UK Market Snapshot
UK markets ended in the green on Friday, after the Pound weakened against its peers as the British elections resulted in a hung parliament and increased uncertainties over Brexit. Multinational firms, Unilever, Burberry Group, Rolls-Royce Holdings and BAE Systems advanced 1.4%, 1.5%, 2.3% and 2.4% respectively. Precious metal miners, Randgold Resources and Fresnillo gained 1.4% and 3.6%, respectively. Energy giants, Royal Dutch Shell and BP climbed 2.3% and 2.5%, respectively, tracking gains in crude prices. On the losing side, housebuilders, Persimmon, Barratt Developments and Taylor Wimpey declined 1.3%, 2.3% and 3.3%, respectively, amid concerns that the pace of purchase of houses in the UK might slow down. Sky slipped 0.7%, after the shocking election results delayed its takeover by Twenty-First Century Fox. The FTSE 100 advanced 1.0%, to close at 7,527.3, while the FTSE 250 rose 0.1%, to settle at 19,770.0.
US Market Snapshot
US markets closed mostly lower on Friday, weighed down by a slump in technology sector shares. Amazon.com, Alphabet, Apple and NVIDIA declined 3.2%, 3.4%, 3.9% and 6.5%, respectively. Endo International sank 16.6%, after the Food and Drug Administration (FDA) asked the drugmaker to withdraw its opioid pain medication, reformulated Opana ER, from the market after it concluded that the drug posed higher risk for abuse than the benefit. On the brighter side, DuPont Fabros Technology surged 9.8%, after the company announced that Digital Realty Trust, down 2.9%, agreed to acquire the former for an enterprise value of around $7.6 billion. Banking stocks, Goldman Sachs Group, JPMorgan Chase and Bank of America advanced 1.7%, 2.4%, and 3.1%, respectively. The S&P 500 slipped 0.1%, to settle at 2,431.8. The DJIA rose 0.4%, to settle at 21,272.0, while the NASDAQ slid 1.8%, to close at 6,207.9.
Europe Market Snapshot
Other European markets finished in positive territory on Friday, after the hung parliament in the UK increased investors’ expectations that the nation will take a softer stance over Brexit. Unione di Banche Italiane advanced 3.5%, on expectations over the possible rescue of the troubled lenders in Italy. Fellow banks, Commerzbank, Deutsche Bank and Credit Suisse Group climbed 0.5%, 1.1% and 1.7%, respectively. L'Oreal edged 0.9% up, after the company agreed to sell its The Body Shop unit to Natura Cosmeticos, down 7.7%, for an enterprise value of €1.0 billion. Energy majors, Eni and TOTAL added 0.1% and 0.4%, respectively, on higher crude oil prices. The FTSEurofirst 300 index gained 0.4%, to close at 1,534.4. Among other European markets, the German DAX Xetra 30 rose 0.8%, to close at 12,815.7, while the French CAC-40 advanced 0.7%, to settle at 5,299.7.
Asia Market Snapshot
Markets in Asia are trading lower this morning. In Japan, technology giants, TDK, Tokyo Electron and Advantest have declined 2.4%, 3.0% and 3.2%, respectively. In contrast, Toshiba has jumped 6.2%, after a report indicated that Western Digital might raise its offer to $18.0 billion or more for the company’s prized memory chip unit. Mizuho Financial Group has advanced 1.1%. In Hong Kong, Legend Holdings, Tencent Holdings and AAC Technologies Holdings have dropped 2.3%, 2.6% and 4.3%, respectively. In South Korea, index majors, SK Hynix, LG Electronics and Naver have gained 1.7%, 3.1% and 5.9%, respectively. The Nikkei 225 index is trading 0.4% lower at 19,941.8. The Hang Seng index is trading 1.0% down at 25,763.1, while the Kospi index is trading 1.0% lower at 2,357.5.
Key Corporate Announcements Today
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 Corporate Announcements for Tomorrow
AGMs
Action Hotels, Boston International Holdings, Capita, Caspian Sunrise, Chariot Oil & Gas Ltd., Hansteen Holdings, ICG Enterprise Trust, IQE, Jupiter Dividend & Growth Trust, Kingfisher, Merlin Entertainments, REA Holdings, Royal Mail, Shield Therapeutics, Soco International, Sunplus Technology Co Ltd.GDR (Reg S), Ted Baker, VPC Specialty Lending Investments
Final Dividend Payment Date
AA, St Peter Port Capital Ltd
Trading Announcements
Capita, Merlin Entertainments, Ted Baker
Key Economic News
UK NIESR estimated GDP rose in the March-May 2017 period
In the UK, NIESR estimated gross domestic product (GDP) registered a rise of 0.20% on a MoM basis, in the March-May 2017 period. NIESR estimated GDP had registered a similar rise in the February-April 2017 period.
UK visible trade deficit narrowed in April
Visible trade deficit in the UK narrowed to £10.38 billion in April, following a revised visible trade deficit of £12.05 billion in the previous month. Market expectation was for the country's visible trade deficit to narrow to £12.00 billion.
UK trade deficit fell in April
Non-EU trade deficit in the UK dropped to £2.07 billion in April. The UK had posted a revised trade deficit of £3.89 billion in the prior month.
UK manufacturing production remained unchanged in April
In the UK, manufacturing production remained flat in April, on a YoY basis, less than market expectations for a rise of 0.70%. In the previous month, manufacturing production had registered a revised rise of 2.20%.
UK industrial production rose less than expected in April
In April, industrial production climbed 0.20% on a MoM basis in the UK, compared to a fall of 0.50% in the previous month. Markets were expecting industrial production to climb 0.70%.
UK total trade deficit fell in April
The UK has reported total trade deficit of £2.05 billion in April, following a revised total trade deficit of £3.90 billion in the previous month. Market expectation was for the nation to register a total trade deficit of £3.50 billion.
UK construction output surprisingly fell in April
In April, construction output recorded an unexpected drop of 1.60% in the UK on a monthly basis, less than market expectations for a rise of 0.40%. Construction output had registered a revised rise of 0.70% in the previous month.
UK industrial production dropped more than expected in April
In April, on a YoY basis, industrial production in the UK fell 0.80%, compared to an advance of 1.40% in the previous month. Markets were anticipating industrial production to ease 0.30%.
UK manufacturing production rose less than expected in April
Manufacturing production in the UK recorded a rise of 0.20% in April on a MoM basis, compared to a fall of 0.60% in the prior month. Market expectation was for manufacturing production to climb 0.80%.
UK construction output dropped more than expected in April
On an annual basis, construction output eased 0.60% in the UK, in April, more than market expectations for a drop of 0.30%. In the prior month, construction output had climbed by a revised 4.30%.
German current account surplus dropped in April
The non-seasonally adjusted current account surplus in Germany dropped to €15.10 billion in April, less than market expectations of a current account surplus of €24.50 billion. Germany had registered a revised current account surplus of €31.10 billion in the prior month.
German trade surplus declined in April
The seasonally adjusted trade surplus in Germany narrowed to €18.10 billion in April, compared to market expectations of a trade surplus of €23.00 billion. Germany had posted a revised trade surplus of €25.30 billion in the previous month.
German imports unexpectedly rose in April
In April, the seasonally adjusted imports registered an unexpected rise of 1.20% on a MoM basis in Germany, compared to a revised advance of 2.10% in the prior month. Markets were anticipating imports to fall 0.50%.
German labor costs rose in 1Q 2017
In 1Q 2017, on an annual basis, the working day adjusted labor costs in Germany registered a rise of 2.50%. Labor costs had recorded a revised rise of 2.90% in the prior quarter.
German labor costs rose in 1Q 2017
In Germany, the seasonally adjusted labor costs climbed 0.50% in 1Q 2017 on a quarterly basis. In the previous quarter, labor costs had advanced 1.50%.
German exports rose more than expected in April
The seasonally adjusted exports rose 0.90% on a MoM basis in April, in Germany, compared to an advance of 0.40% in the previous month. Markets were expecting exports to climb 0.30%.
French industrial production surprisingly dropped in April
On a MoM basis, industrial production unexpectedly eased 0.50% in April, in France, compared to a revised rise of 2.20% in the previous month. Market expectation was for industrial production to rise 0.20%.
French budget deficit widened in April
In April, budget deficit in France rose to €57.90 billion, from a budget deficit of €29.60 billion in the prior month.
French manufacturing production dropped more than expected in April
On a monthly basis, in April, manufacturing production eased 1.20% in France, higher than market expectations for a fall of 0.50%. Manufacturing production had registered a revised rise of 2.80% in the prior month.
US wholesale inventories dropped more than expected in April
In the US, the seasonally adjusted final wholesale inventories recorded a drop of 0.50% in April on a MoM basis, more than market expectations for a fall of 0.30%. The preliminary figures had recorded a drop of 0.30%. In the prior month, the wholesale inventories had risen 0.20%.
Net number of people employed in Canada advanced in May
In Canada, the net number of people employed advanced by 54.50 K in May, more than market anticipations of an advance of 15.00 K. The net number of people employed had registered an increase of 3.20 K in the previous month.
Part time employment in Canada eased in May
Part time employment dropped by 22.30 K in Canada, in May, compared to a gain of 34.30 K in the previous month.
Canadian unemployment rate rose in May
athe unemployment rate rose to a level of 6.60% in May, in Canada, meeting market expectations. In the previous month, the unemployment rate had recorded a reading of 6.50%.
Canadian participation rate climbed in May
In Canada, the participation rate climbed to 65.80% in May. The participation rate had registered a reading of 65.60% in the prior month.
Number of full time employment in Canada rose in May
The number of full time employment in Canada recorded an increase of 77.00 K in May, following a decline of 31.20 K in the prior month.
Canadian capacity utilisation advanced in 1Q 2017
In 1Q 2017, capacity utilisation climbed to 83.30% in Canada, lower than market expectations of a rise to a level of 83.50%. In the previous quarter, capacity utilisation had recorded a revised reading of 81.80%.
Japanese tertiary industry index rose more than expected in April
In April, on a monthly basis, the tertiary industry index rose 1.20% in Japan, more than market expectations for an advance of 0.50%. In the previous month, the tertiary industry index had dropped by a revised 0.30%.
Japanese machinery orders unexpectedly declined in April
In April on a MoM basis, machinery orders in Japan unexpectedly eased 3.10%, lower than market expectations for an advance of 0.50%. In the previous month, machinery orders had registered a revised rise of 1.40%.
Japanese machinery orders advanced less than expected in April
On an annual basis, in April, machinery orders rose 2.70% in Japan, less than market expectations for a rise of 7.40%. Machinery orders had dropped 0.70% in the previous month.