UK Market Snapshot
UK markets ended in the green yesterday, boosted by gains in banking sector stocks. HSBC Holdings, Barclays and Standard Chartered rose 0.3%, 1.0% and 1.1%, respectively. SSP Group jumped 5.7%, after the company projected a significant rise in its revenue for the full year, helped by robust sales in its final quarter due to an increase in passenger numbers at airports. Stagecoach Group climbed 2.5%, after the company reiterated its earnings per share outlook for the year ending 28 April 2018. Synthomer edged 0.9% up, after the company acquired the business and assets of BASF Austrian SBR for €30.0 million. Bucking the trend, TUI shed 0.2%, after the company revealed that its operations in the Caribbean and Florida have been affected by recent hurricanes. The FTSE 100 advanced 0.1%, to close at 7,322.8, while the FTSE 250 rose 0.6%, to settle at 19,678.5.
US Market Snapshot
US markets finished slightly higher yesterday, with the S&P 500 index closing at its record high level following gains in materials and real estate sector stocks. Exa rallied 42.6%, after French software company, Dassault Systemes, agreed to acquire the former in a $400.0 million cash deal. BlackBerry surged 13.4%, after the company’s profit and sales for the second quarter topped analysts’ estimates. AbbVie rose 5.0%, after the company reached a settlement with Amgen, up 0.3%, over an intellectual property-related litigation. McDonald’s advanced 2.2%, after a broker upgraded its rating on the stock to ‘Buy’ from ‘Neutral’, amid expectations that its third quarter comparable sales would beat market projections. The S&P 500 gained 0.1%, to settle at 2,510.1. The DJIA rose 0.2%, to settle at 22,381.2, while the NASDAQ closed almost flat at 6,453.5.
Europe Market Snapshot
Other European markets closed in positive territory yesterday, amid a rally in financial sector stocks. Societe Generale, Banco Santander and Deutsche Bank advanced 0.4%, 0.5% and 1.9%, respectively. Insurers, Baloise Holding, Zurich Insurance Group and Swiss Life Holding gained 0.9%, 1.2% and 1.3%, respectively. Energy giants, Eni, TOTAL and Statoil added 0.1%, 0.2% and 1.0%, respectively. On the losing side, Hennes & Mauritz tumbled 5.1%, after the retailer posted a sharp drop in its profit for the third quarter amid heavy summer discounts. Ryanair Holdings declined 3.7%, as the airline faced legal action for “persistently misleading” passengers about their rights following the wave of flight cancellations because of a shortage of pilots. The FTSEurofirst 300 index gained 0.2%, to close at 1,518.1. Among other European markets, the German DAX Xetra 30 rose 0.4%, to close at 12,704.7, while the French CAC-40 advanced 0.2%, to settle at 5,293.8.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning. In Japan, Koito Manufacturing has plunged 6.5%, after the company trimmed its guidance for the full year. In contrast, Genki Sushi has jumped 6.0%, after a report indicated that the company will acquire a one-third stake in Sushiro Global Holdings, up 4.5%, from private equity company, Permira. Toshiba has advanced 2.9%, after the company signed a deal with a consortium led by Bain Capital to sell its memory chip unit for $18.0 billion. In Hong Kong, property stocks, China Vanke, Henderson Land Development and Great Eagle Holdings have slipped 0.2%, 0.3% and 0.9%, respectively. In South Korea, POSCO, Hyundai Motor and AmorePacific have climbed 0.6%, 2.4% and 3.0%, respectively. The Nikkei 225 index is trading 0.3% lower at 20,305.0. The Hang Seng index is trading 0.3% up at 27,493.7, while the Kospi index is trading 0.6% higher at 2,387.3.
Key Corporate Announcements Today
AGMs
IMImobile, KSK Power Ventur, Legendary Investments, OPG Power Ventures, Purplebricks Group, Torotrak, Trafalgar New Homes, Vale International Group Ltd (DI), MediaZest, Shearwater
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
Key Corporate Announcements for Monday
Final Dividend Payment Date
Park Group
Interim Dividend Payment Date
Alliance Trust, Chelverton Small Companies Dividend Trust, Northern Electricity Prf, Phoenix Group Holdings (DI), Portmeirion Group, Robinson
Quarterly Payment Date
Raven Russia Ltd 6.5% Red Cnv Pref Shs NPV, Raven Russia Ltd. Cum Red Pref Shares
Trading Announcements
Daily Mail and General Trust A (Non.V)
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.30% or $0.17 higher at $57.58 per barrel, ahead of the weekly US oil rig count data by Baker Hughes, scheduled to be released later today. Yesterday, the contract declined 0.85% or $0.49, to settle at $57.41 per barrel, extending its previous session losses.
At 0330GMT today, Gold futures contract is trading 0.17% or $2.20 higher at $1287.70 per ounce. Yesterday, the contract advanced 0.11% or $1.40, to settle at $1285.50 per ounce, as the US Dollar weakened against its peers.
Currency
At 0330GMT today, the EUR is trading 0.06% lower against the USD at $1.1779, ahead of Germany’s retail sales data for August along with the nation’s unemployment rate figures for September, both set to release in a few hours. Additionally, the Euro-zone’s consumer inflation data for September, due to release today, will be closely assessed by investors. Moreover, market participants will closely await the European Central Bank (ECB) President, Mario Draghi’s speech, scheduled later today. Yesterday, the EUR strengthened 0.35% versus the USD, to close at $1.1786, after the Euro-zone’s economic sentiment advanced to its highest level in ten years in September. Meanwhile, Germany’s consumer confidence index surprisingly declined in October.
At 0330GMT today, the GBP is trading 0.22% lower against the USD at $1.3413, ahead of UK’s final gross domestic product (GDP) data for the second quarter and net consumer credit data for August, slated to release in a few hours. Yesterday, the GBP gained 0.41% versus the USD, to close at $1.3442. Meanwhile, the Bank of England (BoE) Governor, Mark Carney, commented that the Bank of England (BoE) cannot be expected to nullify the effects on the nation’s economy from the Brexit and that it has limited provisions to lessen the damage caused due to the Brexit.
Bitcoin
At 0330GMT today, BTC is trading 2.80% lower against the USD at $4070.96. Yesterday, BTC declined 0.28% against the USD to close at $4188.14, as investor sentiment was dented following a news that CME Group, the world’s largest futures exchange, would not introduce a futures contract for Bitcoin. In a major news, the traders might witness another hard fork on 25 October which would be known as “Bitcoin Gold” (BTG). Also, the Chief Executive of the Economic Development Board of Bahrain, Khalid Al Rumaihi, indicated the nation’s interest in Bitcoin and other cryptocurrencies and hoped that the country could issue bonds on digital currency.
Key Economic News
Mark Carney: BoE can't be expected to nullify Brexit hit
The Bank of England (BoE) Governor, Mark Carney, suggested that the central bank has limited means to mitigate the damage from Brexit, although it could influence how that hit is spread across Britain. He further added that the BoE will continue to assess and express its independent assessment of the risks associated with Brexit.
UK consumer confidence unexpectedly climbed in September
In the UK, the consumer confidence rose unexpectedly to a level of -9.00 in September, higher than market expectations of a drop to a level of -11.00. The consumer confidence had registered a reading of -10.00 in the prior month.
UK business barometer rose in September
In September, the business barometer in the UK recorded a rise of 23.00 %. The business barometer had registered a reading of 17.00 % in the prior month.
Euro-zone industrial confidence index climbed in September
In the Euro-zone, the industrial confidence index registered a rise to 6.60 in September, compared to market expectations of a rise to 5.20. In the previous month, the industrial confidence index had recorded a revised reading of 5.00.
Euro-zone consumer confidence index advanced in September
The final consumer confidence index registered a rise to -1.20 in September, in the Euro-zone, compared to a level of -1.50 in the prior month. The preliminary figures had also recorded an advance to -1.20. Market expectation was for the consumer confidence index to advance to.
Euro-zone services sentiment indicator unexpectedly climbed in September
The services sentiment indicator in the Euro-zone recorded an unexpected rise to 15.30 in September, compared to market expectations of a fall to a level of 15.00. In the previous month, the services sentiment indicator had recorded a revised level of 15.10.
Euro-zone economic sentiment indicator advanced in September
The economic sentiment indicator in the Euro-zone climbed to 113.00 in September, compared to a reading of 111.90 in the previous month. Market expectation was for the economic sentiment indicator to advance to a level of 112.00.
Euro-zone business climate indicator rose in September
In the Euro-zone, the business climate indicator advanced to 1.34 in September, compared to market expectations of an advance to a level of 1.12. The business climate indicator had recorded a revised level of 1.08 in the prior month.
German consumer confidence index surprisingly declined in October
In Germany, the consumer confidence index recorded an unexpected drop to a level of 10.80 in October, lower than market expectations of an advance to a level of 11.00. In the previous month, the consumer confidence index had registered a reading of 10.90.
German HICP remained flat in September
On a monthly basis, the preliminary harmonised consumer price index (HICP) remained flat in September, in Germany, lower than market expectations for an advance of 0.10%. The HICP had climbed 0.20% in the previous month.
German HICP rose less than expected in September
The flash HICP registered a rise of 1.80% in Germany on a YoY basis in September, less than market expectations for an advance of 1.90%. In the previous month, the HICP had registered a similar rise.
German CPI advanced as expected in September
In September, the preliminary consumer price index (CPI) in Germany climbed 0.10% on a MoM basis, at par with market expectations. The CPI had registered a similar rise in the previous month.
German CPI advanced as expected in September
The flash CPI in Germany registered a rise of 1.80% on an annual basis in September, compared to a similar rise in the prior month. Markets were expecting the CPI to climb 1.80%.
Spanish HICP advanced less than expected in September
The flash HICP rose 0.60% on a monthly basis in Spain, in September, compared with an advance of 0.20% in the prior month. Market anticipation was for the HICP to climb 0.80%.
Spanish CPI advanced more than expected in September
In September, on a monthly basis, the preliminary CPI rose 0.20% in Spain, higher than market expectations for a rise of 0.10%. The CPI had registered a similar rise in the prior month.
Spanish CPI advanced as expected in September
In September, on a YoY basis, the preliminary CPI advanced 1.80% in Spain, at par with market expectations. The CPI had registered a rise of 1.60% in the previous month.
Spanish HICP advanced less than expected in September
On a YoY basis in September, the flash HICP recorded a rise of 1.90% in Spain, compared with an advance of 2.00% in the previous month. Markets were anticipating the HICP to advance 2.00%.
Spanish retail sales rose less than expected in August
On a YoY basis, retail sales rose 1.60% in August, in Spain, less than market expectations for an advance of 2.00%. Retail sales had registered a rise of 1.10% in the prior month.
US wholesale inventories advanced more than expected in August
In August, the seasonally adjusted preliminary wholesale inventories in the US climbed 1.00% on a monthly basis, compared to a rise of 0.60% in the prior month. Market anticipation was for the wholesale inventories to advance 0.40%.
US continuing jobless claims unexpectedly fell in the last week
The seasonally adjusted continuing jobless claims in the US registered an unexpected drop to 1934.00 K in the week ended 16 September 2017, lower than market expectations of an advance to 1993.00 K. Continuing jobless claims had registered a revised reading of 1979.00 K in the previous week.
US GDP price index advanced as expected in 2Q 2017
On a quarterly basis, in 2Q 2017, the final gross domestic product (GDP) price index rose 1.00% in the US, meeting market expectations. The preliminary figures had also indicated a rise of 1.00%. The GDP price index had recorded a revised rise of 2.00% in the previous quarter.
US annualised GDP rose more than expected in 2Q 2017
In 2Q 2017, on a QoQ basis, the final annualised gross domestic product in the US recorded a rise of 3.10%, compared to a revised rise of 1.20% in the previous quarter. The preliminary figures had recorded an advance of 3.00%. Market anticipation was for the annualised GDP to climb 3.00%.
US personal consumption advanced as expected in 2Q 2017
In 2Q 2017, on a QoQ basis, the final personal consumption rose 3.30% in the US, compared to a revised advance of 1.90% in the prior quarter. Markets were expecting personal consumption to advance 3.30%. The preliminary figures had also indicated a rise of 3.30%.
US Kansas City Fed manufacturing activity index unexpectedly rose in September
In September, the Kansas City Fed manufacturing activity index in the US registered an unexpected rise to 17.00, higher than market expectations of a drop to a level of 15.00. The Kansas City Fed manufacturing activity index had recorded a level of 16.00 in the previous month.
US initial jobless claims rose in the last week
In the week ended 23 September 2017, the seasonally adjusted initial jobless claims climbed to 272.00 K in the US, compared to market expectations of a rise to 270.00 K. In the prior week, initial jobless claims had registered a revised reading of 260.00 K.
US advance goods trade deficit dropped in August
Advance goods trade deficit in the US dropped to $62.90 billion in August, following a revised advance goods trade deficit of $63.90 billion in the prior month. Markets were expecting the country's advance goods trade deficit to rise to $65.10 billion.
US core personal consumption expenditure rose as expected in 2Q 2017
In the US, the final core personal consumption expenditure climbed 0.90% in 2Q 2017 on a QoQ basis, compared to a revised advance of 1.80% in the previous quarter. The preliminary figures had also indicated an advance of 0.90%. Markets were anticipating core personal consumption expenditure to advance 0.90%.
BoJ Summary of opinions: One member called for ramping up stimulus in September
The Bank of Japan’s (BoJ) summary of opinions report showed that one official called for expanding monetary stimulus at the central bank’s September meeting, while most policymakers remained in favour of maintaining the current stimulus programme, as the bank was far from achieving the inflation target.
Japanese retail trade rose less than expected in August
Retail trade climbed 1.70% in Japan on an annual basis in August, lower than market expectations for an advance of 2.50%. In the prior month, retail trade had registered a rise of 1.90%.
Japanese Tokyo CPI excluding fresh food advanced as expected in September
Tokyo CPI excluding fresh food in Japan registered a rise of 0.50% in September on an annual basis, compared to a rise of 0.40% in the previous month. Markets were anticipating Tokyo CPI excluding fresh food to advance 0.50%.
Japanese industrial production rose more than expected in August
On a monthly basis, the preliminary industrial production recorded a rise of 2.10% in Japan, in August, compared to a fall of 0.80% in the prior month. Markets were anticipating industrial production to climb 1.80%.
Japanese industrial production rose more than expected in August
The preliminary industrial production rose 5.40% on an annual basis in Japan, in August, more than market expectations for a rise of 5.20%. In the prior month, industrial production had risen 4.70%.
Japanese household spending rose less than expected in August
On a YoY basis, household spending climbed 0.60% in Japan, in August, compared to a drop of 0.20% in the prior month. Markets were anticipating household spending to rise 0.90%.
Japanese large retailer's sales rose more than expected in August
Large retailer's sales registered a rise of 0.60% in Japan on a MoM basis in August, higher than market expectations for a rise of 0.30%. In the previous month, large retailer's sales had registered a drop of 0.20%.
Japanese unemployment rate steadied in August
Unemployment rate remained flat at a level of 2.80% in Japan, in August, meeting market expectations.
Japanese national CPI (CPI) rose more than expected in August
On a YoY basis, the national CPI (CPI) in Japan registered a rise of 0.70% in August, compared with an advance of 0.40% in the previous month. Markets were anticipating the national CPI (CPI) to rise 0.60%.
Japanese corporate loans & discounts advanced in August
Corporate loans & discounts climbed 3.69% on a YoY basis in Japan, in August. Corporate loans & discounts had risen 3.80% in the previous month.
Japanese retail trade dropped more than expected in August
In August, retail trade slid 1.70% in Japan, on a monthly basis, higher than market expectations for a drop of 0.50%. Retail trade had registered a rise of 1.10% in the prior month.
Japanese Tokyo CPI rose less than expected in September
On an annual basis, Tokyo CPI in Japan rose 0.50% in September, less than market expectations for a rise of 0.60%. In the prior month, Tokyo CPI had registered a similar rise.
Japanese National CPI ex-fresh food advanced as expected in August
National CPI ex-fresh food advanced 0.70% on a YoY basis in August, in Japan, compared to a rise of 0.50% in the prior month. Markets were anticipating National CPI ex-fresh food to advance 0.70%.
Japanese job to applicant ratio steadied in August
Job to applicant ratio remained flat at 1.52 in August, in Japan, compared to market expectations of a rise to a level of 1.53.