UK Market Snapshot
UK markets closed in positive territory yesterday, with blue-chip stocks recording gains as the Pound weakened against its counterparts following the “Super Thursday” session where the Bank of England (BoE) kept its benchmark interest rate unchanged and lowered its forecasts for UK’s GDP and wage growth. Next surged 9.7%, after the retailer reported a rise in its sales for the second quarter and lifted its lower end of the full year sales outlook. Randgold Resources climbed 3.4%, after the miner posted strong results for the second quarter. London Stock Exchange Group gained 3.0%, after it reported an increase in its net profit for the first half of the year and raised its interim dividend by 20.0%. On the flipside, ConvaTec Group tumbled 6.4%, following a decline in its half-yearly operating profit and it also announced that its CFO, Nigel Clerkin, would step down from his role in October. The FTSE 100 advanced 0.9%, to close at 7,474.8, while the FTSE 250 rose 0.3%, to settle at 19,908.2.
US Market Snapshot
US markets ended mostly lower yesterday, weighed down by losses in energy sector shares. Meanwhile, the DJIA index ended at its record high level for the seventh consecutive session. Energy firms, Apache and Concho Resources plunged 8.0% and 8.7%, respectively, on lower crude oil prices. Teva Pharmaceutical Industries sank 24.0%, after the company’s profit for the second quarter trailed market estimates and it trimmed its adjusted earnings per share guidance for the full year. AmerisourceBergen plummeted 10.5%, after the company reported lower than expected revenue for the third quarter due to lower prices for generic drugs. Bucking the trend, Fitbit rallied 15.2%, after the company posted robust earnings for the second quarter and announced that its smartwatch would be available during the holiday season. The S&P 500 slipped 0.2%, to settle at 2,472.2. The DJIA marginally rose to settle at 22,026.1, while the NASDAQ slid 0.4%, to close at 6,340.3.
Europe Market Snapshot
Other European markets ended mostly higher yesterday, amid upbeat earnings results and encouraging regional data. UniCredit surged 7.2%, after the lender reported a rise in its net profit for the second quarter, helped by higher fees and commissions along with lower provisions for bad loans. Bayerische Motoren Werke edged 0.7% up, after the carmaker posted higher than expected profit for the second quarter, led by demand for its new 5-series sedan. On the losing side, Neste tumbled 5.1%, after the company’s operating profit for the first half missed analysts’ estimates. Siemens dropped 3.1%, after the company reported weaker than expected revenue for the third quarter and announced plans to float its healthcare unit in the first half of 2018. The FTSEurofirst 300 index gained 0.1%, to close at 1,489.5. Among other European markets, the German DAX Xetra 30 slid 0.2%, to close at 12,154.7, while the French CAC-40 advanced 0.5%, to settle at 5,130.5.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning. In Japan, Kirin Holdings has declined 4.5%, after the company boosted its operating profit for the full year that fell short of market expectations. On the contrary, Suzuki Motor has surged 7.4%, after the automaker posted higher than expected operating profit for the first quarter, helped by strong sales in India. Toyota Motor and Mazda Motor have gained 0.1% and 3.9%, respectively, ahead of their plans to build the US assembly plant worth around $1.6 billion as a part of their new joint venture, set to be announced today. In Hong Kong, brokers, CITIC Securities and Haitong Securities have risen 0.7% and 0.8%, respectively. In South Korea, carmakers, Hyundai Motor and Kia Motors have advanced 1.4% and 1.8%, respectively. The Nikkei 225 index is trading 0.4% lower at 19,956.6. The Hang Seng index is trading marginally up at 27,531.2, while the Kospi index is trading 0.1% higher at 2,390.3.
Key Corporate Announcements Today
AGMs
APQ Global Limited, Bilby, Bluerock Diamonds, Obtala Limited
Final Dividend Payment Date
Aquila Services Group, Aveva Group, B&M European Value Retail S.A. (DI), Bonmarche Holdings, Brown (N.) Group, Burberry Group, Caffyns, Intermediate Capital Group, Monks Inv Trust, Next Fifteen Communications, Octopus AIM VCT, Talktalk Telecom Group, ULS Technology, United Utilities Group, Vodafone Group, Wincanton
Interim Dividend Payment Date
Autins Group, Banco Santander S.A., CC Japan Income & Growth Trust, Chrysalis VCT, Frenkel Topping Group, Game Digital, Heavitree Brewery, Heavitree Brewery 'A' Shares, ICG-Longbow Senior Secured UK Property Debt Investments Ltd, NewRiver REIT, North American Income Trust (The)
Special Dividend Payment Date
Chrysalis VCT, F & C UK High Income Trust, NewRiver REIT
Quarterly Payment Date
British Land Company, F & C UK High Income Trust
Trading Announcements
S&U
Key Corporate Announcements for Monday
AGMs
Akers Biosciences, Inc., Tanfield Group
EGMs
PJSC Megafon GDR (Reg S)
Final Dividend Payment Date
CML Microsystems, Puma Vct 11, Workspace Group
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.19% or $0.10 lower at $51.91 per barrel, ahead of weekly US oil rig count data, scheduled to be released later today. Yesterday, the contract declined 0.67% or $0.35, to settle at $52.01 per barrel, after news emerged that oil trader, Andy Hall, would shut down his energy-focused hedge fund, Astenbeck Capital Management as it incurred a huge loss in 2017 and amid prevailing turmoil in Venezuela.
At 0330GMT today, Gold futures contract is trading 0.47% or $6.00 higher at $1273.80 per ounce. Yesterday, the contract declined 0.31% or $4.00, to settle at $1267.80 per ounce, extending its previous session losses, ahead of the release of crucial US non-farm payrolls report for July.
Currency
At 0330GMT today, the EUR is trading 0.06% higher against the USD at $1.1877, ahead of Germany’s factory orders data for June, set to release in sometime. Moreover, today’s US nonfarm payrolls report and unemployment rate data, both for July would also be on investor’s radar. Yesterday, the EUR strengthened 0.12% versus the USD, to close at $1.1870, after the Euro-zone’s retail sales rose more than expected in June. Meanwhile, the composite PMI surprisingly fell across the Euro-area in July. In other economic news, the US ISM non-manufacturing PMI declined more than anticipated in July, while initial jobless claims fell more than expected for the week ended 28 July 2017.
At 0330GMT today, the GBP is trading marginally lower against the USD at $1.3137. Yesterday, the GBP weakened 0.64% versus the USD, to close at $1.3138, after the BoE kept the interest rate steady and trimmed its outlook for UK wages and economic growth. Meanwhile, the UK services PMI advanced more than expected in July.
Bitcoin
At 0330GMT today, BTC is trading 0.18% lower against the USD at $2784.88. Yesterday, BTC advanced 3.33% against the USD to close at $2789.97. Meanwhile, GDAX, the cryptocurrency exchange operated by Coinbase, extended its support for Bitcoin Cash and stated that it would enable Bitcoin Cash withdrawals by 01 January 2018.
Key Economic News
BoE held benchmark interest rate steady, slashed growth forecast
The Bank of England’s (BoE) monetary policy committee voted 6-2 to hold the key interest rate steady at 0.25%. The central bank also left unchanged the size of its asset purchase programme at £435.00 billion and its corporate-bond purchase programme at £10.00 billion. The BoE Governor, Mark Carney, reiterated that uncertainty about Brexit will weigh on growth in the coming years and the central bank expects the UK economy to grow by 1.70% in 2017 and 1.60% next year, down from 1.90% and 1.70%, respectively, as per its last inflation report in May. Inflation is expected to peak at around 3.00% by October 2017, before gradually moderating, and falling to 2.20% by 2020.
UK services PMI advanced in July
In July, the services PMI registered a rise to 53.80 in the UK, higher than market expectations of a rise to 53.60. The services PMI had registered a level of 53.40 in the previous month.
UK official reserves rose in July
In July, official reserves advanced $1273.00 million in the UK. Official reserves had registered a rise of $491.00 million in the prior month.
Euro-zone composite PMI fell in July
In the Euro-zone, the final composite PMI eased to 55.70 in July, compared to a level of 56.30 in the prior month. The preliminary figures had recorded a fall to 55.80. Markets were anticipating composite PMI to fall to a level of 55.80.
Euro-zone retail sales rose more than expected in June
In June, the seasonally adjusted retail sales in the Euro-zone climbed 3.10% on a YoY basis, more than market expectations for an advance of 2.50%. Retail sales had registered a revised rise of 2.40% in the previous month.
Euro-zone retail sales unexpectedly advanced in June
In June, on a monthly basis, the seasonally adjusted retail sales unexpectedly advanced 0.50% in the Euro-zone, compared to a rise of 0.40% in the previous month. Market anticipation was for retail sales to record an unchanged reading.
Euro-zone services PMI steadied in July
In July, the final services PMI in the Euro-zone remained steady at 55.40, meeting market expectations. The preliminary figures had also indicated a flat reading.
German services PMI dropped in July
The final services PMI eased to 53.10 in Germany, in July, compared to a reading of 54.00 in the previous month. Market expectation was for services PMI to ease to a level of 53.50. The preliminary figures had indicated a fall to 53.50.
French services PMI declined in July
The final services PMI in France dropped to 56.00 in July, compared to market expectations of a fall to a level of 55.90. The preliminary figures had indicated a fall to 55.90. In the previous month, services PMI had recorded a reading of 56.90.
Italian services PMI rose in July
The services PMI in Italy advanced to 56.30 in July, compared to a reading of 53.60 in the previous month. Market expectation was for the services PMI to climb to a level of 54.10.
Spanish services PMI surprisingly fell in July
In July, the services PMI recorded an unexpected drop to 57.60 in Spain, compared to market expectations of a rise to 58.50. The services PMI had registered a level of 58.30 in the previous month.
US non-defence capital goods shipments (ex aircraft) advanced in June
In June, on a MoM basis, the final non-defence capital goods shipments (ex aircraft) in the US climbed 0.10%. The non-defence capital goods shipments (ex aircraft) had advanced by a revised 0.40% in the previous month. The preliminary figures had indicated a rise of 0.20%.
US non-manufacturing PMI dropped in July
The non-manufacturing PMI registered a drop to 53.90 in the US, in July, lower than market expectations of a fall to 56.90. The non-manufacturing PMI had recorded a reading of 57.40 in the previous month.
US non-defence capital goods orders (ex aircraft) remained unchanged in June
The final non-defence capital goods orders (ex aircraft) remained flat on a monthly basis in the US, in June. The non-defence capital goods orders (ex aircraft) had climbed by a revised 0.70% in the prior month. The preliminary figures had recorded a drop of 0.10%.
US initial jobless claims declined in the last week
The seasonally adjusted initial jobless claims recorded a drop to 240.00 K in the week ended 29 July 2017, in the US, lower than market expectations of a fall to a level of 243.00 K. In the prior week, initial jobless claims had recorded a revised reading of 245.00 K.
US Markit composite PMI advanced in July
In the US, the final Markit composite PMI recorded a rise to 54.60 in July, compared to a revised level of 53.90 in the prior month. The preliminary figures had recorded an advance to 54.20.
US durable goods orders rose in June
The final durable goods orders in the US climbed 6.40% in June, on a monthly basis. In the prior month, durable goods orders had fallen by a revised 0.10%. The preliminary figures had indicated an advance of 6.50%.
US factory orders advanced as expected in June
In June, factory orders in the US recorded a rise of 3.00% on a MoM basis, at par with market expectations. In the previous month, factory orders had recorded a revised drop of 0.30%.
US durable goods orders (ex transportation) rose in June
The final durable goods orders (ex transportation) in the US recorded a rise of 0.10% on a MoM basis, in June. Durable goods orders (ex transportation) had advanced by a revised 0.60% in the prior month. The preliminary figures had indicated an advance of 0.20%.
US Markit services PMI unexpectedly climbed in July
In July, the final Markit services PMI in the US registered an unexpected rise to 54.70, compared to a reading of 54.20 in the previous month. Markets were expecting Markit services PMI to remain unchanged. The preliminary figures had indicated a steady reading.
US continuing jobless claims surprisingly advanced in the last week
The seasonally adjusted continuing jobless claims registered an unexpected rise to a level of 1968.00 K in the week ended 22 July 2017, in the US, compared to a revised level of 1965.00 K in the previous week. Market anticipation was for continuing jobless claims to fall to a level of 1958.00 K.
US number of planned layoffs by US companies fell in July
The number of planned layoffs by US companies dropped 37.60% on a YoY basis in the US, in July. The number of planned layoffs by US companies had dropped 19.30% in the previous month.
US number of planned layoffs by US companies dropped in July
The number of planned layoffs by US companies registered a drop to 28.30 K in the US, in July. The number of planned layoffs by US companies had recorded a reading of 31.10 K in the prior month.
Japanese labour cash earnings unexpectedly slid in June
On a YoY basis, labour cash earnings unexpectedly dropped 0.40% in Japan, in June, less than market expectations for a rise of 0.50%. Labour cash earnings had risen 0.70% in the prior month.