UK Market Snapshot
UK markets finished lower yesterday. PayPoint, United Utilities Group and JD Sports Fashion declined 3.5%, 4.2% and 4.6%, respectively, as their stocks went ex-dividend. Royal Mail dropped 2.0%, after the company confirmed that it was looking for a possible sale of its Mount Pleasant sorting office but with no certainty regarding when or whether any transaction will be agreed. On the brighter side, Imagination Technologies Group surged 16.4%, after the company announced that it has put itself up for sale. Shire climbed 3.7%, after the European Medicines Agency (EMA) validated the drugmaker’s marketing authorisation application for its Veyvondi drug used to prevent bleeding. Peers, AstraZeneca and GlaxoSmithKline advanced 2.0% and 2.3%, respectively. Precious metal miners, Fresnillo, Randgold Resources and Hochschild Mining gained 0.8%, 1.2% and 2.2%, respectively. The FTSE 100 declined 0.1%, to close at 7,439.3, while the FTSE 250 fell 0.1%, to settle at 19,658.4.
US Market Snapshot
US markets closed mostly lower yesterday, dragged down by losses in financial and consumer Staples stocks. Banks, JPMorgan Chase, Bank of America and Goldman Sachs Group slipped 0.1%, 0.9% and 1.2%, respectively. Accenture declined 4.0%, after the company cut its annual revenue outlook. On the flipside, Oracle surged 8.6%, after the company’s earnings for the fourth quarter surpassed analyst’s expectations. HCA Healthcare, Community Health Systems and Tenet Healthcare advanced 2.5%, 5.1% and 6.9%, respectively, after the release of the Senate Republican health bill. Staples jumped 6.2%, after a report indicated that private equity firm Sycamore Partners is in advanced talks to buy the former in a possible deal worth around $6.0 billion. Healthcare stocks, Humana, Aetna and UnitedHealth Group added 0.3%, 0.6% and 0.9%, respectively. The S&P 500 marginally slipped to settle at 2,434.5. The DJIA shed 0.1%, to settle at 21,397.3, while the NASDAQ marginally advanced to close at 6,236.7.
Europe Market Snapshot
Other European markets ended in positive territory yesterday, boosted by gains in healthcare sector stocks. Novartis jumped 5.0%, after it reported positive trial results for its drug, Ilaris, which reduces risks for heart attack survivors. Roche Holding, Fresenius Medical Care and Merck KGaA added 0.2%, 1.4% and 2.6%, respectively. On the losing side, Subsea 7 declined 4.4%, following a broker downgrade on the stock to ‘Equal weight’ from ‘Overweight’. BNP Paribas, Credit Suisse Group and Deutsche Bank slipped 0.3%, 0.5% and 0.7%, respectively. Vinci slid 0.6%, after a report indicated that it would propose to the state for taking up a controlling stake in Aeroports de Paris. The FTSEurofirst 300 index marginally gained to close at 1,527.9. Among other European markets, the German DAX Xetra 30 rose 0.2%, to close at 12,794.0, while the French CAC-40 advanced 0.1%, to settle at 5,281.9.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning, amid slight gain in crude oil prices. Meanwhile, Chinese markets are under pressure after news emerged that the nation’s banking regulator has ordered banks to review the borrowings of major Chinese conglomerates. In Japan, telecommunication firms, KDDI and SoftBank Group have slipped 0.4% and 0.5%, respectively. On the contrary, auto exporters, Honda Motor, Mazda Motor and Mitsubishi Motors have risen 0.6%, 0.8% and 1.4%, respectively. In Hong Kong, banks, HSBC Holdings, Bank of China and Industrial and Commercial Bank of China have added 0.4%, 0.8% and 1.4%, respectively. In South Korea, carmakers, Kia Motors and Hyundai Motor have gained 1.6% and 1.9%, respectively. The Nikkei 225 index is trading marginally lower at 20,107.8. The Hang Seng index is trading 0.2% up at 25,718.6, while the Kospi index is trading marginally higher at 2,371.0.
Key Corporate Announcements Today
AGMs
BH Macro Ltd. GBP Shares, Boohoo.com, Elderstreet VCT, First Derivatives, Griffin Mining Ltd., Lenta Ltd GDR (Each 5 Repr 1 Ord) (144A), New Century AIM VCT 2, Oracle Coalfields, PJSC Tatneft ADS, Trinity Exploration & Production, Aon
Final Dividend Payment Date
Cape, Flowtech Fluidpower, Inchcape, Keywords Studios, M. P. Evans Group, Maven Income & Growth 2 VCT, Midwich Group, Mincon Group, Moss Bros Group, Provident Financial, Ted Baker, Triple Point VCT 2011, Triple Point Vct 2011 A, Venture Life Group
Interim Dividend Payment Date
Baring Emerging Europe, Impax Asset Management Group, Inland Homes, Keystone Inv Trust, Mid Wynd International Inv Trust, Numis Corporation, Scottish American Inv Company, SQN Secured Income Fund, Standard Life Equity Income Trust, Titon Holdings, Town Centre Securities, ZPG Plc
Key Corporate Announcements for Monday
AGMs
Amedeo Resources, Armadale Capital, BH Global Ltd. GBP Shares, Borders & Southern Petroleum, Curtis Banks Group, Edenville Energy, Exillon Energy, Galantas Gold Corp., Nostrum Oil & Gas, Phoenix Spree Deutschland Limited Shs NPV, PJSC RusHydro ADR, SEC S.P.A. (CDI), Surgical Innovations Group, Tethyan Resources, Tex Holdings, W Resources, Warpaint London
EGMs
Phoenix Spree Deutschland Limited Shs NPV
Final Dividend Payment Date
Andrews Sykes Group, Xaar, Zhejiang Expressway Co 'H' Shares
Interim Dividend Payment Date
Redefine International
Quarterly Payment Date
Royal Dutch Shell 'A', Royal Dutch Shell 'B'
Key Economic News
UK CBI trends selling prices remained unchanged in June
In June, CBI trends selling prices in the UK remained flat at a level of 23.00, higher than market expectations of a drop to 20.00.
UK balance of firms reporting total order book above normal surprisingly advanced in June
The balance of firms reporting total order book above normal advanced unexpectedly to a level of 16.00 in June, in the UK, compared to a reading of 9.00 in the previous month. Market expectation was for the balance of firms reporting total order book above normal to drop to 7.00.
Euro-zone consumer confidence index advanced in June
The flash consumer confidence index in the Euro-zone advanced to -1.30 in June, compared to market expectations of an advance to -3.00. The consumer confidence index had registered a reading of -3.30 in the previous month.
French own-company production outlook dropped in June
Own-company production outlook dropped to 13.00 in France, in June. In the prior month, own-company production outlook had registered a revised reading of 16.00.
French production outlook indicator advanced in June
The production outlook indicator in France advanced to 17.00 in June, compared to a reading of 7.00 in the prior month.
French industrial business climate index unexpectedly rose in June
The industrial business climate index advanced unexpectedly to a level of 106.00 in June, in France, compared to a level of 105.00 in the previous month. Market expectation was for the industrial business climate index to record a steady reading.
Swiss exports climbed in May
Exports in Switzerland advanced 2.90% in May on a MoM basis. Exports had registered a revised drop of 2.40% in the prior month.
Swiss trade surplus widened in May
Trade surplus in Switzerland rose to CHF 3.40 billion in May. Switzerland had posted a trade surplus of CHF 1.96 billion in the prior month.
US housing price index advanced more than expected in April
The housing price index advanced 0.70% on a monthly basis in the US in April, more than market expectations for a rise of 0.50%. In the previous month, the housing price index had registered a revised similar rise.
US Kansas City Fed manufacturing activity index rose in June
In June, the Kansas City Fed manufacturing activity index advanced to 11.00 in the US, compared to market expectations of a rise to 9.00. In the previous month, the Kansas City Fed manufacturing activity index had recorded a reading of 8.00.
US initial jobless claims rose in the last week
In the week ended 17 June 2017, the seasonally adjusted initial jobless claims in the US registered a rise to 241.00 K, compared to market expectations of an advance to a level of 240.00 K. Initial jobless claims had registered a revised level of 238.00 K in the previous week.
US continuing jobless claims unexpectedly climbed in the last week
In the US, the seasonally adjusted continuing jobless claims recorded an unexpected rise to 1944.00 K in the week ended 10 June 2017, compared to market expectations of a drop to a level of 1928.00 K. Continuing jobless claims had recorded a revised level of 1936.00 K in the previous week.
US leading indicator rose as expected in May
On a monthly basis, leading indicator climbed 0.30% in May, in the US, at par with market expectations. In the prior month, leading indicator had registered a revised rise of 0.20%.
Canadian retail sales advanced more than expected in April
Retail sales in Canada recorded a rise of 0.80% in April on a MoM basis, higher than market expectations for an advance of 0.30%. Retail sales had risen by a revised 0.50% in the previous month.
Canadian retail sales (ex-autos) advanced more than expected in April
In Canada, retail sales (ex-autos) registered a rise of 1.50% in April, on a monthly basis, more than market expectations for a rise of 0.70%. In the prior month, retail sales (ex-autos) had fallen by a revised 0.10%.
Japanese manufacturing PMI dropped in June
The preliminary manufacturing PMI dropped to 52.00 in Japan, in June, compared to a reading of 53.10 in the prior month.