UK Market Snapshot
UK markets finished lower yesterday, following a slump in retail stocks. Debenhams declined 2.3%, after the retailer warned if the market volatility continues it could report full year profits at the lower end of expectations. Peer, Next and Marks & Spencer Group dropped 1.1% and 2.0%, respectively. On the flipside, miners, BHP Billiton, Anglo American and Rio Tinto advanced 2.4%. 3.2% and 3.3%, respectively, after Chinese Premier Li Keqiang stated that China has seen significant job creation from his programme that aimed at boosting its economy. Banks, Lloyds Banking Group, Barclays and Standard Chartered gained 0.3%, 1.5% and 1.8%, respectively, after the Bank of England (BoE) increased capital buffer for UK’s lenders to protect them from risks posed due to rapid growth in consumer credit and uncertain Brexit. The FTSE 100 declined 0.2%, to close at 7,434.4, while the FTSE 250 fell 0.8%, to settle at 19,526.8.
US Market Snapshot
US markets ended in the red yesterday, dragged down by losses in technology sector shares and after a vote on health care legislation was delayed by Senate Republicans, casting doubts about the US President Donald Trump’s pro-growth agenda. Facebook and Netflix lost 2.0% and 4.1%, respectively. NVIDIA dropped 3.7%, after the company stated that it had formed a joint venture with Volvo and Autoliv, down 1.4%, in order to become the standard technology in all self-driving cars in the future. Alphabet declined 2.6%, after Google was hit with a $2.72 billion antitrust fine by European Union’s (EU) antitrust regulators for giving illegal advantage to own comparison shopping service. However, Google has disagreed with the EU’s ruling and planned to file an appeal. The S&P 500 slipped 0.8%, to settle at 2,419.4. The DJIA shed 0.5%, to settle at 21,310.7, while the NASDAQ slid 1.6%, to close at 6,146.6.
Europe Market Snapshot
Other European markets closed in negative territory yesterday, amid a stronger Euro and concerns surrounding merger and profit warnings. Schaeffler plunged 12.8%, after the company trimmed its projected profit for 2017. Deutsche Telekom dropped 2.8%, after a report indicated that Sprint has paused merger talks with the company’s US unit, T-Mobile. Auto stocks, Fiat Chrysler Automobiles and Ferrari slipped 1.2% and 2.1%, respectively, after General Motors cut its forecast for new vehicle sales in the US in 2017. On the brighter side, STADA Arzneimittel advanced 3.3%, after the company did not get enough shareholders’ approval for the takeover offer by financial investors, Bain Capital and Cinven. The FTSEurofirst 300 index declined 0.7%, to close at 1,519.2. Among other European markets, the German DAX Xetra 30 slid 0.8%, to close at 12,671.0, while the French CAC-40 shed 0.7%, to settle at 5,258.6.
Asia Market Snapshot
Markets in Asia are trading lower this morning, tracking overnight weakness in the US stock markets. In Japan, technology stocks, Alps Electric, Tokyo Electron and Advantest have declined 1.4%, 2.7% and 3.0%, respectively. Toshiba has fallen 1.0%, ahead of its annual meeting scheduled to be held today. Meanwhile, a report indicated that its memory unit has received a fresh offer from Western Digital and KKR & Co. In Hong Kong, AAC Technologies Holdings, Kingdee International Software Group and Kingsoft have dropped 1.3%, 1.5% and 2.2%, respectively. Brokers, CITIC Securities and Haitong Securities have slid 0.4% and 1.1%, respectively. In South Korea, index majors, SK Hynix and LG Electronics have slipped 1.3% and 3.9%, respectively. The Nikkei 225 index is trading 0.3% lower at 20,166.2. The Hang Seng index is trading 0.6% down at 25,678.0, while the Kospi index is trading 0.2% lower at 2,386.9.
Key Corporate Announcements Today
AGMs
7Digital Group, Aberdeen New Thai Inv Trust, Air Partner, Amati VCT, Amati Vct 2, BNN Technology, EJF Investments Ltd NPV, Gulfsands Petroleum, Horizon Discovery Group, Impellam Group, Katoro Gold, Medica Group, Norman Broadbent, Paragon Entertainment Ltd (DI), President Energy, Slingsby H.C, Synairgen, TOC Property Backed Lending Trust, TyraTech Inc. (DI / REGS), Victoria Oil & Gas
Final Dividend Payment Date
BBGI SICAV S.A. (DI), BlackRock Emerging Europe, STM Group
Trading Announcements
Bunzl, Kier Group, Metro Bank, Tullow Oil
Key Corporate Announcements for Tomorrow
AGMs
3i Group, Alexander Mining, Anpario, Atlantis Resources Limited (DI), Beowulf Mining, Blur Group, Condor Gold, Crimson Tide, DCD Media, Eland Oil & Gas, Eurasia Mining, European Real Estate Investment Trust Limited Part Pref Shs, F & C UK High Income Trust, Federal Grid Company Of Unified Energy System, Public Joint-Stock Company GDR (Reg S), Fishing Republic, Gusbourne, Harvey Nash Group, ndependent Oil & Gas, JD Sports Fashion, KEFI Minerals, Nautilus Marine Services, OJSC Surgutneftegas ADR, P2P Global Investments, Pacific Assets Trust, Press Corp. GDR (Reg S), Richland Resources Ltd, Rockrose Energy, Rose Petroleum, Scottish Mortgage Inv Trust, Serica Energy, Sirius Minerals, Stobart Group Ltd., Strat Aero, Strategic Minerals, Tiziana Life Sciences, Trans-Siberian Gold, Vianet Group, Volvere, Westminster Group, Wincanton, World Trade Systems
EGMs
Final Ex-Dividend Date
Anglo Pacific Group, B.P. Marsh & Partners, Babcock International Group, Bonmarche Holdings, Braemar Shipping Services, Charles Stanley Group, Coca-Cola HBC AG (CDI), Cranswick, De La Rue, Fidelity China Special Situations, Gabelli Value Plus Trust, Gama Aviation, Hogg Robinson Group, International Consolidated Airlines Group SA (CDI), Nex Group, Next Fifteen Communications, Northern Investors Co, Octopus Apollo VCT, Oxford Technology 3 VCT, Oxford Technology VCT, Phaunos Timber Fund Ltd., Premier Technical Services Group, Record, Renewi, Royal Mail, Tate & Lyle, Triple Point Income VCT, Triple Point Income VCT A, Triple Point Income VCT C, Triple Point Income VCT D, Value and Income Trust, Vertu Motors
Final Dividend Payment Date
Applegreen, Augean, British American Inv Trust, Centrica, Morrison (Wm) Supermarkets, Tongaat-Hulett Ltd.
Interim Ex-Dividend Date
Diverse Income Trust (The), Duke Royalty Limited, EJF Investments Ltd NPV, Electronic Data Processing, Game Digital, Globalworth Real Estate Investments Limited, Invesco Income Growth Trust, JPMorgan Global Markets Emerging Income Trust, JPMorgan Income & Capital Inv Trust, Lowland Investment Co, Martin Currie Global Portfolio Trust, Ranger Direct Lending Fund, RWS Holdings, Scottish Inv Trust
Interim Dividend Payment Date
Henderson European Focus Trust
Special Ex-Dividend Payment Date
Foresight 4 VCT, Record, Triple Point Income VCT
Quarterly Payment Date
Volta Finance Limited
Quarterly Ex-Dividend Date
Alpha Real Trust Ltd., British Land Company, Real Estate Credit Investments Ltd, Real Estate Investors
Trading Announcements
Harvey Nash Group, John Laing Group, Wood Group (John)
Key Economic News
UK CBI distributive trade survey's retail sales balance advanced in June
Compared to a reading of 2.00% in the previous month, the CBI distributive trade survey's retail sales balance climbed to 12.00% in June, in the UK. Market expectation was for the CBI distributive trade survey's retail sales balance to advance to 5.00%.
ECB’s Draghi: Stimulus could be scaled back if economy improves
The European Central Bank (ECB) President, Mario Draghi, indicated that the central bank’s stimulus policies are working and will be gradually withdrawn as the Euro-zone economy accelerates. He also warned that any adjustments to the ECB’s stance have to be made gradually, and only when the improving dynamics that justify them appear sufficiently secure.
Italian consumer confidence index advanced in June
In June, the consumer confidence index in Italy rose to a level of 106.40, higher than market expectations of an advance to 105.80. The consumer confidence index had recorded a level of 105.40 in the previous month.
Italian business confidence index unexpectedly rose in June
In June, the business confidence index in Italy registered an unexpected rise to 107.30, compared to market expectations of a fall to a level of 106.70. The business confidence index had registered a reading of 106.90 in the previous month.
Fed’s Yellen still backs gradual interest rate hikes
The US Federal Reserve (Fed) Chairwoman, Janet Yellen, stated that she does not see another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash. She also reiterated her view that the US central bank would continue to raise interest rates only gradually.
US S&P/Case-Shiller composite HPI of 20 metropolitan areas rose less than expected in April
In the US, the S&P/Case-Shiller composite home price index (HPI) of 20 metropolitan areas rose 5.67% on a YoY basis in April, less than market expectations for a rise of 5.90%. In the previous month, the S&P/Case-Shiller composite HPI of 20 metropolitan areas had registered a revised rise of 5.88%.
US CB consumer confidence index unexpectedly rose in June
In June, the CB consumer confidence index recorded an unexpected rise to 118.90 in the US, higher than market expectations of a fall to 116.00. In the prior month, the CB consumer confidence index had registered a revised level of 117.60.
US Redbook index rose in the last week
The seasonally adjusted Redbook index rose 0.60% in the US on a MoM basis, in the week ended 23 June 2017. The Redbook index had recorded a rise of 0.70% in the prior week.
US Redbook index rose in the last week
The Redbook index recorded a rise of 2.20% in the US on an annual basis, in the week ended 23 June 2017. In the prior week, the Redbook index had climbed 2.80%.
US S&P/Case-Shiller HPI climbed in April
In April, the S&P/Case-Shiller HPI advanced to 197.19 in the US. In the previous month, the S&P/Case-Shiller HPI had registered a revised reading of 195.38.
US Richmond Fed manufacturing index advanced in June
In June, the Richmond Fed manufacturing index in the US advanced to 7.00, compared to market expectations of an advance to 5.00. In the prior month, the Richmond Fed manufacturing index had registered a reading of 1.00.
US S&P/Case-Shiller composite index of 20 metropolitan areas rose less than expected in April
In the US, the seasonally adjusted S&P/Case-Shiller composite index of 20 metropolitan areas climbed 0.28% in April on a MoM basis, compared to a revised rise of 0.53% in the previous month. Markets were anticipating the S&P/Case-Shiller composite index of 20 metropolitan areas to advance 0.50%.