UK Market Snapshot
UK markets finished in negative territory yesterday, amid continuing political turmoil in the UK after Theresa May lost parliamentary majority last week. Acacia Mining plunged 13.0%, after the Tanzanian government accused the precious metal miner of operating illegally in the East African country and evading taxes. Peers, Randgold Resources, Hochschild Mining and Fresnillo declined 1.9%, 4.7% and 4.9%, respectively, tracking losses in gold prices. Ocado Group tumbled 6.7%, after the retailer announced that it would raise £350.0 million by launching bonds and making changes to its credit arrangements in order to expand capacity and develop software. Rio Tinto slid 0.6%, after Glencore, down 0.3%, offered to acquire its Australian thermal coal assets for about $2.5 billion. The FTSE 100 declined 0.2%, to close at 7,511.9, while the FTSE 250 fell 0.4%, to settle at 19,682.7.
US Market Snapshot
US markets closed lower yesterday, weighed down by losses in technology sector shares. Apple declined 2.4%, following a broker downgrade on the stock to ‘Neutral’ from ‘Buy’. Amazon.com, Advanced Micro Devices and Netflix dropped 1.4%, 1.6% and 4.2%, respectively. Coherus Biosciences sank 23.9%, after the company announced that the Food and Drug Administration (FDA) rejected its CHS-1701 drug, a biosimilar version of Amgen’s Neulasta. On the brighter side, apparel stocks, Nike, Hanesbrands and Under Armour climbed 1.1%, 3.4% and 4.9%, respectively. General Electric advanced 3.6%, after the company stated that its CEO, Jeff Immelt, would step down from his role to be replaced by John Flannery. The S&P 500 slipped 0.1%, to settle at 2,429.4. The DJIA shed 0.2%, to settle at 21,235.7, while the NASDAQ slid 0.5%, to close at 6,175.5.
Europe Market Snapshot
Other European markets ended in the red yesterday, as political uncertainties in the UK and France and a slump in technology stocks dented investors’ sentiment. Dialog Semiconductor, ams and STMicroelectronics plummeted 5.3%, 8.3% and 8.9%, respectively. Pharmaceutical stocks, Santhera Pharmaceuticals Holding, Molecular Partners and Newron Pharmaceuticals dropped 1.9%, 2.5% and 4.3%, respectively. Dassault Systemes declined 2.7%, after the company inked a deal to acquire a Dutch company having specialisation in marine and offshore engineering software. German lenders, Commerzbank and Deutsche Bank lost 0.8% and 1.9%, respectively. Vonovia slipped 0.9%, after the company announced that 49.86% of its shareholders chose scrip dividend over cash dividend. The FTSEurofirst 300 index fell 0.9%, to close at 1,520.5. Among other European markets, the German DAX Xetra 30 slid 1.0%, to close at 12,690.4, while the French CAC-40 shed 1.1%, to settle at 5,240.6.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning. In Japan, technology giants, DeNA and Yahoo Japan have declined 1.5% and 2.1%, respectively. On the contrary, crude oil firms, Japan Petroleum Exploration, Inpex and JXTG Holdings have advanced 1.2%, 1.7% and 2.9%, respectively, following higher oil prices. In Hong Kong, real estate stocks, Henderson Land Development and China Vanke have climbed 1.1% and 2.8%, respectively, while Cheung Kong Property Holdings and Hang Lung Properties have slipped 0.3% and 0.7%, respectively. Brokers, CITIC Securities and Haitong Securities have added 0.3% and 0.8%, respectively. In South Korea, technology stocks, Samsung Electronics, SK Hynix and LG Display have risen 0.2%, 1.2% and 6.2%, respectively. Carmakers, Kia Motors and Hyundai Motor have gained 1.0% and 2.5%, respectively. The Nikkei 225 index is trading 0.1% lower at 19,885.7. The Hang Seng index is trading 0.4% up at 25,799.6, while the Kospi index is trading 0.5% higher at 2,370.2.
Key Corporate Announcements Today
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 Corporate Announcements for Tomorrow
AGMs
Christie Group, Concepta, Futura Medical, Global Resources Investment Trust, HSS Hire Group, IGas Energy, Iofina, Manx Telecom, Maven Income & Growth 2 VCT, NB Global Floating Rate Income Fund Ltd GBP, Steppe Cement Ltd, Tax Systems, Touchstar, Walcom Group (DI), Witan Pacific Inv Trust
Final Dividend Payment Date
Compagnie de St-Gobain SA, Share plc
Interim Ex-Dividend Date
Telefonica SA
Interim Dividend Payment Date
Diploma, JPMorgan Elect Managed Growth Shares, JPMorgan Elect Managed Income Shares, JPMorgan Global Convertibles Income Fund Ltd
Trading Announcements
Bellway, The Gym Group, WH Smith
Key Economic News
French business sentiment index remained flat in May
In May, the business sentiment index in France remained steady at 105.00. Markets were anticipating the business sentiment index to record a flat reading.
Italian industrial production eased in April
The non-seasonally adjusted industrial production eased 6.50% in Italy on an annual basis, in April. In the prior month, industrial production had registered a rise of 7.60%.
Italian industrial production advanced less than expected in April
The working day adjusted industrial production in Italy recorded a rise of 1.00% in April on an annual basis, less than market expectations for a rise of 2.50%. In the previous month, industrial production had risen by a revised 2.90%.
Italian industrial production unexpectedly dropped in April
In April, on a monthly basis, the seasonally adjusted industrial production recorded an unexpected drop of 0.40% in Italy, lower than market expectations for a rise of 0.20%. In the previous month, industrial production had advanced 0.40%.
US posted budget deficit in May
Budget deficit in the US stood at $88.43 billion in May, compared to market expectations of a budget deficit of $87.00 billion. The US had posted a budget surplus of $182.43 billion in the previous month.
Japanese business survey index (BSI) of large manufacturing industries declined in 2Q 2017
Business survey index (BSI) of large manufacturing industries in Japan fell to -2.90 on a quarterly basis, in 2Q 2017. In the prior quarter, business survey index (BSI) of large manufacturing industries stood at 1.10.
Japanese machine tool orders advanced in May
The flash machine tool orders recorded a rise of 24.40% on a YoY basis, in May, in Japan. In the prior month, machine tool orders had risen 34.70%.
Japanese net employment outlook advanced in 3Q 2017
The net employment outlook recorded a rise to 24.00% in Japan, in 3Q 2017, compared to a reading of 23.00% in the prior quarter.
Chinese employment outlook advanced in 3Q 2017
In 3Q 2017, employment outlook rose to a level of 5.00% in China, compared to a reading of 4.00% in the previous quarter.