UK Market Snapshot
UK markets finished higher on Friday, boosted by gains in multinational companies as the Pound weakened against its peers after the release of disappointing industrial production, manufacturing production and total trade balance data for May. easyJet jumped 5.4%, following a broker upgrade on the stock to ‘Outperform’ from ‘Neutral’. Dunelm Group climbed 3.9%, after the company reported a rise in its revenue for the fourth quarter. AVEVA Group advanced 2.2%, after the company announced that it has started the fiscal year 2018 on a strong note and its forecast for the full year remains at par with management expectations. On the losing side, Howden Joinery shed 0.3%, after the company’s founder and CEO, Matthew Ingle, announced his retirement. The FTSE 100 advanced 0.2%, to close at 7,350.9, while the FTSE 250 rose 0.1%, to settle at 19,395.1.
US Market Snapshot
US markets ended in the green on Friday, buoyed by a rebound in technology sector stocks and stronger than expected nonfarm payrolls data for June. Synchronoss Technologies advanced 4.0%, after the company announced that its Board of Directors is evaluating potential strategic alternatives which include a sale of the company. QUALCOMM edged 1.0% up, after the company filed a complaint against Apple, up 1.0%, stating that the latter had infringed six of its patents on the wireless technology in iPhones and iPads. Tesla added 1.4%, after the company bagged a contract in South Australia for installing the world's biggest grid-scale battery. Bucking the trend, energy firms, Noble Energy, Apache and Transocean declined 0.6%, 1.4% and 2.0%, respectively, tracking sharp losses in oil prices. The S&P 500 gained 0.6%, to settle at 2,425.2. The DJIA rose 0.4%, to settle at 21,414.3, while the NASDAQ advanced 1.0%, to close at 6,153.1.
Europe Market Snapshot
Other European markets closed mostly lower on Friday, weighed down by losses in energy sector stocks. Oil giants, Repsol, Statoil and TOTAL slipped 1.1%, 1.2% and 1.5%, respectively, on lower crude prices. Carrefour declined 4.6%, amid worries about 2017 operating profit outlook. Deutz dropped 2.7%, after Volvo, down 0.5%, stated that it had sold its 25.0% stake in the former. On the upside, German utility firms, E.ON and RWE advanced 2.6% and 3.7%, respectively. Electrolux edged 2.2% up, after the company agreed to acquire the European manufacturer of innovative and well-designed kitchen hoods, Best, with financial terms remaining undisclosed. The FTSEurofirst 300 index declined 0.1%, to close at 1,494.4. Among other European markets, the German DAX Xetra 30 rose 0.1%, to close at 12,388.7, while the French CAC-40 shed 0.1%, to settle at 5,145.2.
Asia Market Snapshot
Markets in Asia are trading higher this morning, tracking Wall Street’s gains on Friday. In Japan, marine transportation companies, Nippon Yusen KK, Kawasaki Kisen Kaisha and Mitsui OSK Lines have advanced 2.3%, 2.6% and 5.6%, respectively. Auto exporters, Mazda Motor, Toyota Motor and Honda Motor have gained 0.1%, 0.7% and 0.9%, respectively, as the Japanese Yen weakened against its US counterpart. In Hong Kong, Wanda Hotel Development has soared 94.8%, on news it was selling 76 hotels and 13 cultural and tourism projects to Sunac for about CNY63.2 billion. Orient Overseas International has rallied 19.4%, after news emerged that COSCO Shipping Holdings, up 6.1%, has offered $6.3 billion to acquire the former. In South Korea, POSCO and Samsung Electronics have gained 1.0% and 1.7%, respectively. The Nikkei 225 index is trading 0.7% higher at 20,065.1. The Hang Seng index is trading 1.0% up at 25,595.5, while the Kospi index is trading 0.3% higher at 2,386.0.
Key Corporate Announcements Today
AGMs
Aberdeen Japan Investment Trust, Capital Gearing Trust
EGMs
SerVision
Final Dividend Payment Date
3i Infrastructure, Great Portland Estates, Nasstar, Safestyle UK
Interim Dividend Payment Date
LondonMetric Property
Quarterly Payment Date
XP Power Ltd. (DI)
Key Corporate Announcements for Tomorrow
AGMs
JPMorgan Euro Small Co. Trust, LondonMetric Property, Marks & Spencer Group, Northern Investors Co, Palace Capital, Perpetual Income & Growth Inv Trust, Pets at Home Group, Shires Income, U And I Group, Young & Co's Brewery 'A' Shares, Young & Co's Brewery (Non-Voting)
Trading Announcements
Carillion, Galliford Try, Gocompare.com Group, Marks & Spencer Group, Pagegroup
Key Economic News
UK NIESR estimated GDP rose in the April-June 2017 period
On a MoM basis, NIESR estimated gross domestic product (GDP) in the UK climbed 0.30% in the April-June 2017 period. NIESR estimated GDP had recorded a rise of 0.20% in the March-May 2017 period.
UK construction output unexpectedly dropped in May
On a monthly basis, construction output in the UK unexpectedly dropped 1.20% in May, less than market expectations for an advance of 0.70%. Construction output had dropped by a revised 1.10% in the previous month.
UK manufacturing production rose less than expected in May
On an annual basis, manufacturing production climbed 0.40% in May, in the UK, less than market expectations for a rise of 1.00%. In the previous month, manufacturing production had registered a flat reading.
UK total trade deficit rose in May
Total trade deficit in the UK widened to £3.07 billion in May, following a revised total trade deficit of £2.12 billion in the prior month. Markets were expecting the nation's total trade deficit to rise to £2.50 billion.
UK Halifax house price index surprisingly eased in June
On a MoM basis, the Halifax house price index unexpectedly fell 1.00% in the UK, in June, compared to a revised advance of 0.30% in the previous month. Market expectation was for the Halifax house price index to advance 0.20%.
UK construction output unexpectedly dropped in May
On an annual basis, construction output recorded an unexpected drop of 0.30% in the UK, in May, compared to a revised drop of 0.10% in the prior month. Market anticipation was for construction output to advance 1.10%.
UK industrial production unexpectedly declined in May
On an annual basis, in the UK, industrial production unexpectedly dropped 0.20% in May, compared to a fall of 0.80% in the previous month. Market anticipation was for industrial production to climb 0.20%.
UK Halifax house price index advanced less than expected in the April-June 2017 period
In the April-June 2017 period, on a YoY basis, the Halifax house price index climbed 2.60% in the UK, compared to an advance of 3.30% in the March-May 2017 period. Market anticipation was for the Halifax house price index to rise 3.10%.
UK trade deficit expanded in May
Non-EU trade deficit in the UK rose to £3.80 billion in May, following a revised trade deficit of £2.62 billion in the previous month. Market anticipation was for the country's trade deficit to drop to £2.45 billion.
UK industrial production unexpectedly slid in May
In the UK, industrial production unexpectedly dropped 0.10% in May on a MoM basis, compared to a rise of 0.20% in the prior month. Market anticipation was for industrial production to advance 0.40%.
UK manufacturing production unexpectedly declined in May
Manufacturing production unexpectedly dropped 0.20% on a monthly basis in the UK in May, lower than market expectations for an advance of 0.50%. In the previous month, manufacturing production had climbed 0.20%.
UK visible trade deficit widened in May
In May, visible trade deficit in the UK expanded to £11.86 billion, more than market expectations of a visible trade deficit of £10.85 billion. The UK had reported a revised visible trade deficit of £10.59 billion in the prior month.
German industrial production advanced more than expected in May
In May, on a monthly basis, the seasonally adjusted industrial production in Germany registered a rise of 1.20%, more than market expectations for a rise of 0.20%. In the previous month, industrial production had risen by a revised 0.70%.
German industrial production advanced more than expected in May
On an annual basis, in Germany, the non-seasonally & working day adjusted industrial production registered a rise of 5.00% in May, compared to a revised advance of 2.80% in the previous month. Markets were anticipating industrial production to advance 4.00%.
French industrial production advanced more than expected in May
On a monthly basis in France, industrial production registered a rise of 1.90% in May, more than market expectations for an advance of 0.60%. Industrial production had recorded a revised drop of 0.60% in the previous month.
French manufacturing production advanced more than expected in May
In May, on a monthly basis, manufacturing production in France rose 2.00%, compared to a revised drop of 1.30% in the previous month. Markets were expecting manufacturing production to rise 0.60%.
French current account deficit narrowed in May
France has reported current account deficit of €2.30 billion in May, compared to a revised current account deficit of €2.60 billion in the previous month.
French budget deficit widened in May
Budget deficit in France widened to €66.40 billion in May. France had posted a budget deficit of €57.90 billion in the previous month.
French trade deficit dropped in May
In May, trade deficit in France dropped to €4.89 billion, following a revised trade deficit of €5.59 billion in the previous month. Markets were anticipating the nation to record a trade deficit of €5.10 billion.
Italian retail sales unexpectedly slid in May
The seasonally adjusted retail sales unexpectedly dropped 0.10% on a monthly basis in Italy, in May, lower than market expectations for an advance of 0.30%. In the prior month, retail sales had dropped by a revised 0.40%.
Italian retail sales advanced as expected in May
On an annual basis in Italy, the non-seasonally adjusted retail sales registered a rise of 1.00% in May, meeting market expectations. In the previous month, retail sales had recorded a revised rise of 0.80%.
Spanish calendar adjusted industrial output advanced more than expected in May
In May, on an annual basis, the calendar adjusted industrial output in Spain rose 3.00%, compared to a revised advance of 0.50% in the previous month. Market anticipation was for the calendar adjusted industrial output to climb 2.00%.
Swiss foreign currency reserves unexpectedly fell in June
Compared to a revised reading of CHF 694.20 billion in the previous month foreign currency reserves in Switzerland fell unexpectedly to a level of CHF 693.50 billion in June. Markets were expecting foreign currency reserves to advance to CHF 695.00 billion.
Swiss unemployment rate declined in June
The non-seasonally adjusted unemployment rate eased to 3.00% in June, in Switzerland, at par with market expectations. Unemployment rate had recorded a level of 3.10% in the prior month.
Swiss unemployment rate remained flat in June
The seasonally adjusted unemployment rate in Switzerland remained steady at 3.20% in June, in line with market expectations.
US underemployment rate climbed in June
In June, underemployment rate recorded a rise to 8.60% in the US. Underemployment rate had registered a level of 8.40% in the previous month.
Non-farm payrolls in the US increased in June
In the US, non-farm payrolls advanced by 222.00 K in June, compared to a revised gain of 152.00 K in the prior month. Markets were expecting non-farm payrolls to advance 178.00 K.
Private payrolls in the US rose in June
In the US, private payrolls advanced by 187.00 K in June, higher than market expectations of an advance of 170.00 K. Private payrolls had registered a revised gain of 159.00 K in the previous month.
US average weekly hours of all employees surprisingly advanced in June
Average weekly hours of all employees in the US climbed unexpectedly to 34.50 in June, compared to a reading of 34.40 in the previous month. Markets were expecting average weekly hours of all employees to remain unchanged.
US average hourly earnings of all employees advanced less than expected in June
In the US, average hourly earnings of all employees registered a rise of 0.20% in June on a monthly basis, compared to a revised rise of 0.10% in the prior month. Market anticipation was for average hourly earnings of all employees to rise 0.30%.
US average hourly earnings of all employees rose less than expected in June
In June, on an annual basis, average hourly earnings of all employees in the US advanced 2.50%, compared to a revised rise of 2.40% in the prior month. Markets were anticipating average hourly earnings of all employees to climb 2.60%.
Household employment in the US climbed in June
In the US, household employment recorded an increase of 245.00 K in June. Household employment had recorded a decline of 233.00 K in the previous month.
US unemployment rate surprisingly rose in June
In June, unemployment rate rose unexpectedly to a level of 4.40% in the US, compared to a reading of 4.30% in the previous month. Market anticipation was for unemployment rate to record a flat reading.
Manufacturing payrolls in the US rose in June
Manufacturing payrolls in the US registered a rise of 1.00 K in June, compared to market expectations of an advance of 5.00 K. Manufacturing payrolls had recorded a revised loss of 2.00 K in the prior month.
Canadian participation rate rose in June
The participation rate rose to a level of 65.90% in Canada, in June. The participation rate had recorded a level of 65.80% in the previous month.
Canadian unemployment rate surprisingly slid in June
In June, the unemployment rate recorded an unexpected drop to a level of 6.50% in Canada, lower than market expectations of an unchanged reading. In the previous month, the unemployment rate had registered a reading of 6.60%.
Part time employment in Canada rose in June
Part time employment advanced by 37.10 K in Canada, in June. Part time employment had recorded a loss of 22.30 K in the prior month.
Net number of people employed in Canada rose in June
The net number of people employed in Canada advanced by 45.30 K in June, following an advance of 54.50 K in the previous month. Markets were anticipating the net number of people employed to rise 10.00 K.
Canadian Ivey PMI rose in June
Compared to a level of 53.80 in the previous month the seasonally adjusted Ivey PMI registered a rise to 61.60 in Canada, in June. Market anticipation was for Ivey PMI to climb to a level of 58.00.
Number of full time employment in Canada rose in June
The number of full time employment rose by 8.10 K in Canada, in June. The number of full time employment had recorded an increase of 77.00 K in the previous month.
Japanese coincident index slid in May
In May, the flash coincident index in Japan recorded a drop to 115.50, at par with market expectations. In the prior month, the coincident index had registered a level of 117.10.
Japanese bank lending including trusts advanced more than expected in June
In June, bank lending including trusts climbed 3.30% on an annual basis in Japan, more than market expectations for an advance of 3.20%. In the prior month, bank lending including trusts had registered a rise of 3.20%.
Japanese leading economic index climbed in May
In May, the preliminary leading economic index in Japan rose to a level of 104.70, higher than market expectations of an advance to a level of 104.50. In the prior month, the leading economic index had recorded a level of 104.20.
Japanese bank lending ex-trust advanced as expected in June
In June, on a YoY basis, bank lending ex-trust rose 3.30% in Japan, in line with market expectations. Bank lending ex-trust had registered a similar rise in the prior month.
Chinese CPI advanced less than expected in June
In China, the consumer price index (CPI) recorded a rise of 1.50% on a YoY basis in June, lower than market expectations for an advance of 1.60%. In the previous month, the CPI had registered a similar rise.
Chinese PPI advanced as expected in June
In China, the producer price index (PPI) registered a rise of 5.50% in June, on an annual basis, in line with market expectations. In the prior month, the PPI had registered a similar rise.