from ‘Hold’. The FTSEurofirst 300 index declined 0.6%, to close at 1,530.5. Among other European markets, the German DAX Xetra 30 slid 1.0%, to close at 12,690.1, while the French CAC-40 shed 0.7%, to settle at 5,269.2.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning, as investors remained cautious ahead of the European Central Bank’s (ECB) policy meeting and UK’s general election, both scheduled for tomorrow. In Japan, exporters, Toyota Motor, Canon and Sony have declined 0.1%, 1.0% and 1.8%, respectively. On the contrary, Japan Display has soared 10.3%, after the company stated that new medium-term business plan would be unveiled by August by its new management team that it would appoint at its annual shareholders meeting to be held on 21 June. In Hong Kong, New World Department Store China has rallied 42.9%, after a privatisation plan for the company for HK$934.5 million was announced by its parent firm, New World Development. In South Korea, LG Electronics and Hyundai Motor have dropped 2.2% and 2.8%, respectively. The Nikkei 225 index is trading 0.3% lower at 19,916.9. The Hang Seng index is trading 0.1% up at 26,022.4, while the Kospi index is trading 0.1% lower at 2,366.1.
Key Corporate Announcements Today
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 Corporate Announcements for Tomorrow
AGMs
AA, Aurora Investment Trust, BlackRock Smaller Companies Trust, Dignity, Invesco Perpetual UK Small Companies Inv Trust, Pagegroup, Panmure Gordon & Co, Porta Communications, Scisys, Sopheon
Final Ex-Dividend Date
Air Partner, Anglo-Eastern Plantations, Applegreen, Arrow Global Group, Billington Holdings, Booker Group, Camellia, Capital Gearing Trust, Christie Group, Good Energy Group, Helios Underwriting, Inspired Energy, John Laing Environmental Assets Group Limited, Johnson Matthey, Judges Scientific, Learning Technologies Group, London Security, M&C Saatchi, Nasstar, Phoenix Spree Deutschland Limited Shs NPV, Restore, Rotala, RTC Group, Scottish Mortgage Inv Trust, SIG, Spectra Systems Corporation, Synthomer, TBC Bank Group, Triple Point VCT 2011, Triple Point Vct 2011 A, Vodafone Group, WPP, Young & Co's Brewery 'A' Shares
Final Dividend Payment Date
Fidessa Group, Legal & General Group, Macfarlane Group, William Hill
Interim Ex-Dividend Date
Aew UK Reit, Alliance Trust, Artemis VCT, Associated British Foods, Blackrock Frontiers Investment Trust, British Empire Trust, Connect Group, Daily Mail and General Trust A (Non.V), F&C Commercial Property Trust Ltd., F&C UK Real Estate Investments Limited, General Accident 'A', Hargreave Hale AIM VCT 1, ITE Group, JPMorgan Global Growth & Income, LondonMetric Property, Perpetual Income & Growth Inv Trust, Princess Private Equity Holding Ltd., Redefine International, Temple Bar Inv Trust, TOC Property Backed Lending Trust, Urban&Civic, Victrex plc, Watkin Jones
Interim Dividend Payment Date
Fidelity Special Values, Jarvis Securities
Special Dividend Payment Date
Fidessa Group
Special Ex-Dividend Payment Date
Artemis VCT, Booker Group, Electra Private Equity, Helios Underwriting, Perpetual Income & Growth Inv Trust
Quarterly Payment Date
M Winkworth
Quarterly Ex-Dividend Date
Brunner Inv Trust, Premier Energy & Water Trust, Regional REIT Limited, UIL Limited (DI), Volta Finance Limited
Trading Announcements
Key Economic News
Euro-zone investor confidence index surprisingly advanced in June
Compared to a level of 27.40 in the previous month the investor confidence index recorded an unexpected rise to a level of 28.40 in the Euro-zone, in June. Market anticipation was for the investor confidence index to record a steady reading.
Euro-zone retail sales rose less than expected in April
On a MoM basis, the seasonally adjusted retail sales advanced 0.10% in April, in the Euro-zone, compared to a revised rise of 0.20% in the previous month. Markets were anticipating retail sales to rise 0.20%.
Euro-zone retail sales rose more than expected in April
On a YoY basis, the seasonally adjusted retail sales in the Euro-zone advanced 2.50% in April, more than market expectations for a rise of 2.10%. In the prior month, retail sales had registered a revised similar rise.
US Redbook index rose in the last week
On a monthly basis, the seasonally adjusted Redbook index in the US advanced 0.70% in the week ended 02 June 2017. In the prior week, the Redbook index had dropped 1.10%.
US JOLTs job openings unexpectedly rose in April
In April, JOLTs job openings registered an unexpected rise to a level of 6044.00 K in the US, compared to market expectations of a fall to 5750.00 K. In the prior month, JOLTs job openings had registered a revised reading of 5785.00 K.
US Redbook index rose in the last week
The Redbook index advanced 2.50% in the US on an annual basis, in the week ended 02 June 2017. In the previous week, the Redbook index had advanced 1.80%.
Canadian Ivey PMI dropped in May
The seasonally adjusted Ivey PMI registered a drop to 53.80 in Canada, in May. In the previous month, Ivey PMI had recorded a reading of 62.40.
Japanese foreign exchange reserves rose in May
Foreign exchange reserves climbed to $1251.90 billion in Japan, in May. In the prior month, foreign exchange reserves had registered a level of $1242.30 billion.