UK Market Snapshot
UK markets finished mixed yesterday, with the FTSE 100 index closing lower for the fourth consecutive session as investors cautiously await the outcome of the country’s parliamentary elections after surprising results from an exit poll suggested that Theresa May’s Conservative Party would lose its parliamentary majority. Johnson Matthey, WPP and Vodafone Group declined 1.1%, 2.7% and 4.8%, respectively, as their stock went ex-dividend. Precious metal miners, Fresnillo and Randgold Resources dropped 0.9% and 1.9%, respectively. On the flipside, Petrofac advanced 4.1%, after the company inked a ten-year deal with Petroleum Development Oman. Miners, Anglo American, Rio Tinto and Glencore climbed 1.2%, 1.8% and 2.1%, respectively. Rentokil Initial added 0.9%, after the European Commission unconditionally approved its joint venture with Haniel & Cie Holding. The FTSE 100 declined 0.4%, to close at 7,450.0, while the FTSE 250 gained 0.2%, to settle at 19,743.4.
US Market Snapshot
US markets closed in positive territory yesterday, with the NASDAQ index ending at a record high-level. Meanwhile, former FBI Director, James Comey, accused that the US President, Donald Trump fired him in an effort to undermine the FBI’s investigation into Russian meddling in November’s presidential election. Alibaba Group Holding rallied 13.3%, after the company forecasted the largest revenue growth since 2014 IPO for 2018. Nordstrom soared 10.3%, after the company announced that the Nordstrom family was exploring the options of taking the company private due to its industry-wide sales slowdown struggles. Yahoo! surged 10.2%, after news indicated that Verizon Communications, down 0.7%, might cut up to thousand jobs from the integrated entity of the company with AOL. The S&P 500 marginally gained to settle at 2,433.8. The DJIA marginally rose to settle at 21,182.5, while the NASDAQ advanced 0.4%, to close at 6,321.8.
Europe Market Snapshot
Other European markets ended mostly lower yesterday after the European Central Bank (ECB) left its key interest rate unchanged while upgrading its outlook for the region’s economic growth and lowering its inflation forecasts. Financial firms, Credit Suisse Group and UBS Group shed 0.3% and 0.8%, respectively. Insurers, Swiss Life Holding and Swiss Re slid 0.3% and 0.7%, respectively. Novartis and Roche Holding slipped 0.1% and 0.4%, respectively. On the brighter side, Utility firms, RWE and E.ON climbed 2.0% and 3.7%, respectively. Rocket Internet advanced 2.7%, after Kinnevik, up 0.4%, sold its remaining 6.6% stake in the former for more than €200.0 million. The FTSEurofirst 300 index marginally declined to close at 1,528.7. Among other European markets, the German DAX Xetra 30 rose 0.3%, to close at 12,713.6, while the French CAC-40 marginally shed to settle at 5,264.2.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning, tracking overnight gains in the US equities. In Japan, SoftBank Group has jumped 6.9%, after its subsidiary agreed to acquire robotics firms, Boston Dynamics and Schaft from Alphabet. However, Fujifilm Holdings has dropped 3.7%, after a report indicated that its accounting irregularities had spread to its Australian unit. In Hong Kong, brokers, CITIC Securities and Haitong Securities have declined 1.2% and 1.5%, respectively. On the contrary, AAC Technologies has advanced after the company announced that China Citic Bank Corporation’s Nanjing branch would provide “financial package services” to the company under a strategic cooperation agreement. In South Korea, steelmakers, POSCO and Hyundai Steel have climbed 1.9% and 2.2%, respectively. The Nikkei 225 index is trading 0.9% higher at 20,089.9. The Hang Seng index is trading 0.1% down at 26,048.4, while the Kospi index is trading 0.8% up at 2,381.5.
Key Corporate Announcements Today
AGMs
Baker Steel Resources Trust Ltd., Deltex Medical Group, M. P. Evans Group, PJSC MNC Norilsk Nickel ADR, Public Joint Stock Company Gazprom Neft ADR, Public Joint Stock Company Severstal GDR (Reg S), Richoux Group, Telefonica SA, Telefonica SA, Tomco Energy, Vertu Capital Limited (DI)
EGMs
Exova
Final Dividend Payment Date
Barr (A.G.), Card Factory, Carillion, Computacenter, Derwent London, Exova Group, G4S, Ibstock, Irish Continental Group Units, Keller Group, Ocean Wilsons Holdings Ltd., Robert Walters, Science Group, SDL, SThree, Trinity Mirror
Interim Dividend Payment Date
Bluefield Solar Income Fund Limited, Focusrite, Lok'n Store Group, McCarthy & Stone, Polar Capital Global, Healthcare Growth & Income Trust, Seneca Global Income & Growth Trust
Special Dividend Payment Date
Derwent London
Key Corporate Announcements for Monday
AGMs
Ascent Resources, CEPS, Foresight Solar Fund Limited, North American Income Trust (The), Woodford Patient Capital Trust
EGMs
Mitie Group, Public Power GDR SA (Reg S)
Final Ex-Dividend Date
Compagnie de St-Gobain SA
Interim Dividend Payment Date
Barloworld Ltd., Invesco Perpetual UK Small Companies Inv Trust
Key Economic News
ECB kept monetary policy on hold and ruled out further rate cuts
The European Central Bank (ECB) left the benchmark interest rate unchanged and dropped any reference to future rate cuts. The ECB President, Mario Draghi indicated that interest rates are likely to remain at present levels for an extended period of time, but added that the central bank would be ready to extend its quantitative easing program if needed. Further, the ECB expects inflation this year at just 1.50%, down from its previous forecast of 1.70%.
Euro-zone GDP rose more than expected in 1Q 2017
The seasonally adjusted final gross domestic product (GDP) registered a rise of 1.90% on a YoY basis in 1Q 2017, in the Euro-zone, compared to a revised rise of 1.80% in the prior quarter. The preliminary figures had recorded an advance of 1.70%. Markets were anticipating GDP to advance 1.70%.
Euro-zone GDP advanced more than expected in 1Q 2017
In 1Q 2017, the seasonally adjusted GDP in the Euro-zone advanced 0.60% on a QoQ basis, compared to a revised advance of 0.50% in the previous quarter. Markets were anticipating GDP to climb 0.50%. The preliminary figures had indicated a rise of 0.50%.
Euro-zone government expenditure advanced as expected in 1Q 2017
On a quarterly basis, government expenditure recorded a rise of 0.40% in the Euro-zone, in 1Q 2017, in line with market expectations. In the prior quarter, government expenditure had recorded a revised rise of 0.30%.
Euro-zone gross fixed capital formation rose more than expected in 1Q 2017
On a QoQ basis in 1Q 2017, the gross fixed capital formation registered a rise of 1.30% in the Euro-zone, compared to a revised advance of 3.40% in the prior quarter. Market expectation was for the gross fixed capital formation to rise 0.80%.
Euro-zone household consumption expenditure rose less than expected in 1Q 2017
In the Euro-zone, household consumption expenditure advanced 0.30% on a QoQ basis in 1Q 2017, compared to a rise of 0.40% in the prior quarter. Market expectation was for household consumption expenditure to climb 0.40%.
German industrial production advanced more than expected in April
In April, the seasonally adjusted industrial production advanced 0.80% on a MoM basis in Germany, compared to a revised drop of 0.10% in the prior month. Markets were expecting industrial production to rise 0.50%.
German industrial production advanced more than expected in April
On an annual basis, the non-seasonally & working day adjusted industrial production registered a rise of 2.90% in April, in Germany, more than market expectations for a rise of 2.10%. Industrial production had advanced by a revised 2.20% in the prior month.
French trade deficit rose in April
In April, trade deficit in France expanded to €5.54 billion, following a revised trade deficit of €4.78 billion in the previous month. Markets were expecting the country's trade deficit to widen to €5.95 billion.
French current account deficit widened in April
Current account deficit in France widened to €3.10 billion in April. France had reported a revised current account deficit of €2.10 billion in the prior month.
Spanish housing price index rose in 1Q 2017
The housing price index climbed 2.30% on a QoQ basis in Spain, in 1Q 2017. In the prior quarter, the housing price index had recorded a rise of 0.40%.
Swiss unemployment rate remained flat in May
In May, the seasonally adjusted unemployment rate remained flat at a level of 3.20% in Switzerland, lower than market expectations of an advance to a level of 3.30%.
Swiss unemployment rate declined in May
The non-seasonally adjusted unemployment rate registered a drop to 3.10% in May, in Switzerland, meeting market expectations. In the previous month, unemployment rate had recorded a level of 3.30%.
Swiss EU HICP advanced in May
The EU harmonised consumer price index (HICP) in Switzerland registered a rise of 0.40% on an annual basis, in May. The EU HICP had risen 0.70% in the prior month.
Swiss CPI rose more than expected in May
On a YoY basis, the consumer price index (CPI) in Switzerland advanced 0.50% in May, higher than market expectations for an advance of 0.30%. In the previous month, the CPI had risen 0.40%.
Swiss EU HICP dropped in May
The EU HICP in Switzerland registered a drop of 0.20% on a MoM basis, in May. In the prior month, the EU HICP had risen 0.50%.
Swiss CPI remained flat in May
In May, on a MoM basis, the CPI remained steady in Switzerland, meeting market expectations. The CPI had registered a rise of 0.20% in the prior month.
US initial jobless claims eased in the last week
In the week ended 03 June 2017, the seasonally adjusted initial jobless claims in the US dropped to 245.00 K, compared to a revised level of 255.00 K in the previous week. Market anticipation was for initial jobless claims to ease to 240.00 K.
US continuing jobless claims surprisingly fell in the last week
The seasonally adjusted continuing jobless claims recorded an unexpected drop to a level of 1917.00 K in the week ended 27 May 2017, in the US, compared to market expectations of an advance to 1920.00 K. In the previous week, continuing jobless claims had registered a revised level of 1919.00 K.
US household wealth climbed in 1Q 2017
In the US, household wealth registered a rise of $2347.00 billion, in 1Q 2017. In the prior quarter, household wealth had risen by a revised $1931.00 billion.
Canadian housing starts slid in May
The seasonally adjusted housing starts in Canada fell to a level of 194.70 K in May, lower than market expectations of a drop to 202.00 K. Housing starts had registered a revised reading of 213.50 K in the prior month.
Canadian new housing price index rose more than expected in April
In April, the new housing price index registered a rise of 3.90% on an annual basis in Canada, more than market expectations for an advance of 3.30%. The new housing price index had climbed 3.30% in the prior month.
Canadian new housing price index rose more than expected in April
In April, the new housing price index rose 0.80% in Canada on a MoM basis, higher than market expectations for a rise of 0.20%. The new housing price index had risen 0.20% in the prior month.
Japanese money supply M2+CD advanced less than expected in May
In May, money supply M2+CD climbed 3.90% in Japan on an annual basis, compared to a revised advance of 4.00% in the prior month. Markets were expecting money supply M2+CD to advance 4.30%.
Japanese corporate bankruptcies advanced in May
On an annual basis, corporate bankruptcies climbed 19.52% in May, in Japan. In the previous month, corporate bankruptcies had dropped 2.15%.
Japanese M3 money supply rose less than expected in May
M3 money supply climbed 3.40% in Japan on an annual basis in May, less than market expectations for an advance of 3.60%. In the previous month, M3 money supply had registered a revised similar rise.
Japanese Eco Watchers Survey for current situation advanced in May
Eco Watchers Survey for the current situation registered a rise to 48.60 in May, in Japan, compared to a reading of 48.10 in the prior month. Markets were anticipating Eco Watchers Survey for the current situation to advance to 48.60.
Japanese Eco Watchers Survey for future outlook unexpectedly rose in May
In May, Eco Watchers Survey for the future outlook climbed unexpectedly to a level of 49.60 in Japan, compared to market expectations of a fall to 48.50. Eco Watchers Survey for the future outlook had recorded a level of 48.80 in the prior month.
Chinese PPI advanced less than expected in May
In May, the producer price index (PPI) advanced 5.50% on an annual basis in China, less than market expectations for a rise of 5.60%. In the previous month, the PPI had risen 6.40%.
Chinese CPI advanced as expected in May
On a YoY basis, the CPI recorded a rise of 1.50% in May, in China, compared to a rise of 1.20% in the previous month. Markets were anticipating the CPI to climb 1.50%.