UK Market Snapshot
UK markets finished in positive territory yesterday, boosted by gains in banking and mining sector stocks. Royal Bank of Scotland Group climbed 3.4%, following a broker upgrade on the stock to ‘Buy’ from ‘Hold’. Other lenders, Barclays, Standard Chartered and Lloyds Banking Group advanced 1.0%, 1.8% and 3.4%, respectively. Miners, Rio Tinto, Anglo American and Antofagasta gained 0.2%, 1.2% and 1.3%, respectively, amid higher copper prices. Carillion rallied 21.0%, on speculation that a Middle Eastern firm was considering making a takeover bid for the company. On the flipside, precious metal miners, Fresnillo and Randgold Resources dropped 1.6% and 2.3%, respectively, as gold prices declined. SSE declined 1.6%, after the utility company warned about its earnings for the full year due to a reduction in revenue for its networks business. The FTSE 100 advanced 0.4%, to close at 7,313.5, while the FTSE 250 rose 0.3%, to settle at 19,569.5.
US Market Snapshot
US markets ended in the green yesterday, after the Republicans unveiled their tax reform plan which proposed a 20.0% corporate tax rate. Micron Technology surged 8.5%, after the company posted higher than expected profit for the fourth quarter. Citigroup, Goldman Sachs Group and Bank of America climbed 1.9%, 2.1% and 2.4%, amid rising expectations of another rate hike by the US Federal Reserve (Fed) in 2017. JPMorgan Chase gained 1.6%. The bank received an order to pay more than $4.0 billion in damages for mishandling the estate of a former Executive for American Airlines Group, down 1.5%. Bucking the trend, NIKE declined 1.9%, after the company reported its slowest sales growth in nearly seven years in the first quarter. The S&P 500 gained 0.4%, to settle at 2,507.0. The DJIA rose 0.3%, to settle at 22,340.7, while the NASDAQ advanced 1.1%, to close at 6,453.3.
Europe Market Snapshot
Other European markets closed higher yesterday, amid merger and acquisition deal and gains in banking sector stocks. Alstom advanced 4.3%, after the company agreed to merge its rail operations with Siemens, up 1.6%, to create a new European rail giant. German lenders, Commerzbank and Deutsche Bank climbed 3.1% and 3.8%, respectively. Fortum rose 0.9%, after the company announced that it would launch an €8.0 billion takeover offer for Uniper, down 1.3%. Telefonica gained 3.0%, following a broker upgrade on the stock to ‘Buy’ from ‘Hold’. Novo Nordisk added 0.6%, after the drugmaker received approval from the China Food and Drug Administration for its diabetes treatment drug ‘Tresiba’. The FTSEurofirst 300 index gained 0.4%, to close at 1,515.6. Among other European markets, the German DAX Xetra 30 rose 0.4%, to close at 12,657.4, while the French CAC-40 advanced 0.3%, to settle at 5,282.0.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning. In Japan, financial firms, Mitsubishi UFJ Financial Group, Dai-ichi Life Holdings and T&D Holdings have climbed 1.5%, 2.2% and 2.3%, respectively. Yamato Holdings has advanced 1.6%, after a report indicated that the company has apparently convinced Amazon.com to pay at least 40.0% more for shipping services in Japan. In Hong Kong, brokers, CITIC Securities and Haitong Securities have declined 1.3% and 1.4%, respectively. AIA Group has slipped 0.8%, following a broker downgrade on the stock to ‘Underperform’ from ‘Neutral’. In South Korea, automakers, Hyundai Motor and Kia Motors have fallen 0.7% and 2.2%, respectively. The Nikkei 225 index is trading 0.3% higher at 20,325.5. The Hang Seng index is trading 0.4% down at 27,540.4, while the Kospi index is trading 0.1% lower at 2,369.3.
Key Corporate Announcements Today
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)
Key Corporate Announcements for Tomorrow
AGMs
IMImobile, KSK Power Ventur, Legendary Investments, OPG Power Ventures, Purplebricks Group, Torotrak, Trafalgar New Homes, Vale International Group Ltd (DI)
EGMs
Novolipetsk Steel GDS (Reg S), Starwood European Real Estate Finance Ltd
Final Dividend Payment Date
Arcontech Group, Auto Trader Group, BCA Marketplace, Clipper Logistics, Downing Four VCT DP67, Downing Four VCT DSO 'D' Shs, Filta Group Holdings, First Property Group, NCC Group, Safeland, Van Elle Holdings
Interim Ex-Dividend Date
Mitsubhi Electric Corp.
Interim Dividend Payment Date
Aberdeen Emerging Markets Investment Company, Acorn Income Fund Ld, Aew UK Reit, Albion Development VCT, Arbuthnot Banking Group, British Smaller Companies VCT 2, Capital & Counties Properties, Centamin (DI), CLS Holdings, Ediston Property Investment Company, Elderstreet VCT, Elementis, F&C Capital & Income Inv Trust, F&C UK Real Estate Investments Limited, Foresight VCT, Global Ports Holding, Ground Rents Income Fund, Henderson Diversified Income Ltd., Imperial Brands, Juridica Investments Ltd., Meggitt, Millennium & Copthorne Hotels, Octopus AIM VCT 2, Perpetual Income & Growth Inv Trust, Polymetal International, Rights & Issues Inv Trust Income Shares, Secure Trust Bank, SEGRO, SQN Secured Income Fund, St James's Place, Temple Bar Inv Trust, The Gym Group, TOC Property Backed Lending Trust, Trinity Mirror, TwentyFour Select Monthly Income Fund Limited
Quarterly Payment Date
HICL Infrastructure Company Ltd, Honeycomb Investment Trust, NextEnergy Solar Fund Limited Red, Premier Energy & Water Trust, The Renewables Infrastructure Group Limited
Trading Announcements
Purplebricks Group
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.36% or $0.21 lower at $57.69 per barrel. Yesterday, the contract declined 0.92% or $0.54, to settle at $57.90 per barrel. Meanwhile, the Energy Information Administration reported that US crude inventories declined by 1.8 million barrels for the week ended 22 September 2017.
At 0330GMT today, Gold futures contract is trading 0.12% or $1.60 higher at $1285.70 per ounce. Yesterday, the contract fell 1.05% or $13.60, to settle at $1284.10 per ounce, as the US Dollar surged against its peers after the US Republicans disclosed their tax reform plan.
Currency
At 0330GMT today, the EUR is trading 0.06% lower against the USD at $1.1738, ahead of Germany’s GfK consumer confidence index for October, set to release in sometime and consumer price inflation data for September, due to release today. Investors will also monitor the Euro-zone’s consumer and industrial confidence indices, both for September, slated to release in a few hours. Yesterday, the EUR weakened 0.41% versus the USD, to close at $1.1745.
At 0330GMT today, the GBP is trading marginally lower against the USD at $1.3383, ahead of the Bank of England (BoE) Governor, Mark Carney’s speech, due in a few hours. Moreover, the US gross domestic product (GDP) data for the second quarter and weekly jobless claims, due later today, would be on investors’ radar. Yesterday, the GBP declined 0.53% versus the USD, to close at $1.3387. Meanwhile, the CBI distributive trades survey showed that UK’s retail sales balance surged to its two year high level in September.
Bitcoin
At 0330GMT today, BTC is trading 0.54% lower against the USD at $4177.51. Yesterday, BTC surged 8.16% against the USD to close at $4200.00, as investor sentiment was boosted after Morgan Stanley CEO, James Gorman, commented that Bitcoin is “certainly something more than just a fad”. Meanwhile, Macau’s financial regulator, the Monetary Authority of Macau (AMCM), barred the nation’s financial institutions from providing financial services to businesses issuing digital currencies or tokens.
Key Economic News
UK CBI distributive trade survey's retail sales balance rose in September
The CBI distributive trade survey's retail sales balance rose to a level of 42.00% in September, in the UK, compared to market expectations of a rise to a level of 8.00%. In the previous month, the CBI distributive trade survey's retail sales balance had registered a reading of 10.00%.
Euro-zone private sector loans rose less than expected in August
Private sector loans climbed 2.50% on an annual basis in August, in the Euro-zone, compared with an advance of 2.40% in the prior month. Markets were expecting private sector loans to climb 2.70%.
French consumer confidence surprisingly fell in September
In September, consumer confidence in France recorded an unexpected drop to a level of 101.00, compared to market expectations of an unchanged reading. Consumer confidence had registered a level of 103.00 in the prior month.
Italian business confidence index surprisingly advanced in September
In September, the business confidence index in Italy registered an unexpected rise to a level of 110.40, higher than market expectations of a fall to a level of 108.20. In the prior month, the business confidence index had registered a revised reading of 108.50.
Italian industrial sales advanced in July
In July, on a YoY basis, the non-seasonally adjusted industrial sales advanced 4.00% in Italy. Industrial sales had advanced by a revised 7.30% in the prior month.
Italian consumer confidence index unexpectedly advanced in September
The consumer confidence index in Italy climbed unexpectedly to a level of 115.50 in September, compared to a revised reading of 111.20 in the previous month. Markets were anticipating the consumer confidence index to drop to 110.60.
Italian industrial sales fell in July
The seasonally adjusted industrial sales in Italy eased 0.30% in July on a monthly basis. Industrial sales had dropped by a revised 0.70% in the prior month.
Italian industrial orders rose in July
The seasonally adjusted industrial orders advanced 0.20% on a MoM basis, in July, in Italy. Industrial orders had recorded a revised drop of 0.70% in the prior month.
Italian industrial orders rose in July
On an annual basis, the non-seasonally adjusted industrial orders registered a rise of 10.10% in July, in Italy. Industrial orders had fallen by a revised 1.80% in the prior month.
Swiss economic expectations index rose in September
In September, the economic expectations index in Switzerland rose to a level of 28.00. The economic expectations index had recorded a level of 25.00 in the prior month.
Swiss UBS consumption indicator climbed in August
In Switzerland climbed to 1.53 in August. UBS consumption indicator had recorded a revised reading of 1.46 in the prior month.
US non-defence capital goods orders (ex aircraft) advanced more than expected in August
On a MoM basis, the preliminary non-defence capital goods orders (ex aircraft) rose 0.90% in the US, in August, more than market expectations for an advance of 0.30%. In the previous month, the non-defence capital goods orders (ex aircraft) had registered a rise of 1.00%.
US pending home sales fell more than expected in August
In the US, pending home sales fell 3.10% on a YoY basis in August, more than market expectations for a drop of 0.50%. Pending home sales had fallen 0.50% in the previous month.
US mortgage applications dropped in the last week
In the US, mortgage applications eased 0.50% in the week ended 22 September 2017 on a weekly basis. Mortgage applications had recorded a drop of 9.70% in the previous week.
US pending home sales declined more than expected in August
On a MoM basis, pending home sales in the US eased 2.60% in August, compared to a drop of 0.80% in the prior month. Markets were expecting pending home sales to fall 0.50%.
US durable goods orders (ex transportation) rose as expected in August
In August, on a MoM basis, the preliminary durable goods orders (ex transportation) in the US advanced 0.20%, at par with market expectations. Durable goods orders (ex transportation) had advanced 0.60% in the prior month.
US durable goods orders advanced more than expected in August
In August, the flash durable goods orders in the US rose 1.70% on a monthly basis, more than market expectations for an advance of 1.00%. In the previous month, durable goods orders had registered a drop of 6.80%.
US non-defence capital goods shipments (ex aircraft) rose more than expected in August
The flash non-defence capital goods shipments (ex aircraft) climbed 0.70% on a MoM basis in the US, in August, higher than market expectations for a rise of 0.10%. In the prior month, the non-defence capital goods shipments (ex aircraft) had recorded a rise of 1.20%.
BoC will proceed ‘cautiously’ on rates: Governor Poloz
The Bank of Canada (BoC) Governor, Stephen Poloz, indicated that the central bank will take a cautious approach to any future interest rate hikes. Further, Poloz stressed that there is no prearranged route for further interest rate hikes and added that any move will be data-dependent.
Foreign investors remained net sellers of Japanese stocks in the previous week
Foreign investors were net sellers of ¥923.90 billion worth of Japanese stocks in the week ended 22 September 2017, from being net sellers of ¥918.60 billion worth of Japanese stocks in the previous week.
Japanese investors remained net buyers of foreign stocks in the previous week
Japanese investors were net buyers of ¥69.70 billion worth of foreign stocks in the week ended 22 September 2017, from being net buyers of ¥141.90 billion worth of foreign stocks in the previous week.
Foreign investors became net sellers of Japanese bonds in the previous week
Foreign investors were net sellers of ¥1389.90 billion worth of Japanese bonds in the week ended 22 September 2017, as compared to being net sellers of a revised ¥56.20 billion worth of Japanese bonds in the previous week.
Japanese investors became net buyers of foreign bonds in the previous week
Japanese investors were net buyers of ¥233.60 billion worth of foreign bonds in the week ended 22 September 2017, as compared to being net buyers of a revised ¥384.20 billion worth of foreign bonds in the previous week.
Japanese small business confidence index climbed in September
In September, the small business confidence index recorded a rise to 49.40 in Japan, lower than market expectations of a rise to 49.50. The small business confidence index had recorded a reading of 49.00 in the prior month.
Japanese machine tool orders rose in August
In August, on an annual basis, the final machine tool orders in Japan climbed 36.20%. Machine tool orders had registered a rise of 28.00% in the prior month. The preliminary figures had indicated a rise of 36.30%.