UK Market Snapshot
UK markets finished in positive territory on Friday, as the Pound weakened against its peers after the release of dismal UK’s annual gross domestic product (GDP) growth data for the second quarter. Sanne Group climbed 4.7%, after the company agreed to acquire Luxembourg Investment Solutions and Compliance Partners for up to €100.0 million. Housebuilders, Barratt Developments, Taylor Wimpey and Persimmon advanced 1.2%, 1.9% and 2.1%, respectively, after UK’s house prices rose more than expected in September. Aviva edged 1.0% up, after the insurer announced that it would sell its Italian joint venture, Avipop Assicurazioni, to Banco BPM for €265.0 million. Bucking the trend, Carillion sank 20.2%, after the company swung to a loss for the first half of the year and trimmed its full year sales forecast. The FTSE 100 advanced 0.7%, to close at 7,372.8, while the FTSE 250 rose 1.0%, to settle at 19,874.8.
US Market Snapshot
US markets finished higher on Friday, with the S&P 500 and NASDAQ indices closing at their record high levels, bolstered by a rally in technology sector stocks. Alphabet, Facebook and NVIDIA advanced 0.9%, 1.3% and 1.8%, respectively. Zogenix skyrocketed 172.2%, after the drugmaker reported positive late-stage trial result from its study on treatment of a rare type of epilepsy. KB Home surged 8.6%, after the housebuilder’s results for the third quarter topped market estimates. Peers, Meritage Homes and DR Horton climbed 2.0% and 2.4%, respectively. Tyson Foods surged 7.6%, after the company raised its projected profit for the full year and announced a restructuring plan to cut 450 jobs across several areas and levels. The S&P 500 gained 0.4%, to settle at 2,519.4. The DJIA rose 0.1%, to settle at 22,405.1, while the NASDAQ advanced 0.7%, to close at 6,496.0.
Europe Market Snapshot
Other European markets ended in the green on Friday, boosted by gains in banking sector stocks. BNP Paribas, Commerzbank and Deutsche Bank advanced 0.9%, 1.1% and 1.4%, respectively. Aryzta climbed 3.2%, after a report indicated that the baked goods group would be separated from La Rousse Foods. Bayer advanced 2.4%, after the company announced that it had sold its 6.9% stake in polymers firm, Covestro, up 0.4%, for €1.0 billion. On the losing side, Volkswagen shed 0.2%, after the carmaker warned that its operating results for the third quarter would be hit by a €2.5 billion charge due to recall of diesel cars in North America. The FTSEurofirst 300 index gained 0.4%, to close at 1,524.8. Among other European markets, the German DAX Xetra 30 rose 1.0%, to close at 12,828.9, while the French CAC-40 advanced 0.7%, to settle at 5,329.8.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning, tracking Friday’s gains on Wall Street and on upbeat macroeconomic data from major economies in the region. In Japan, Godo has jumped 6.6%, after the company lifted its net profit outlook for its April-September period. Ono Pharmaceutical has climbed 3.4%, amid speculation that the researcher who had helped in the development of its cancer treatment drug ‘Opdivo’ could win a Nobel prize this week. On the contrary, Adastria has plunged 7.8%, after the company trimmed its projected net profit for the year ending February 2018 due to weak sales of summer items. In Hong Kong, markets are closed following a national holiday. Also, South Korean markets are closed today on account of a public holiday. The Nikkei 225 index is trading 0.1% higher at 20,376.9. On Friday, the Hang Seng index advanced 0.5%, to close at 27,554.3, while the Kospi index rose 0.9%, to close at 2,394.5.
Key Corporate Announcements Today
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), Renew Holdings
Key Corporate Announcements for Tomorrow
AGMs
Final Dividend Payment Date
WYG
Interim Dividend Payment Date
Arrow Global Group, Croda International, Globaldata, Greencore Group, Jardine Lloyd Thompson Group, Rathbone Brothers
Quarterly Payment Date
Honeywell International Inc.
Trading Announcements
Electrocomponents, Greggs, ITE Group
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.41% or $0.23 lower at $56.56 per barrel, after a survey indicated that OPEC’s crude oil output rose by 50,000 barrels per day (bpd) in September following an increase in Iraq’s oil exports and Libya’s production. On Friday, the contract declined 1.08% or $0.62, to settle at $56.79 per barrel, after Baker Hughes reported that US oil rigs rose by 6 to 750 last week.
At 0330GMT today, Gold futures contract is trading 0.34% or $4.40 lower at $1277.10 per ounce. On Friday, the contract declined 0.31% or $4.00, to settle at $1281.50 per ounce, reversing its previous session gains, amid gains in global stock markets.
Currency
At 0330GMT today, the EUR is trading 0.33% lower against the USD at $1.1775, ahead of Markit manufacturing PMI data across the Euro-area for September and the Euro-zone’s unemployment rate for August, scheduled to be released in a few hours. On Friday, the EUR strengthened 0.24% versus the USD, to close at $1.1814, after Germany’s unemployment rate declined to its record low level in September. Meanwhile, the Euro-zone’s consumer price inflation advanced less than expected on a yearly basis in September.
At 0330GMT today, the GBP is trading 0.23% lower against the USD at $1.3367, ahead of UK’s Markit manufacturing PMI data for September, set to release in a few hours. Moreover, the US ISM and Markit manufacturing PMIs, both for September, due later today, would also be on investor’s radar. On Friday, the GBP weakened 0.33% versus the USD, to close at $1.3398, after UK’s annual GDP grew at a slower than expected pace in the second quarter.
Bitcoin
At 0330GMT today, BTC is trading 5.38% higher against the USD at $4395.47. On Friday, BTC declined 0.40% against the USD to close at $4171.25, after South Korea’s Financial Services Commission announced that it would ban all initial coin offerings (ICOs) in the country. Meanwhile, Japan’s Financial Services Agency (FSA) granted approval to 11 Japanese bitcoin exchanges for operating under the nation’s new financial services regulations. In a major development, Germany’s largest Bitcoin marketplace, Bitcoin.de, stated that it would add Ethereum trading on its platform in the upcoming weeks following the overall rise in demand toward alternative cryptocurrencies (altcoins).
Key Economic News
BoE’s Carney: Interest rates to rise in 'relatively near term'
The Bank of England (BoE) Governor, Mark Carney, stated that interest rates were likely to rise in “relatively near term” if the British economy continues to show signs of strengthening. Further, Carney warned against "reckless" household borrowing, noting that personal lending was becoming a “little frothy and should be addressed”.
UK GDP advanced as expected in 2Q 2017
On a QoQ basis in the UK, the final gross domestic product (GDP) registered a rise of 0.30% in 2Q 2017, compared to an advance of 0.20% in the previous quarter. The preliminary figures had also recorded a rise of 0.30%. Markets were expecting GDP to advance 0.30%.
UK GDP rose less than expected in 2Q 2017
In 2Q 2017, on an annual basis, the final GDP in the UK climbed 1.50%, lower than market expectations for an advance of 1.70%. GDP had climbed 2.00% in the prior quarter. The preliminary figures had indicated a rise of 1.70%.
UK net consumer credit rose more than expected in August
In the UK, net consumer credit rose £1.60 billion in August, compared to a rise of £1.20 billion in the prior month. Market anticipation was for net consumer credit to advance £1.40 billion.
UK net lending to individuals climbed in August
Net lending to individuals in the UK recorded a rise of £5.62 billion in August. Net lending to individuals had climbed £4.75 billion in the prior month.
UK total business investment surprisingly advanced in 2Q 2017
The final total business investment in the UK registered an unexpected rise of 0.50% in 2Q 2017 on a QoQ basis, higher than market expectations for a steady reading. The preliminary figures had indicated a steady reading. Total business investment had climbed 0.60% in the previous quarter.
UK index of services surprisingly fell in July
In July, on a MoM basis, the index of services unexpectedly eased 0.20% in the UK, lower than market expectations for a rise of 0.10%. The index of services had recorded a revised rise of 0.30% in the previous month.
UK index of services advanced less than expected in July
The index of services recorded a rise of 0.50% in the UK on a monthly basis in July, less than market expectations for an advance of 0.70%. In the April-June 2017 period, the index of services had recorded a revised rise of 0.40%.
UK number of mortgage approvals for house purchases dropped in August
Compared to a revised level of 68.50 K in the prior month number of mortgage approvals for house purchases in the UK registered a drop to 66.60 K in August. Markets were expecting number of mortgage approvals for house purchases to fall to 67.30 K.
UK house prices rose more than expected in September
The seasonally adjusted house prices advanced 0.20% in the UK on a MoM basis in September, higher than market expectations for a rise of 0.10%. House prices had fallen 0.10% in the previous month.
UK current account deficit widened in 2Q 2017
Current account deficit in the UK widened to £23.20 billion in 2Q 2017, compared to a revised current account deficit of £22.30 billion in the prior quarter. Markets were expecting the nation's current account deficit to fall to £15.90 billion.
UK house prices rose more than expected in September
On a YoY basis, the non-seasonally adjusted house prices registered a rise of 2.00% in September, in the UK, higher than market expectations for an advance of 1.90%. House prices had registered a rise of 2.10% in the prior month.
UK total business investment surprisingly advanced in 2Q 2017
On a YoY basis, the final total business investment unexpectedly advanced 2.50% in 2Q 2017, in the UK, higher than market expectations for an unchanged reading. In the prior quarter, total business investment had climbed 0.70%. The preliminary figures had recorded a flat reading.
UK net lending secured on dwellings rose more than expected in August
In August, net lending secured on dwellings recorded a rise of £4.00 billion in the UK, more than market expectations for a rise of £3.60 billion. In the previous month, net lending secured on dwellings had advanced £3.60 billion.
Euro-zone core CPI advanced less than expected in September
In September, on a YoY basis, the flash core consumer price index (CPI) in the Euro-zone advanced 1.10%, lower than market expectations for an advance of 1.20%. The core CPI had advanced 1.20% in the previous month.
Euro-zone CPI rose less than expected in September
In the Euro-zone, the flash CPI climbed 1.50% on an annual basis in September, lower than market expectations for an advance of 1.60%. The CPI had registered a similar rise in the prior month.
German number of people unemployed declined more than expected in September
In September, the number of people unemployed fell 23.00 K in Germany, compared to a revised fall of 6.00 K in the previous month. Markets were expecting the number of people unemployed to fall 5.00 K.
German unemployment rate surprisingly dropped in September
In September, the seasonally adjusted unemployment rate eased unexpectedly to a level of 5.60% in Germany, compared to market expectations of an unchanged reading. In the previous month, unemployment rate had registered a level of 5.70%.
German retail sales advanced less than expected in August
In August, retail sales advanced 2.80% on an annual basis in Germany, less than market expectations for a rise of 3.20%. In the previous month, retail sales had registered a revised similar rise.
German retail sales unexpectedly slid in August
In August, on a MoM basis, retail sales unexpectedly dropped 0.40% in Germany, less than market expectations for an advance of 0.50%. In the prior month, retail sales had fallen 1.20%.
French CPI (ex-tobacco) advanced as expected in September
The flash CPI (ex-tobacco) in France advanced 1.00% in September on a YoY basis, at par with market expectations. The CPI (ex-tobacco) had registered a rise of 0.90% in the previous month.
French CPI (ex-tobacco) declined less than expected in September
The flash CPI (ex-tobacco) slid 0.10% on a monthly basis in September, in France, less than market expectations for a drop of 0.20%. In the prior month, the CPI (ex-tobacco) had climbed 0.50%.
French PPI rose in August
In France, the producer price index (PPI) advanced 0.40% in August on a MoM basis. The PPI had risen 0.10% in the prior month.
French EU normalised CPI declined less than expected in September
In France, the flash EU normalised CPI dropped 0.10% on a MoM basis in September, less than market expectations for a drop of 0.20%. EU normalised CPI had climbed 0.60% in the prior month.
French consumer spending surprisingly fell in August
In August, on a monthly basis, consumer spending in France registered an unexpected drop of 0.30%, compared to a revised rise of 0.60% in the previous month. Market anticipation was for consumer spending to advance 0.20%.
Italian EU normalised CPI advanced as expected in September
On a MoM basis, the flash EU normalised CPI advanced 1.80% in September, in Italy, compared to a rise of 0.10% in the prior month. Market anticipation was for the EU normalised CPI to climb 1.80%.
Italian PPI rose in August
On a MoM basis, the PPI recorded a rise of 0.50% in Italy, in August. The PPI had registered an unchanged reading in the prior month.
Italian PPI climbed in August
On an annual basis, the PPI advanced 1.60% in Italy, in August. In the previous month, the PPI had registered a rise of 0.90%.
Italian EU normalised CPI advanced less than expected in September
On a YoY basis, the flash EU normalised CPI in Italy climbed 1.30% in September, lower than market expectations for an advance of 1.40%. In the prior month, the EU normalised CPI had risen 1.40%.
Italian CPI fell more than expected in September
On a MoM basis, in September, the preliminary CPI fell 0.30% in Italy, higher than market expectations for a fall of 0.20%. In the previous month, the CPI had climbed 0.30%.
Italian CPI advanced less than expected in September
On a YoY basis, in September, the preliminary CPI advanced 1.10% in Italy, lower than market expectations for an advance of 1.30%. The CPI had climbed 1.20% in the previous month.
Spanish current account surplus rose in July
Current account surplus in Spain widened to €3.00 billion in July, from a revised current account surplus of €2.20 billion in the prior month.
Swiss KOF economic barometer climbed in September
The KOF economic barometer registered a rise to 105.80 in September, in Switzerland, higher than market expectations of an advance to 105.50. In the prior month, the KOF economic barometer had registered a revised reading of 104.20.
US core personal consumption expenditure rose less than expected in August
On a monthly basis, in the US, core personal consumption expenditure registered a rise of 0.10% in August, lower than market expectations for a rise of 0.20%. Core personal consumption expenditure had registered a similar rise in the previous month.
US personal consumption expenditure deflator advanced less than expected in August
In August on a MoM basis, personal consumption expenditure deflator in the US registered a rise of 0.20%, less than market expectations for an advance of 0.30%. In the previous month, personal consumption expenditure deflator had climbed 0.10%.
US core personal consumption expenditure rose less than expected in August
On an annual basis, in the US, core personal consumption expenditure rose 1.30% in August, lower than market expectations for an advance of 1.40%. Core personal consumption expenditure had risen 1.40% in the prior month.
US personal consumption expenditure deflator advanced less than expected in August
On a YoY basis, personal consumption expenditure deflator rose 1.40% in the US, in August, compared to a similar rise in the previous month. Markets were anticipating personal consumption expenditure deflator to advance 1.50%.
US Reuters/Michigan consumer sentiment index slid in September
In September, the final Reuters/Michigan consumer sentiment index recorded a drop to 95.10 in the US, lower than market expectations of a drop to 95.30. The preliminary figures had indicated a rise to 98.00. In the previous month, the Reuters/Michigan consumer sentiment index had registered a reading of 96.80.
US Chicago Fed purchasing managers index surprisingly rose in September
In the US, the Chicago Fed purchasing managers index recorded an unexpected rise to a level of 65.20 in September, higher than market expectations of a drop to a level of 58.70. The Chicago Fed purchasing managers index had registered a level of 58.90 in the prior month.
US personal income rose as expected in August
Personal income registered a rise of 0.20% on a monthly basis in August, in the US, compared to a revised advance of 0.30% in the previous month. Market anticipation was for personal income to climb 0.20%.
US personal spending rose as expected in August
On a monthly basis, personal spending registered a rise of 0.10% in the US, in August, meeting market expectations. In the prior month, personal spending had advanced 0.30%.
Canadian raw material price index rose more than expected in August
The raw material price index rose 1.00% on a MoM basis in Canada in August, more than market expectations for an advance of 0.30%. In the prior month, the raw material price index had registered a revised drop of 0.90%.
Canadian GDP advanced less than expected in July
On a YoY basis, the GDP in Canada recorded a rise of 3.80% in July, compared to a revised rise of 4.40% in the prior month. Markets were expecting the GDP to advance 3.90%.
Canadian industrial product price index rose less than expected in August
In August, the industrial product price index in Canada advanced 0.30% on a MoM basis, compared to a revised fall of 1.60% in the prior month. Markets were anticipating the industrial product price index to advance 0.50%.
Canadian GDP remained flat in July
In Canada, the GDP remained unchanged on a MoM basis in July, less than market expectations for an advance of 0.10%. The GDP had registered a rise of 0.30% in the previous month.
Japanese annualised housing starts unexpectedly dropped in August
Compared to a level of 0.97 mn units in the previous month the annualised housing starts in Japan dropped unexpectedly to a level of 0.94 mn units in August. Market anticipation was for the annualised housing starts to record a steady reading.
Japanese construction orders slid in August
On a YoY basis, construction orders dropped 10.60% in Japan, in August. Construction orders had advanced 14.90% in the previous month.
Japanese manufacturing PMI advanced in September
In Japan, the final manufacturing PMI climbed to 52.90 in September. In the previous month, manufacturing PMI had registered a reading of 52.20. The preliminary figures had recorded a rise to 52.60.
Japanese Tankan non-manufacturing outlook index rose in 3Q 2017
In 3Q 2017, the Tankan non-manufacturing outlook index in Japan recorded a rise to 19.00, compared to market expectations of a rise to 21.00. In the previous quarter, the Tankan non-manufacturing outlook index had registered a reading of 18.00.
Japanese housing starts surprisingly fell in August
In August on an annual basis, housing starts in Japan recorded an unexpected drop of 2.00%, lower than market expectations for a rise of 0.60%. In the previous month, housing starts had registered a drop of 2.30%.
Japanese Tankan large manufacturing index advanced in 3Q 2017
The Tankan large manufacturing index in Japan recorded a rise to 22.00 in 3Q 2017, compared to market expectations of a rise to 18.00. The Tankan large manufacturing index had recorded a level of 17.00 in the previous quarter.
Japanese Tankan non-manufacturing index steadied in 3Q 2017
In Japan, the Tankan non-manufacturing index remained unchanged at a level of 23.00 in 3Q 2017, lower than market expectations of an advance to a level of 24.00.
Japanese Tankan large manufacturing outlook index rose in 3Q 2017
The Tankan large manufacturing outlook index recorded a rise to 19.00 in 3Q 2017, in Japan, compared to market expectations of an advance to a level of 16.00. The Tankan large manufacturing outlook index had recorded a reading of 15.00 in the prior quarter.
Japanese Tankan large all industry capex rose less than expected in 3Q 2017
In 3Q 2017, on a QoQ basis, Tankan large all industry capex in Japan recorded a rise of 7.70%, lower than market expectations for a rise of 8.40%. Tankan large all industry capex had risen 8.00% in the prior quarter.
Chinese Caixin/Markit manufacturing PMI index declined in September
In September, Caixin/Markit manufacturing PMI index registered a drop to 51.00 in China, compared to a level of 51.60 in the prior month. Markets were expecting Caixin/Markit manufacturing PMI index to drop to a level of 51.50.
Chinese NBS non-manufacturing PMI advanced in September
In September, the NBS non-manufacturing PMI in China climbed to 55.40. The NBS non-manufacturing PMI had registered a level of 53.40 in the prior month.
Chinese NBS manufacturing PMI unexpectedly rose in September
In China, the NBS manufacturing PMI recorded an unexpected rise to 52.40 in September, higher than market expectations of a fall to 51.60. The NBS manufacturing PMI had registered a reading of 51.70 in the previous month.