UK Market Snapshot
UK markets finished higher yesterday, with the FTSE 100 index closing at its highest level since 02 June, bolstered by a rally in mining sector stocks. BHP Billiton, Rio Tinto and Anglo American climbed 2.3%, 2.6% and 3.1%, respectively, on higher iron ore prices. Energy giants, Royal Dutch Shell and BP advanced 0.7% and 1.1%, respectively. On the losing side, Paddy Power Betfair declined 4.7%, after the company announced that its CEO, Breon Corcoran, would step down from his role to be succeeded by former Worldpay CEO, Peter Jackson. Retailers, Kingfisher, Marks & Spencer Group, J Sainsbury and Next slipped 0.5%, 0.6%, 1.0% and 1.4%, respectively, after a report indicated that consumer spending dropped for a third consecutive month in July. The FTSE 100 advanced 0.3% to close at 7,531.9, while the FTSE 250 rose 0.1%, to settle at 19,988.5.
US Market Snapshot
US markets closed stronger yesterday, with the DJIA index closing at a record high level for the ninth session in a row and the S&P 500 index ending at its highest level, boosted by gains in consumer staples and technology sector shares. Semiconductor makers, NVIDIA, Lam Research and ON Semiconductor climbed 3.1%, 3.9% and 8.2%, respectively. NxStage Medical rallied 28.2%, after Fresenius Medical Care announced that it would acquire the company for about $2.0 billion in order to enhance its kidney dialysis business. Rockwell Collins surged 6.8%, after a media report indicated that United Technologies, down 2.4%, was considering buying the company. Tyson Foods jumped 5.7%, after the company posted upbeat results for the third quarter. The S&P 500 gained 0.2%, to settle at 2,480.9. The DJIA rose 0.1%, to settle at 22,118.4, while the NASDAQ advanced 0.5%, to close at 6,383.8.
Europe Market Snapshot
Other European markets ended mostly lower yesterday after economic data showed that Germany’s industrial production unexpectedly fell in June, recording its first monthly decline since last December. QSC tumbled 6.3%, after the telecom provider posted a drop in its revenue for the second quarter. PostNL declined 5.1%, after the parcel delivery company indicated that its full year income would come in at the lower end of its outlook due to the regulatory changes. Bucking the trend, thyssenkrupp and ArcelorMittal climbed 1.2% and 4.7%, respectively, tracking gains in iron ore prices. Banco BPM advanced 2.5%, after the lender agreed to sell its asset management business, Aletti Gestielle SGR, to Anima Holding, down 1.9%, for about $1.3 billion. The FTSEurofirst 300 index declined 0.1%, to close at 1,502.4. Among other European markets, the German DAX Xetra 30 slid 0.3%, to close at 12,257.2, while the French CAC-40 advanced 0.1%, to settle at 5,207.9.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning, following disappointing Chinese trade data for July. In Japan, insurers, MS&AD Insurance Group Holdings and T&D Holdings have slipped 0.6% and 1.3%, respectively. On the flipside, Japan Steel Works has rallied 17.8%, after the company lifted its projected operating profit for the year ending March 2018. GS Yuasa has surged 8.5%, after report stated that it would start mass-producing a new lithium-ion battery as early as in 2020. In Hong Kong, Geely Automobile Holdings has climbed 4.5%, after the company reported that it shifted more than 91,000 vehicles during July. In South Korea, Hyundai Motor has declined 2.4%, after its labour union undertook a partial strike. Peer, Kia Motors dropped 4.1%. The Nikkei 225 index is trading 0.3% lower at 19,992.2. The Hang Seng index is trading 0.1% up at 27,705.8, while the Kospi index is trading 0.1% down at 2,396.5.
Key Corporate Announcements Today
AGMs
Frutarom Industries Ltd GDR (Reg S), Tata Steel Ltd GDR (Reg S)
Final Dividend Payment Date
VP
Quarterly Payment Date
JPMorgan Asian Investment Trust
Trading Announcements
Bellway, Clarke (T.), Pets at Home Group
Key Corporate Announcements for Tomorrow
AGMs
Majestic Wine, Mountview Estates, Zamano
Final Dividend Payment Date
Anglo Pacific Group, Ventus 2 VCT, Ventus VCT
Quarterly Ex-Dividend Date
IBM Corp.
Trading Announcements
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.38% or $0.20 lower at $52.17 per barrel, ahead of the American Petroleum Institute’s weekly oil inventory data, scheduled to be released later today. Yesterday, the contract declined 0.10% or $0.05, to settle at $52.37 per barrel, amid rising concerns that major crude producers would waver their commitment to curb oil output in the OPEC’s compliance meeting. Also, a rebound in production at Libya’s largest oil field weighed on oil prices.
At 0330GMT today, Gold futures contract is trading 0.60% or $7.60 higher at $1265.80 per ounce, as the US Dollar weakened against its major peers. Yesterday, the contract declined marginally or $0.10, to settle at $1258.20 per ounce, amid gains in US equity markets.
Currency
At 0330GMT today, the EUR is trading 0.13% higher against the USD at $1.1810, ahead of Germany’s trade balance data for June, slated to release in a few hours. Yesterday, the EUR strengthened 0.19% versus the USD, to close at $1.1795. In economic news, the Euro-zone’s Sentix investor confidence dropped to its lowest level in three months in August and Germany’s industrial production unexpectedly declined on a monthly basis in June.
At 0330GMT today, the GBP is trading 0.08% higher against the USD at $1.3046. Yesterday, the GBP marginally weakened versus the USD, to close at $1.3035. Meanwhile, UK’s annual house price growth slowed to its lowest pace in four years in July. Meanwhile, the nation’s BRC like-for-like retail sales across all sectors rose as expected in July.
Bitcoin
At 0330GMT today, BTC is trading 1.25% higher the USD at $3440.00, breaching the psychologically important 3,400 mark for the first time. The cryptocurrency is now worth nearly three times than the precious metal, Gold. Yesterday, BTC advanced 5.19% against the USD to close at $3397.62, just shy of 3,400 level, amid rising optimism amongst investors over the future of digital currencies. Meanwhile, a legislation outlining the regulatory framework for digital currencies including Bitcoin has been introduced by South Korean lawmaker, Park Yong-jin.
Key Economic News
UK Halifax house price index advanced more than expected in July
The Halifax house price index in the UK registered a rise of 0.40% on a monthly basis in July, more than market expectations for a rise of 0.30%. The Halifax house price index had fallen by a revised 0.90% in the prior month.
UK retail sales across all sectors advanced as expected in July
In July, retail sales across all sectors in the UK registered a rise of 0.90% on an annual basis, compared to an advance of 1.20% in the previous month. Market anticipation was for retail sales across all sectors to rise 0.90%.
UK Halifax house price index rose as expected in the May-July 2017 period
In the May-July 2017 period, on a YoY basis, the Halifax house price index in the UK registered a rise of 2.10%, in line with market expectations. In the April-June 2017 period, the Halifax house price index had risen 2.60%.
Euro-zone investor confidence index eased in August
In August, the investor confidence index eased to 27.70 in the Euro-zone, compared to market expectations of a fall to 27.60. The investor confidence index had recorded a level of 28.30 in the previous month.
German industrial production advanced less than expected in June
The non-seasonally & working day adjusted industrial production registered a rise of 2.40% in Germany on a YoY basis in June, compared to a revised advance of 4.80% in the previous month. Markets were expecting industrial production to rise 3.70%.
German industrial production surprisingly eased in June
On a MoM basis, in June, the seasonally adjusted industrial production unexpectedly fell 1.10% in Germany, compared to an advance of 1.20% in the previous month. Market anticipation was for industrial production to climb 0.20%.
Swiss foreign currency reserves climbed in July
In Switzerland, foreign currency reserves registered a rise to CHF 714.30 billion in July. In the previous month, foreign currency reserves had registered a revised reading of CHF 693.70 billion.
Swiss EU HICP rose in July
The EU harmonised consumer price index (HICP) in Switzerland recorded a rise of 0.10% on a monthly basis, in July. In the previous month, the EU HICP had registered an unchanged reading.
Swiss CPI advanced as expected in July
The consumer price index (CPI) in Switzerland rose 0.30% in July on an annual basis, meeting market expectations. In the previous month, the CPI had registered a rise of 0.20%.
Swiss CPI fell as expected in July
On a monthly basis, the CPI in Switzerland fell 0.30% in July, in line with market expectations. In the previous month, the CPI had registered a drop of 0.10%.
Swiss EU HICP advanced in July
The EU HICP rose 0.60% in Switzerland on an annual basis, in July. The EU HICP had climbed 0.40% in the previous month.
Fed’s Bullard argued for leaving rates on hold due to weak inflation
St. Louis Fed President, James Bullard stated that the central bank can leave interest rates where they are for now, as inflation is not likely to rise much even if the US job market continues to improve.
US consumer credit advanced less than expected in June
Consumer credit recorded a rise of $12.40 billion in the US, in June, lower than market expectations for an advance of $15.75 billion. Consumer credit had registered a revised rise of $18.29 billion in the previous month.
Japanese bank lending ex-trust rose more than expected in July
In July, on an annual basis, bank lending ex-trust climbed 3.40% in Japan, compared to a rise of 3.30% in the prior month. Market expectation was for bank lending ex-trust to advance 3.30%.
Japanese bank lending including trusts rose in July
Bank lending including trusts registered a rise of 3.30% in Japan on an annual basis, in July. Bank lending including trusts had registered a similar rise in the prior month.
Japanese adjusted (total) current account surplus widened in June
Adjusted (total) current account surplus in Japan expanded to ¥1522.50 billion in June, following a adjusted (total) current account surplus of ¥1400.90 billion in the previous month. Markets were anticipating the country's adjusted (total) current account surplus to rise to ¥1502.90 billion.
Japanese coincident index rose in June
In Japan, the flash coincident index rose to a level of 117.20 in June, compared to a reading of 115.80 in the previous month. Market anticipation was for the coincident index to climb to a level of 117.20.
Japanese leading economic index advanced in June
In June, the flash leading economic index advanced to 106.30 in Japan, compared to market expectations of a rise to a level of 106.20. In the prior month, the leading economic index had registered a reading of 104.60.
Japanese current account surplus fell in June
Japan has registered the non-seasonally adjusted current account surplus of ¥934.60 billion in June, from a current account surplus of ¥1653.90 billion in the prior month. Market anticipation was for the nation to post a current account surplus of ¥860.50 billion.
Japan posted (BOP basis) trade surplus in June
In June, (BOP basis) trade surplus in Japan recorded a level of ¥518.50 billion, less than market expectations of a (BOP basis) trade surplus of ¥571.50 billion. Japan had registered a (BOP basis) trade deficit of ¥115.10 billion in the prior month.
Chinese exports rose less than expected in July
Exports in China recorded a rise of 7.20% in July on an annual basis, compared to an advance of 11.30% in the previous month. Market anticipation was for exports to rise 11.00%.
Chinese foreign exchange reserves climbed in July
Foreign exchange reserves in China rose to a level of $3080.70 billion in July, compared to a reading of $3056.80 billion in the previous month. Market expectation was for foreign exchange reserves to rise to a level of $3074.90 billion.
Chinese trade surplus widened in July
In July, trade surplus in China widened to $46.74 billion, from a revised trade surplus of $42.75 billion in the prior month. Market expectation was for the nation's trade surplus to expand to $45.00 billion.
Chinese imports rose less than expected in July
Imports rose 11.00% in China on an annual basis in July, compared to an advance of 17.20% in the prior month. Markets were expecting imports to climb 18.00%.