UK Market Snapshot
UK markets finished in positive territory yesterday, buoyed by a rally in retail sector stocks. Tesco, Wm Morrison Supermarkets and Marks & Spencer Group climbed 1.0%, 2.0% and 3.5%, respectively, after a report indicated that the food retail industry’s sales posted a rise for the 12 weeks ended 10 September. International Consolidated Airlines Group advanced 2.6%, following a media report that the company had joined the list of bidders for insolvent Air Berlin. Bucking the trend, Ocado Group declined 2.0%, after the company warned that there would be a spike in costs as it is investing in its new distribution centres. Also, the company reported an increase in its revenue for the third quarter helped by a growth in average orders per week. The FTSE 100 advanced 0.3%, to close at 7,275.3, while the FTSE 250 rose 0.5%, to settle at 19,535.5.
US Market Snapshot
US markets finished higher yesterday, with the trifecta of indices closing at their new record high levels, following gains in telecom and financial sector stocks. T-Mobile and Sprint jumped 5.9% and 6.8%, respectively, after a report stated that the two companies are in active stock-for-stock merger talks where the former’s parent firm, Deutsche Telekom, would emerge as the majority owner. Michael Kors Holdings climbed 3.4%, after a leading broker upgraded its rating on the stock to ‘Outperform’ from ‘Market Perform’. Valero Energy rose 0.7%, after the company decided to terminate its deal to acquire two California distribution terminals from Plains All American Pipeline due to interference from the state’s attorney general. The S&P 500 gained 0.1%, to settle at 2,506.7. The DJIA rose 0.2%, to settle at 22,370.8, while the NASDAQ advanced 0.1%, to close at 6,461.3.
Europe Market Snapshot
Other European markets ended higher yesterday, helped by a rally in telecommunication stocks. Deutsche Telekom climbed 3.4%, after its US unit, T-Mobile, engaged in an all-stock merger talks with Sprint, which would make the company a majority owner. Telia advanced 2.7%, after the company sold its final 7.0% stake in Turkcell Iletism Hizmetleri, up 0.7%, for $513.4 million. Other telecom firms, Telefonica, Koninklijke KPN and Telenet Group Holding added 0.3%, 0.8% and 1.0%, respectively. Eurofins Scientific jumped 6.4%, the company announced a strategic acquisition of EAG Laboratories in North America. On the flipside, Heineken dropped 3.8%, after Femsa sold its €2.5 billion stake in the former. The FTSEurofirst 300 index gained 0.1%, to close at 1,501.1. Among other European markets, the German DAX Xetra 30 marginally rose to close at 12,561.8, while the French CAC-40 advanced 0.2%, to settle at 5,237.4.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning, with investors exercising caution ahead of the US Federal Reserve’s interest rate decision scheduled later in the day. In Japan, Sony has declined 1.6%, following a broker downgrade on the stock to ‘Neutral’ from ‘Outperform’. On the contrary, Toshiba has advanced 1.9%, amid reports that the company has selected a group led by US private equity firm Bain Capital to buy its memory chip unit. In Hong Kong, brokers, CITIC Securities and Haitong Securities have gained 0.6%, each. In South Korea, index majors, Samsung Securities and LG Electronics have dropped 1.5% and 1.9%, respectively. The Nikkei 225 index is trading marginally lower at 20,298.8. The Hang Seng index is trading 0.3% up at 28,125.6, while the Kospi index is trading 0.1% lower at 2,414.6.
Key Corporate Announcements Today
AGMs
Adamas Finance Asia Limited (DI), Alcentra Euorpean Floating Rate Income Fund Ltd Red Ord Shs, Diageo, Eckoh, Mercantile Ports & Logistics Limited, Scholium Group, United Carpets Group
Final Dividend Payment Date
Aberdeen Private Equity Fund Ltd. Sterling Part Shares, Bloomsbury Publishing, Ramsdens Holdings
Interim Dividend Payment Date
HSBC Holdings, JPMorgan Elect Managed Cash Shares, JPMorgan Elect Managed Growth Shares, JPMorgan Elect Managed Income Shares
Quarterly Payment Date
Brunner Inv Trust
Trading Announcements
Babcock International Group
Key Corporate Announcements for Tomorrow
AGMs
Accsys Technologies, Auto Trader Group, Begbies Traynor Group, Cambium Global Timberland Ltd., Circle Property, F&C Managed Portfolio Trust Income Shares, First Property Group, Gloo Networks, IG Group Holdings, NCC Group, Park Group, Ryanair Holdings, Twentyfour Income Fund Limited Ord Red, VietNam Holding Ltd, WYG, Invesco Perpetual Select Trust
Final Ex-Dividend Date
1pm, AdEPT Telecom, Consort Medical, Coral Products, Dart Group, Hargreaves Services, Joules Group, K3 Capital Group, Kainos Group, Mattioli Woods, Oxford Instruments, Pembroke VCT, Pembroke Vct B, Rank Group, Redrow, Renishaw, Stewart & Wight, Van Elle Holdings
Interim Ex-Dividend Date
Acorn Income Fund Ld, Applegreen, BlackRock Commodities Income Inv Trust, Bovis Homes Group, Chelverton Small Companies Dividend Trust, Crest Nicholson Holdings, Dignity, Drax Group, EMIS Group, Epwin Group, Forterra, Franchise Brands, Games Workshop Group, Gamma Communications, Good Energy Group, GVC Holdings, Henderson High Income Trust, Henry Boot, HGCapital Trust, Hunters Property, Irish Continental Group Units, John Laing Infrastructure Fund Ltd, JPMorgan Income & Capital Inv Trust, Ladbrokes Coral Group, Luceco, Macfarlane Group, Maintel Holdings, Martin Currie Global Portfolio Trust, Midwich Group, Non-Standard Finance, Old Mutual, Pendragon, Petrofac Ltd., Playtech, Property Franchise Group, Servelec Group, Stadium Group, Taylor Wimpey, TwentyFour Select Monthly Income Fund Limited, Vitec Group, Weir Group, XLMedia
Interim Dividend Payment Date
Cineworld Group, Fidessa Group, Hochschild Mining, Legal & General Group, Rio Tinto, Schroders, Schroders (Non-Voting), Ultra Electronics Holdings, Utilico Emerging Markets Ltd (DI), VPC Specialty Lending Investments
Quarterly Payment Date
Fair Oaks Income Limited 2014 Shs NPV, Fair Oaks Income Limited 2017 Shs NPV
Quarterly Ex-Dividend Date
Funding Circle SME Income Fund
Trading Announcements
Mitchells & Butlers, NCC Group
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.47% or $0.26 higher at $55.40 per barrel, ahead of the Energy Information Administration’s weekly oil inventory data, scheduled to be released later today. Yesterday, the contract declined 0.61% or $0.34, to settle at $55.14 per barrel, after the American Petroleum Institute reported that US crude stockpiles advanced by 1.4 million barrels for the week ended 15 September 2017. Meanwhile, Iraq’s Oil Minister, Jabbar al-Luaibi, stated that Iraq and other crude oil producers are considering a proposal to extend the output cut deal until the end of 2018.
At 0330GMT today, Gold futures contract is trading 0.70% or $9.20 higher at $1315.90 per ounce. Yesterday, the contract declined marginally or $0.20, to settle at $1306.70 per ounce, extending its losses for a third consecutive session, as another record high close in the US equities weighed on the safe haven metal.
Currency
At 0330GMT today, the EUR is trading 0.12% higher against the USD at $1.2008, ahead of the European Central Bank’s (ECB) non-monetary policy meeting, scheduled in a few hours. Yesterday, the EUR strengthened 0.33% versus the USD, to close at $1.1994, after Germany’s economic sentiment index advanced more than expected in September on the back of record-high employment, rising real wages and ultra-low borrowing costs. Additionally, the Euro-zone’s current account surplus widened in July.
At 0330GMT today, the GBP is trading 0.15% higher against the USD at $1.3523, ahead of UK’s retail sales data for August, set to release today. Moreover, the Fed’s interest rate decision, due later in the day, would also be on investor’s radar. Yesterday, the GBP rose 0.06% versus the USD, to close at $1.3503. In economic news, the US building permits advanced to its highest level since January in August, while housing starts declined for a second consecutive month in August.
Bitcoin
At 0330GMT today, BTC is trading marginally higher against the USD at $3905.00. Yesterday, BTC declined 4.73% against the USD to close at $3903.09, after Chinese banking regulators ordered all Bitcoin exchanges in Beijing and Shanghai to submit their plans for shutting down their operations by 20 September. Additionally, news emerged that the Chinese authorities might block access to foreign Bitcoin exchanges. In a major development, diamond and luxury jewellery retailer, Samer Halimeh New York, announced that it would now accept Bitcoin for its retail services and gemstone trades.
Key Economic News
Euro-zone current account surplus widened in July
The seasonally adjusted current account surplus in the Euro-zone widened to €25.10 billion in July, compared to a revised current account surplus of €22.80 billion in the prior month.
Euro-zone current account surplus widened in July
The non-seasonally adjusted current account surplus in the Euro-zone widened to €32.50 billion in July. The Euro-zone had registered a revised current account surplus of €29.80 billion in the prior month.
Euro-zone construction output climbed in July
On a monthly basis, the seasonally adjusted construction output advanced 0.20% in the Euro-zone, in July. In the previous month, construction output had registered a revised similar rise.
Euro-zone economic sentiment index climbed in September
In September, the economic sentiment index registered a rise to 31.70 in the Euro-zone. The economic sentiment index had recorded a level of 29.30 in the previous month.
German economic sentiment index climbed in September
The economic sentiment index advanced to 17.00 in September, in Germany, higher than market expectations of an advance to 12.00. In the previous month, the economic sentiment index had registered a reading of 10.00.
German current situation index surprisingly climbed in September
The current situation index advanced unexpectedly to 87.90 in September, in Germany, compared to market expectations of a drop to 86.20. The current situation index had registered a level of 86.70 in the previous month.
Italian current account surplus widened in July
Italy has reported current account surplus of €8.63 billion in July, from a current account surplus of €5.26 billion in the prior month.
US current account deficit rose in 2Q 2017
Current account deficit in the US expanded to $123.10 billion in 2Q 2017, from a revised current account deficit of $113.50 billion in the previous quarter. Markets were anticipating the nation to register a current account deficit of $116.00 billion.
US import price index advanced more than expected in August
In the US, the import price index climbed 0.60% on a MoM basis in August, compared to a revised fall of 0.10% in the previous month. Market expectation was for the import price index to rise 0.40%.
US Redbook index rose in the last week
The seasonally adjusted Redbook index registered a rise of 0.10% on a MoM basis in the US, in the week ended 15 September 2017. In the previous week, the Redbook index had risen 0.30%.
US housing starts declined in August
In August, housing starts eased 0.80%, on MoM basis, to an annual rate of 1180.00 K in the US, compared to market expectations of 1174.00 K. Housing starts had registered a revised level of 1190.00 K in the previous month.
US building permits unexpectedly climbed in August
Compared to a revised reading of 1230.00 K in the previous month, building permits in the US unexpectedly advanced by 5.70%, on MoM basis, to an annual rate of 1300.00 K in August. Markets were anticipating building permits to ease to a level of 1220.00 K.
US import price index advanced less than expected in August
On a YoY basis in August, the import price index rose 2.10% in the US, compared to a revised advance of 1.20% in the prior month. Market expectation was for the import price index to rise 2.20%.
US Redbook index rose in the last week
On a YoY basis, the Redbook index in the US rose 3.60% in the week ended 15 September 2017. In the previous week, the Redbook index had recorded a rise of 4.50%.
US export price index rose more than expected in August
On a MoM basis, the export price index in the US recorded a rise of 0.60% in August, higher than market expectations for an advance of 0.20%. The export price index had registered a revised rise of 0.50% in the previous month.
US export price index rose in August
The export price index advanced 2.30% in the US on an annual basis, in August. The export price index had climbed by a revised 0.90% in the prior month.
Canadian manufacturing shipments declined more than expected in July
In July, manufacturing shipments dropped 2.60% in Canada on a MoM basis, compared to a revised fall of 1.90% in the previous month. Markets were expecting manufacturing shipments to drop 1.90%.
Japanese imports rose more than expected in August
In August, imports rose 15.20% on a YoY basis in Japan, higher than market expectations for a rise of 11.60%. In the previous month, imports had climbed 16.30%.
Japanese merchandise (total) trade surplus dropped in August
Merchandise (total) trade surplus in Japan fell to ¥113.60 billion in August, from a merchandise (total) trade surplus of ¥418.80 billion in the prior month. Markets were expecting the nation to post a merchandise (total) trade surplus of ¥104.40 billion.
Japanese exports advanced more than expected in August
In Japan, exports rose 18.10% on an annual basis in August, more than market expectations for a rise of 14.30%. In the prior month, exports had risen 13.40%.
Japanese adjusted merchandise trade surplus expanded in August
Adjusted merchandise trade surplus in Japan expanded to ¥367.30 billion in August, following a revised adjusted merchandise trade surplus of ¥363.10 billion in the previous month. Market anticipation was for the country's adjusted merchandise trade surplus to rise to ¥404.50 billion.