UK Market Snapshot
UK markets finished in negative territory yesterday, amid rising threat of armed conflict on the Korean Peninsula. Card Factory sank 18.3%, after the company reported a fall in its pretax profit for the first half of the year due to a weaker Pound and rising wage costs. Multinational firms, Rolls-Royce Holdings and Burberry Group dropped 1.1% and 1.4%, respectively. Informa slipped 1.0%, after the company announced the acquisition of open access publisher, Dove Medical Press, for an undisclosed amount. On the brighter side, NMC Health advanced 2.8%, after the company received all regulatory approvals for building three hospitals in Saudi Arabia. Carnival climbed 2.7%, after the company’s earnings and revenue for the third quarter topped market estimates. The FTSE 100 declined 0.2%, to close at 7,285.7, while the FTSE 250 fell 0.3%, to settle at 19,503.2.
US Market Snapshot
US markets closed mostly higher yesterday, following a rebound in technology sector stocks. Meanwhile, the US Federal Reserve (Fed) Chairwoman, Janet Yellen, commented that interest rate hikes should continue at a gradual pace despite uncertainty about the path of inflation. Alphabet, Facebook and Apple rose 0.3%, 0.8% and 1.7%, respectively. Genius Brands International surged 8.8%, after the company struck a deal with Amazon.com, down 0.1%, for a new children’s streaming channel. On the flipside, Darden Restaurants tumbled 6.5%, after the company’s same-store sales for the first quarter missed analysts’ expectations and it warned that its sales and earnings would have more negative impact due to Hurricane Irma than from Hurricane Harvey. The S&P 500 marginally gained to settle at 2,496.8. The DJIA shed 0.1%, to settle at 22,284.3, while the NASDAQ advanced 0.2%, to close at 6,380.2.
Europe Market Snapshot
Other European markets ended slightly higher yesterday, amid strength in major oil firms. Carrefour advanced 3.5%, following speculations about a possible buyout of the firm by Amazon. Deutsche Wohnen climbed 3.3%, after the company launched a new convertible bond offering of €800.0 million due 2026. Nestle advanced 1.8%, after it announced plans to speed up its share buyback plan and confirmed its organic growth target by 2020. On the losing side, adidas declined 2.5%, after news emerged that the US FBI had arrested ten people, including company’s Director of global sports marketing, James Gatto, over a probe into corruption in college basketball. The FTSEurofirst 300 index marginally gained to close at 1,509.6. Among other European markets, the German DAX Xetra 30 rose 0.1%, to close at 12,605.2, while the French CAC-40 marginally advanced to settle at 5,268.8.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning, as investors shrugged off hawkish comments from US Fed Chair, Janet Yellen about the prospect of higher interest rates in the US and as North Korea tensions faded. In Japan, Nihon Nohyaku has declined 3.8%, after the company trimmed its projected operating profit for the year ending September. In Hong Kong, Wanda Hotel Development has surged 13.0%, after a report disclosed that the company would acquire Wanda Hotel Management from Dalian Wanda Commercial Properties for HK$ 878.0 million. CK Hutchison Holdings has risen 0.6%, after Ant Financial announced that it will enter into a joint venture with the former. In South Korea, POSCO and Naver have dropped 1.4% and 1.9%, respectively. The Nikkei 225 index is trading 0.3% lower at 20,271.0. The Hang Seng index is trading 0.4% up at 27,630.3, while the Kospi index is trading marginally higher at 2,375.3.
Key Corporate Announcements Today
AGMs
Aortech International, Duke Royalty Limited, Entertainment One Limited, Fulcrum Utility Services LTD. (DI), Gateley (Holdings), Joules Group, Octagonal, PZ Cussons, Golar LNG
Final Dividend Payment Date
Interim Dividend Payment Date
Lloyds Banking Group, VinaCapital Vietnam Opportunity Fund Ltd.
Trading Announcements
Key Corporate Announcements for Tomorrow
AGMs
Byotrol, Filtronic, Foresight 4 VCT, Ilika, Kainos Group, MBL Group, NWF Group, Tavistock Investments, Fiske plc
Final Ex-Dividend Date
Brooks Macdonald Group, Diverse Income Trust (The), Eckoh, Fulcrum Utility Services Ltd. (DI), Green Reit, Hargreaves Lansdown, IG Group Holdings, Kier Group
Final Dividend Payment Date
Xafinity
Interim Ex-Dividend Date
Advanced Medical Solutions Group, BioPharma Credit, Bluefield Solar Income Fund Limited, Christie Group, Concurrent Technologies, Duke Royalty Limited, Essentra, Flowtech Fluidpower, Foreign and Colonial Inv Trust, Hansteen Holdings, Huntsworth, International Public Partnerships Ltd., Intertek Group, John Laing Group, JPMorgan Global Convertibles Income Fund Ltd, JPMorgan Russian Securities, Medica Group, Morrison (Wm) Supermarkets, Murray Income Trust, NAHL Group, Ruffer Investment Company Ltd Red PTG Pref Shares, SafeCharge International Group Limited (DI), Safestyle UK, Smurfit Kappa Group, Somero Enterprises Inc. (DI), STV Group, Travis Perkins, Worldpay Group, Wynnstay Group
Interim Dividend Payment Date
British American Tobacco, Personal Group Holdings, Prudential, Reckitt Benckiser Group, Wood Group (John)
Special Ex-Dividend Payment Date
Diverse Income Trust (The)
Quarterly Payment Date
MedicX Fund Ltd., Volta Finance Limited
Quarterly Ex-Dividend Date
Mercantile Investment Trust (The), Real Estate Investors, Value and Income Trust
Trading Announcements
3i Infrastructure, RPC Group, TUI AG Reg Shs (DI)
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.38% or $0.22 higher at $58.66 per barrel, ahead of the Energy Information Administration’s weekly oil inventory data, scheduled to be released later today. Yesterday, the contract declined 0.98% or $0.58, to settle at $58.44 per barrel, snapping its four-day winning streak, amid expectations that the US weekly crude oil inventory data would show a rise in crude oil supplies for the fourth consecutive week. Meanwhile, the American Petroleum Institute reported that US crude stockpiles declined by 0.76 million barrels for the week ended 22 September 2017.
At 0330GMT today, Gold futures contract is trading marginally or $0.50 higher at $1298.20 per ounce. Yesterday, the contract declined 0.72% or $9.40, to settle at $1297.70 per ounce, as the US Dollar strengthened against its peers following hawkish comments from Janet Yellen.
Currency
At 0330GMT today, the EUR is trading marginally lower against the USD at $1.1788. Yesterday, the EUR weakened 0.46% versus the USD, to close at $1.1793. On the macro front, Germany’s import price index recorded a flat reading on a monthly basis in August.
At 0330GMT today, the GBP is trading 0.16% lower against the USD at $1.3436, ahead of UK’s CBI distributive trade survey data for September, slated to release in a few hours. Investors will also monitor the US durable goods orders and pending home sales data, both for August, scheduled to be released later today. Yesterday, the GBP slid 0.06% versus the USD, to close at $1.3458. Meanwhile, UK’s BBA mortgage approvals hit a six-month high level in August, indicating a healthy housing market. In other news, the US new home sales surprisingly declined to its lowest level in eight months in August.
Bitcoin
At 0330GMT today, BTC is trading 1.61% higher against the USD at $3945.67. Yesterday, BTC declined 0.93% against the USD to close at $3883.09. Meanwhile, the European Central Bank (ECB) President, Mario Draghi, commented that Bitcoin does not come under the regulatory powers of the central bank in order to regulate or prohibit the same. In other news, MimbleWimble, the developers the privacy and scalability-focused blockchain proposal, indicated their intention to create a new cryptocurrency. News emerged that NXC acquired South Korea’s second largest virtual currency exchange, Korbit, in a deal valued at $150.0 million.
To start trading Bitcoin Click Here
Key Economic News
UK BBA mortgage approvals advanced in August
BBA mortgage approvals recorded a rise to 41.81 K in the UK, in August, compared to market expectations of an advance to 41.70 K. BBA mortgage approvals had recorded a revised level of 41.64 K in the previous month.
German import price index remained unchanged in August
On a monthly basis in Germany, the import price index remained steady in August, less than market expectations for a rise of 0.10%. In the previous month, the import price index had fallen 0.40%.
German import price index rose as expected in August
The import price index rose 2.10% on a YoY basis in Germany in August, at par with market expectations. In the previous month, the import price index had climbed 1.90%.
French production outlook indicator climbed in September
The production outlook indicator advanced to 23.00 in France, in September. The production outlook indicator had recorded a reading of 20.00 in the previous month.
French own-company production outlook climbed in September
Own-company production outlook in France rose to a level of 18.00 in September. In the prior month, own-company production outlook had registered a revised reading of 14.00.
French industrial business climate index steadied in September
The industrial business climate index remained unchanged at 109.00 in September, in France. Market anticipation was for the industrial business climate index to rise to a level of 110.00.
Janet Yellen: Fed may have misjudged inflation, gradual hikes should continue
The Federal Reserve (Fed) Chairwoman, Janet Yellen, stated that the central bank may have overstated the strength of the US labour market and inflation rate and that downward pressures on inflation could prove to be unexpectedly persistent. However, she added that it would be appropriate to continue gradual interest rate hikes, while warning against waiting too long to raise interest rates in order to avoid the economy from overheating.
US new home sales unexpectedly fell in August
New home sales registered an unexpected drop of 3.40%, on monthly basis, to a level of 560.00 K in the US, in August, compared to a revised level of 580.00 K in the prior month. Market anticipation was for new home sales to rise to a level of 585.00 K.
US Redbook index rose in the last week
On a YoY basis, the Redbook index registered a rise of 4.00% in the US, in the week ended 22 September 2017. The Redbook index had recorded a rise of 3.60% in the previous week.
US Richmond Fed manufacturing index unexpectedly rose in September
In September, the Richmond Fed manufacturing index in the US rose unexpectedly to a level of 19.00, higher than market expectations of a drop to 13.00. The Richmond Fed manufacturing index had registered a level of 14.00 in the prior month.
US S&P/Case-Shiller composite index of 20 metropolitan areas advanced more than expected in July
The seasonally adjusted S&P/Case-Shiller composite index of 20 metropolitan areas advanced 0.35% on a monthly basis in the US in July, higher than market expectations for an advance of 0.20%. In the prior month, the S&P/Case-Shiller composite index of 20 metropolitan areas had risen by a revised 0.09%.
US CB consumer confidence index dropped in September
Compared to a revised level of 120.40 in the previous month the CB consumer confidence index recorded a drop to 119.80 in the US, in September. Markets were anticipating the CB consumer confidence index to ease to a level of 120.00.
US S&P/Case-Shiller composite home price index (HPI) of 20 metropolitan areas advanced more than expected in July
On an annual basis, in July, the S&P/Case-Shiller composite home price index (HPI) of 20 metropolitan areas recorded a rise of 5.81% in the US, compared to a rise of 5.65% in the previous month. Market expectation was for the S&P/Case-Shiller composite home price index (HPI) of 20 metropolitan areas to climb 5.70%.
US S&P/Case-Shiller home price index rose in July
In July, the S&P/Case-Shiller home price index advanced to 201.99 in the US. In the prior month, the S&P/Case-Shiller home price index had recorded a revised level of 200.53.
US Redbook index remained unchanged in the last week
The seasonally adjusted Redbook index in the US remained flat on a MoM basis, in the week ended 22 September 2017. The Redbook index had registered a rise of 0.10% in the prior week.
Chinese industrial profits (YoY) rose in August
In August, on an annual basis, industrial profits (YoY) in China registered a rise of 24.00%. In the previous month, industrial profits (YoY) had registered a rise of 16.50%.