UK Market Snapshot
UK markets closed mixed yesterday, with the FTSE 100 index closing on a stronger footing as the Pound weakened against the US Dollar. Pets at Home Group jumped 5.7%, after the company posted an increase in its revenue for the first quarter, helped by solid demand. On the flipside, InterContinental Hotels Group declined 4.0%, after the company reported a slower growth in revenue per available room in the second quarter. However, it posted a rise in its pretax profit in the first half of the year and lifted its interim dividend. Standard Life shed 0.3%, after the insurer reported a sharp drop in its pretax profit for the first half due to falling revenue and lower investment returns. The FTSE 100 advanced 0.1%, to close at 7,542.7, while the FTSE 250 fell 0.2%, to settle at 19,949.5.
US Market Snapshot
US markets closed lower yesterday, with the DJIA index snapping a 10-day winning streak, amid rising geopolitical tensions after the US President, Donald Trump, vowed to respond aggressively to any threats from North Korea. Dean Foods sank 20.8%, after the company posted lower than expected earnings for the second quarter. Avis Budget Group plunged 9.9%, after the company’s earnings and sales for the second quarter missed market estimates and it reduced its profit guidance for the year. Marriott International declined 2.1%, after the hotelier provided a disappointing profit outlook for the third quarter. Bucking the trend, Michael Kors Holdings rallied 21.5%, after the company posted upbeat results for the first quarter and offered a robust outlook for the full year. The S&P 500 slipped 0.2%, to settle at 2,474.9. The DJIA shed 0.1%, to settle at 22,085.3, while the NASDAQ slid 0.2%, to close at 6,370.5.
Europe Market Snapshot
Other European markets ended in positive territory yesterday, as gains in utility and auto sector stocks outweighed disappointing trade data from Germany for June. German utility firms, RWE and E.ON gained 1.4% and 1.9%, respectively. Nokian Renkaat jumped 6.6%, after the company posted higher than expected profit for the second quarter on the back of improved demand in Russia and lifted its financial outlook for this year. On the losing side, Pandora plunged 13.7%, after it reported downbeat results for the second quarter. The jewellery maker announced that it would acquire distribution rights for its jewellery in Spain, Gibraltar and Andorra for €110.0 million and would continue opening more stores. The FTSEurofirst 300 index gained 0.2%, to close at 1,505.1. Among other European markets, the German DAX Xetra 30 rose 0.3%, to close at 12,292.1, while the French CAC-40 advanced 0.2%, to settle at 5,218.9.
Asia Market Snapshot
Markets in Asia are trading lower this morning, amid escalating geopolitical tensions on the Korean peninsula. In Japan, Olympus has tumbled 5.3%, after the company reported a fall in its operating profit for the April-June quarter due to weak demand for medical equipment. Yahoo Japan and Sumitomo Mitsui Financial Group have slipped 0.8% and 1.4%, respectively. News emerged that the two companies will form a ¥300.0 million joint venture for big data. In Hong Kong, Swire Properties and China Vanke have fallen 0.7% and 1.5%, respectively. On the contrary, Esprit Holdings has jumped 6.8%, after the company offered a stronger earnings outlook for the year ended 30 June. In South Korea, Samsung Electronics and SK Hynix have declined 2.4% and 2.6%, respectively. The Nikkei 225 index is trading 1.3% lower at 19,739.9. The Hang Seng index is trading 0.7% down at 27,657.4, while the Kospi index is trading 0.9% lower at 2,373.8.
Key Corporate Announcements Today
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
Key Corporate Announcements for Tomorrow
AGMs
Blue Planet Investment Trust, Creightons, Invesco Asia Trust, Investec, Terra Capital
Final Ex-Dividend Date
BT Group, Calculus VCT, Diageo, Greene King, Iomart Group, Maven Income And Growth VCT 6, New Century AIM VCT, Northern Bear, Northgate, PZ Cussons, RPC Group, Triad Group, Yu Group
Final Dividend Payment Date
Avation, Impellam Group
Interim Ex-Dividend Date
Amino Technologies, Anglo American, AstraZeneca, Avon Rubber, Barclays, CVC Credit Partners European Opportunities Ltd EURO, CVC Credit Partners European Opportunities Ltd GBP, Direct Line Insurance Group, Drum Income Plus Reit, Ediston Property Investment Company, European Assets Trust, F&C Commercial Property Trust Ltd., Ferrexpo, Fevertree Drinks, Foresight Solar Fund LIMIted, Fresnillo, GCP Infrastructure Investments Ltd, GKN, Greencoat UK Wind, Hiscox Limited (DI), IMI, Impact Healthcare Reit, Informa, Keller Group, Lancashire Holdings Limited, Law Debenture Corp., Lloyds Banking Group, LSL Property Services, McColl's Retail Group, Rentokil Initial, Rio Tinto, RM, Schroder Real Estate Investment Trust Ltd, Spirent Communications, St. Modwen Properties, UK Commercial Property Trust, Vesuvius, Virgin Money Holdings (UK)
Interim Dividend Payment Date
Tritax Big Box Reit
Special Ex-Dividend Payment Date
Income & Growth VCT, Northern Bear
Quarterly Ex-Dividend Date
BP, GlaxoSmithKline, Picton Property Income Ltd, Royal Dutch Shell 'A', Royal Dutch Shell 'B'
Trading Announcements
DFS Furniture
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.44% or $0.23 lower at $51.91 per barrel, ahead of the Energy Information Administration’s weekly oil inventory data, scheduled to be released later today. Yesterday, the contract declined 0.44% or $0.23, to settle at $52.14 per barrel, after reports indicated that OPEC’s oil exports rose in July following a recovery in Libya’s oil output and higher production in Nigeria. Meanwhile, the American Petroleum Institute reported that US crude stockpiles declined by 7.8 million barrels for the week ended 04 August 2017. In other news, Saudi state oil company Aramco announced that it would cut crude oil allocations to its customers around the globe in September by at least 520,000 barrels per day.
At 0330GMT today, Gold futures contract is trading 1.12% or $14.10 higher at $1270.50 per ounce, amid mounting tensions between the US and North Korea after the latter threatened to strike the US Pacific territory of Guam. Yesterday, the contract declined 0.14% or $1.80, to settle at $1256.40 per ounce, after the US Dollar strengthened against most of its major peers, supported by upbeat US JOLTS job openings data for June.
Currency
At 0330GMT today, the EUR is trading 0.15% lower against the USD at $1.1734. Yesterday, the EUR weakened 0.36% versus the USD, to close at $1.1752, after Germany’s exports and imports fell in June.
At 0330GMT today, the GBP is trading 0.08% lower against the USD at $1.2981, ahead of UK’s inflation report hearings, scheduled to be released today. Additionally, market participants will monitor the preliminary data on the US unit labour costs and nonfarm productivity, both for the second quarter, slated to release later today. Yesterday, the GBP declined 0.33% versus the USD, to close at $1.2992, extending its previous three sessions losses. In other news, the US JOLTS job openings surged to its record high level in June.
Bitcoin
At 0330GMT today, BTC is trading 0.97% lower against the USD at $3389.69. News emerged that Fidelity Labs and Coinbase are formally entering into a partnership in order to provide the former’s customers the ability to track their Bitcoin and other cryptocurrency investments alongside more traditional assets. Yesterday, BTC advanced 0.78% against the USD to close at $3422.96. Meanwhile, reports stated that Australian Senators have asked the Reserve Bank of Australia to support Bitcoin as an official currency.
Key Economic News
German imports surprisingly eased in June
On a monthly basis in June, the seasonally adjusted imports registered an unexpected drop of 4.50% in Germany, lower than market expectations for an advance of 0.20%. Imports had recorded a revised rise of 1.30% in the previous month.
German exports unexpectedly slid in June
In June, on a MoM basis, the seasonally adjusted exports unexpectedly dropped 2.80% in Germany, lower than market expectations for a rise of 0.20%. In the previous month, exports had climbed by a revised 1.50%.
German current account surplus widened in June
The non-seasonally adjusted current account surplus in Germany widened to €23.60 billion in June, from a revised current account surplus of €16.00 billion in the previous month. Markets were expecting the country's current account surplus to widen to €24.50 billion.
German trade surplus expanded in June
The seasonally adjusted trade surplus in Germany widened to €22.30 billion in June, from a trade surplus of €22.00 billion in the previous month. Markets were anticipating the nation to post a trade surplus of €23.00 billion.
French current account deficit widened in June
Current account deficit in France expanded to €2.10 billion in June, compared to a revised current account deficit of €1.90 billion in the previous month.
French budget deficit fell in June
Budget deficit in France dropped to €62.30 billion in June, compared to a budget deficit of €66.40 billion in the previous month.
French trade deficit rose in June
In June, trade deficit in France rose to €4.66 billion, from a revised trade deficit of €4.43 billion in the previous month. Market anticipation was for the country's trade deficit to widen to €5.05 billion.
Swiss unemployment rate remained unchanged in July
In July, the non-seasonally adjusted unemployment rate remained steady at 3.00% in Switzerland, meeting market expectations.
Swiss UBS real estate bubble index remained steady in 2Q 2017
The UBS real estate bubble index in Switzerland remained flat at 1.38 in 2Q 2017.
Swiss unemployment rate steadied in July
In July, the seasonally adjusted unemployment rate remained steady at a level of 3.20% in Switzerland, in line with market expectations.
US JOLTs job openings advanced in June
In June, JOLTs job openings rose to a level of 6163.00 K in the US, higher than market expectations of a rise to 5750.00 K. JOLTs job openings had registered a revised level of 5702.00 K in the previous month.
US small business optimism index unexpectedly rose in July
The small business optimism index advanced unexpectedly to 105.20 in the US, in July, higher than market expectations of a drop to 103.50. In the prior month, the small business optimism index had recorded a level of 103.60.
US Redbook index slid in the last week
The seasonally adjusted Redbook index in the US fell 0.30% on a monthly basis, in the week ended 04 August 2017. In the prior week, the Redbook index had fallen 1.20%.
US Redbook index rose in the last week
The Redbook index registered a rise of 2.70% in the US on an annual basis, in the week ended 04 August 2017. The Redbook index had recorded a rise of 2.80% in the prior week.
Japanese Eco Watchers Survey for future outlook surprisingly declined in July
Eco Watchers Survey for the future outlook registered an unexpected drop to a level of 50.30 in July, in Japan, compared to market expectations of an advance to a level of 51.00. In the prior month, Eco Watchers Survey for the future outlook had registered a level of 50.50.
Japanese M3 money supply advanced more than expected in July
On a YoY basis in July, M3 money supply rose 3.40% in Japan, more than market expectations for a rise of 3.30%. M3 money supply had climbed 3.30% in the prior month.
Japanese corporate bankruptcies climbed in July
In July, on an annual basis, corporate bankruptcies rose 0.28% in Japan. Corporate bankruptcies had dropped 7.47% in the prior month.
Japanese Eco Watchers Survey for current situation surprisingly dropped in July
Eco Watchers Survey for the current situation fell unexpectedly to a level of 49.70 in Japan, in July, lower than market expectations of a rise to 50.20. In the prior month, Eco Watchers Survey for the current situation had recorded a reading of 50.00.
Japanese money supply M2+CD rose more than expected in July
In July, money supply M2+CD rose 4.00% on an annual basis in Japan, compared to an advance of 3.90% in the prior month. Market expectation was for money supply M2+CD to rise 3.90%.
Chinese CPI rose in July
On a monthly basis, the consumer price index (CPI) in China registered a rise of 0.10% in July. In the prior month, the CPI had fallen 0.20%.
Chinese PPI advanced less than expected in July
In July, the producer price index (PPI) rose 5.50% in China on a YoY basis, lower than market expectations for a rise of 5.60%. In the prior month, the PPI had registered a similar rise.
Chinese CPI rose less than expected in July
In China, the CPI climbed 1.40% in July on a YoY basis, lower than market expectations for an advance of 1.50%. The CPI had recorded a rise of 1.50% in the previous month.