UK Market Snapshot
UK markets finished mixed yesterday. Meanwhile, the Pound strengthened against its peers after the British consumer price inflation reached a four-year high level in May. Capita surged 15.2%, after the company announced that its turnaround is progressing better than expected. The company also projected that its profitability would improve in second half of 2017. Royal Bank of Scotland Group edged 0.8% up, after news indicated that the bank is close to a multi-billion settlement with the US Federal Housing Finance Agency over toxic mortgage bonds mis-selling. On the losing side, Merlin Entertainments declined 2.7%, after the company stated that its domestic demand had decreased due to recent terror attacks in the country. The FTSE 100 declined 0.2%, to close at 7,500.4, while the FTSE 250 rose 0.9%, to settle at 19,859.5.
US Market Snapshot
US markets closed in positive territory yesterday, with the S&P 500 and the DJIA indices closing at record high level, amid a rebound in technology sector shares. Apple, Alphabet, Cisco Systems, Facebook and Visa advanced 0.8%, 1.1%, 1.4%, 1.5% and 1.7%, respectively. Tesla climbed 4.7%, following a broker upgrade on the stock to ‘Buy’ from ‘Hold’. Eli Lilly added 0.4%, after the drugmaker announced that the Food and Drug Administration (FDA) granted a fast track designation to its pain drug with Pfizer, down 0.4%. On the flipside, Cheesecake Factory plunged 9.9%, after the company trimmed its same-store sales outlook for the second quarter. The S&P 500 gained 0.5%, to settle at 2,440.4. The DJIA rose 0.4%, to settle at 21,328.5, while the NASDAQ advanced 0.7%, to close at 6,220.4.
Europe Market Snapshot
Other European markets ended in the green yesterday, lifted by a rally in technology stocks. Temenos Group, Ingenico Group and Dialog Semiconductor advanced 1.5%, 1.7% and 5.6%, respectively. Luxottica Group climbed 3.1%, after a leading broker upgraded its rating on the stock to ‘Overweight’ from ‘Equal weight’. Deutsche Bank rose 0.7%, after the lender agreed to pay $170.0 million to settle an investor lawsuit which accused it of colluding with other banks to manipulate the Euribor and related derivatives. Peer, Commerzbank edged 0.7% up. BASF added 0.3%, after a report indicated that the company submitted a preliminary bid for assets that Bayer, up 1.4%, planned to sale. The FTSEurofirst 300 index gained 0.5%, to close at 1,527.7. Among other European markets, the German DAX Xetra 30 rose 0.6%, to close at 12,765.0, while the French CAC-40 advanced 0.4%, to settle at 5,261.7.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning, ahead of the US Federal Reserve’s (Fed) interest rate decision due later today. In Japan, Ono Pharmaceutical has jumped 5.9%, after the company announced that it will repurchase up to 20.0 million shares worth about ¥50.0 billion between 14 June to 29 September and will retire up to 50.0 million shares of its common stock on 31 October. Technology firms, TDK, Konami Holdings and Kyocera have gained 0.3%, 0.6% and 2.4%, respectively. In Hong Kong, financial stocks, HSBC Holdings, CITIC Securities and Bank of East Asia have fallen 0.2%, 0.4% and 0.9%, respectively. In South Korea, Samsung Electronics, POSCO and SK Innovation have declined 0.2%, 0.4% and 1.3%, respectively. The Nikkei 225 index is trading 0.1% higher at 19,919.1. The Hang Seng index is trading 0.2% down at 25,795.4, while the Kospi index is trading 0.2% lower at 2,370.0.
Key Corporate Announcements Today
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 Corporate Announcements for Tomorrow
AGMs
365 Agile Group, Attraqt Group, City Merchants High Yield Trust, CityFibre Infrastructure Holdings, Cyanconnode Holdings, Dragon-Ukrainian Properties & Development, Himalayan Fund NV, International Consolidated Airlines Group SA (CDI), Loopup Group, Metals Exploration, Morrison (Wm) Supermarkets, Motif Bio, OptiBiotix Health, Ranger Direct Lending Fund, Ranger Direct Lending ZDP Shs, Serabi Gold, Sprue Aegis
EGMs
Fusionex International, Amec Foster Wheeler
Final Ex-Dividend Date
3i Group, 3i Infrastructure, Aberdeen Japan Investment Trust, Acal, Alliance Pharma, Amati Vct 2, Augean, Electrocomponents, First Derivatives, Forterra, Hargreave Hale AIM VCT 2, Harvey Nash Group, Intermediate Capital Group, JPMorgan Euro Small Co. Trust, Marshalls, Mears Group, New Century AIM VCT 2, Persimmon, Pets at Home Group, ProVen Growth & Income VCT, ProVen VCT, Restaurant Group, S&U, Safestyle UK, Scisys, Severn Trent, Stobart Group Ltd., Telford Homes, Templeton Emerging Markets Inv Trust
Final Dividend Payment Date
Action Hotels, Ascential
Interim Ex-Dividend Date
A&J Mucklow Group, Acorn Income Fund Ld, F&C Managed Portfolio Trust Income Shares, Hollywood Bowl Group, NewRiver REIT, Personal Assets Trust, Shaftesbury, Standard Life Private Equity Trust, Topps Tiles, Worldwide Healthcare Trust
Interim Dividend Payment Date
Special Ex-Dividend Payment Date
Best of the Best, Marshalls, NewRiver REIT, Persimmon
Quarterly Payment Date
Canadian General Investments Ltd.
Quarterly Ex-Dividend Date
Assura, Ediston Property Investment Company, General Electric Co, TwentyFour Select Monthly Income Fund Limited, XP Power Ltd. (DI)
Trading Announcements
Key Economic News
UK CPI rose more than expected in May
On a YoY basis, the consumer price index (CPI) rose 2.90% in the UK, in May, higher than market expectations for a rise of 2.70%. The CPI had recorded a rise of 2.70% in the prior month.
UK CPI rose more than expected in May
The CPI advanced 0.30% on a MoM basis in the UK, in May, more than market expectations for a rise of 0.20%. In the prior month, the CPI had recorded a rise of 0.50%.
UK core CPI rose more than expected in May
The core CPI climbed 2.60% on an annual basis in the UK, in May, compared to an advance of 2.40% in the previous month. Markets were anticipating the core CPI to climb 2.40%.
UK output PPI advanced as expected in May
On an annual basis, the non-seasonally adjusted output producer price index (PPI) advanced 3.60% in the UK, in May, in line with market expectations. In the previous month, output PPI had registered a similar rise.
UK input PPI dropped more than expected in May
On a monthly basis in the UK, the non-seasonally adjusted input PPI fell 1.30% in May, higher than market expectations for a drop of 0.50%. In the prior month, input PPI had risen 0.10%.
UK PPI core output advanced less than expected in May
On an annual basis, the non-seasonally adjusted PPI core output rose 2.80% in May, in the UK, lower than market expectations for an advance of 2.90%. In the previous month, PPI core output had registered a similar rise.
UK retail price index ex-mort int. payments rose more than expected in May
The retail price index ex-mort int. payments recorded a rise of 3.90% in the UK on a YoY basis in May, higher than market expectations for an advance of 3.80%. The retail price index ex-mort int. payments had registered a rise of 3.80% in the previous month.
UK input PPI advanced less than expected in May
The non-seasonally adjusted input PPI in the UK climbed 11.60% in May on a YoY basis, compared to a revised advance of 15.60% in the previous month. Market anticipation was for input PPI to climb 13.50%.
UK house price index advanced more than expected in April
On an annual basis, the house price index in the UK registered a rise of 5.60% in April, higher than market expectations for an advance of 3.60%. The house price index had risen by a revised 4.50% in the previous month.
UK retail price index advanced more than expected in May
On an annual basis, the retail price index recorded a rise of 3.70% in May, in the UK, more than market expectations for a rise of 3.50%. In the previous month, the retail price index had climbed 3.50%.
UK PPI core output rose less than expected in May
In the UK, the non-seasonally adjusted PPI core output rose 0.10% in May on a monthly basis, lower than market expectations for an advance of 0.20%. PPI core output had registered a rise of 0.50% in the prior month.
UK retail price index advanced in May
The retail price index climbed 0.40%, on monthly basis, to a level of 271.70 in the UK, in May, compared to market expectations of 271.40. The retail price index had recorded a level of 270.60 in the previous month.
UK output PPI advanced as expected in May
The non-seasonally adjusted output PPI in the UK rose 0.10% in May on a monthly basis, in line with market expectations. Output PPI had climbed 0.40% in the prior month.
Euro-zone economic sentiment index rose in June
In the Euro-zone, the economic sentiment index climbed to 37.70 in June. In the prior month, the economic sentiment index had recorded a level of 35.10.
German current situation index climbed in June
The current situation index registered a rise to 88.00 in Germany, in June, higher than market expectations of an advance to a level of 85.00. In the previous month, the current situation index had recorded a level of 83.90.
German wholesale price index slid in May
In May, on a monthly basis, the wholesale price index slid 0.70% in Germany. In the prior month, the wholesale price index had climbed 0.30%.
German wholesale price index rose in May
On an annual basis, the wholesale price index in Germany registered a rise of 3.10% in May. In the previous month, the wholesale price index had climbed 4.70%.
German economic sentiment index surprisingly slid in June
In Germany, the economic sentiment index recorded an unexpected drop to a level of 18.60 in June, lower than market expectations of a rise to 21.70. In the previous month, the economic sentiment index had recorded a reading of 20.60.
Spanish HICP index remained flat in May
On a monthly basis, the final harmonised consumer price (HICP) index in Spain, remained unchanged in May, meeting market expectations. In the prior month, the HICP index had risen 0.90%. The preliminary figures had also indicated a flat reading.
Spanish CPI declined as expected in May
In May, on a MoM basis, the final CPI in Spain dropped 0.10%, compared to an advance of 1.00% in the previous month. The preliminary figures had also recorded a drop of 0.10%. Market anticipation was for the CPI to fall 0.10%.
Spanish HICP index advances as expected in May
In May, the final HICP index rose 2.00% on a YoY basis in Spain, compared to an advance of 2.60% in the prior month. Markets were expecting the HICP index to advance 2.00%. The preliminary figures had also indicated an advance of 2.00%.
Spanish CPI advanced as expected in May
In May, the final CPI registered a rise of 1.90% on an annual basis in Spain, compared to an advance of 2.60% in the prior month. Markets were expecting the CPI to advance 1.90%. The preliminary figures had also indicated an advance of 1.90%.
US producer price advanced more than expected in May
Producer price in the US recorded a rise of 2.40% in May on an annual basis, higher than market expectations for a rise of 2.30%. Producer price had recorded a rise of 2.50% in the previous month.
US Redbook index rose in the last week
In the week ended 09 June 2017, on a monthly basis, the seasonally adjusted Redbook index in the US climbed 0.50%. The Redbook index had advanced 0.70% in the prior week.
US producer price (ex-food & energy) rose more than expected in May
On a monthly basis, producer price (ex-food & energy) rose 0.30% in May, in the US, compared to an advance of 0.40% in the previous month. Markets were expecting producer price (ex-food & energy) to climb 0.10%.
US Redbook index rose in the last week
In the US, the Redbook index advanced 2.10% on an annual basis, in the week ended 09 June 2017. In the previous week, the Redbook index had registered a rise of 2.50%.
US producer price (ex-food & energy) advanced more than expected in May
In May, on a YoY basis, producer price (ex-food & energy) registered a rise of 2.10% in the US, higher than market expectations for a rise of 1.90%. In the prior month, producer price (ex-food & energy) had registered a rise of 1.90%.
US small business optimism index remained flat in May
In May, the small business optimism index in the US remained flat at a level of 104.50, meeting market expectations.
US producer price steadied in May
On a monthly basis, in the US, producer price remained flat in May, in line with market expectations. Producer price had recorded a rise of 0.50% in the previous month.
Japanese industrial production climbed in April
In April, on a monthly basis, the final industrial production rose 4.00% in Japan. Industrial production had recorded a drop of 1.90% in the prior month. The preliminary figures had also recorded a rise of 4.00%.
Chinese industrial production (YTD) rose more than expected in May
In May, on an annual basis, industrial production (YTD) in China climbed 6.70%, compared to a similar rise in the previous month. Market anticipation was for industrial production (YTD) to climb 6.60%.
Chinese retail sales (YTD) rose as expected in May
In China, retail sales (YTD) registered a rise of 10.30% in May on an annual basis, compared to an advance of 10.20% in the previous month. Markets were expecting retail sales (YTD) to advance 10.30%.
Chinese fixed assets investment excl. rural YTD rose less than expected in May
Fixed assets investment excl. rural YTD in China rose 8.60% on a YoY basis in May, less than market expectations for a rise of 8.80%. In the prior month, fixed assets investment excl. rural YTD had risen 8.90%.
Chinese industrial production advanced more than expected in May
In May, industrial production climbed 6.50% on a YoY basis in China, compared to a similar rise in the previous month. Markets were expecting industrial production to advance 6.40%.
Chinese retail sales rose as expected in May
On a YoY basis, retail sales climbed 10.70% in May, in China, in line with market expectations. In the prior month, retail sales had registered a similar rise.