UK Market Snapshot
UK markets finished in positive territory yesterday. The FTSE 100 index closed higher as the Pound weakened against its peers following the release of disappointing UK construction sector data for September. Electrocomponents climbed 5.4%, after the firm reported a rise in its first half revenues and raised its profit outlook. Ferguson rose 4.0%, after the company reported a jump in its pretax profit for the year ended 31 July and announced a £500.0 million share repurchase plan. Retailer, J Sainsbury advanced 3.3%, after a broker initiated coverage of the stock with a ‘Buy’ rating and a target price of 300.0p. Peer, Tesco gained 1.8%. On the other hand, WPP declined 2.1%, after Morgan Stanley sold 22.5 million shares of the company. Coca-Cola HBC fell 1.4%, after it announced the passing of its Chief Executive, Dimitris Lois. The FTSE 100 advanced 0.4%, to close at 7,468.1, while the FTSE 250 rose 0.4%, to settle at 20,035.4.
US Market Snapshot
US markets closed higher yesterday, boosted by a rally in airlines and auto companies. Delta Air Lines surged 6.6%, after the company reported that its cargo ton miles metric jumped in September from a year earlier. Other airliners, American Airlines Group and United Continental Holdings advanced 5.8% and 6.1%, respectively. General Motors climbed 3.1%, after the carmaker reported a 12.0% increase in its September sales from last year. Peer, Ford Motor rose 2.1%. TravelCenters of America soared 8.4%, after Warren Buffett-led Berkshire Hathaway, up 0.1%, acquired a 38.6% stake in its rival firm, Pilot Flying J. Lennar Corp. edged 4.8% up, as it reported upbeat results for the third quarter. The S&P 500 gained 0.2%, to settle at 2,534.6. The DJIA rose 0.4%, to settle at 22,641.7, while the NASDAQ advanced 0.2%, to close at 6,531.7.
Europe Market Snapshot
Other European markets closed mostly in the green yesterday, as a sell-off in Spanish markets eased and financial stocks gained. Banks, Banco Santander, Bankia and CaixaBank rose 0.2%, 1.4% and 1.6%, respectively. Siemens Gamesa Renewable Energy jumped 5.2%, after it bagged a contract to supply 34 MW of wind turbines in China. French retailers, Carrefour and Casino Guichard Perrachon advanced 2.7% and 4.0%, respectively, after a report showed that Amazon had approached a number of supermarket operators in the country for a possible partnership or acquisition. On the losing side, Iberdrola dropped 1.3%, following a broker downgrade on the stock to ‘Neutral’ from ‘Overweight’. The FTSEurofirst 300 index gained 0.2%, to close at 1,535.4, while the French CAC-40 advanced 0.3%, to settle at 5,367.4. German market was closed yesterday for Unity Day holiday. On Monday, the German DAX Xetra 30 rose 0.6%, to close at 12,902.7.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning, tracking overnight gains in the US equities. In Japan, Japan Display has rallied 24.4%, after news emerged that the company would start mass production of low-cost OLED screens as early as 2019. Fast Retailing has risen 0.9%, after the retailer disclosed that its domestic same-store sales increased 6.3% in September from previous year. On the flipside, Aomori Bank has plunged 8.5%, after it announced a plan to issue 2.6 million new shares through a public offering. In Hong Kong, financial sector stocks, China Life Insurance, Industrial and Commercial Bank of China and AIA Group have advanced 1.3%, 1.4% and 2.1%, respectively. South Korean markets are closed today for public holiday. The Nikkei 225 index is trading 0.2% higher at 20,659.1, while the Hang Seng index is trading 0.7% up at 28369.1.
Key Corporate Announcements Today
AGMs
AdEPT Telecom, Amedeo Air Four Plus Limited, Goodwin plc
Final Dividend Payment Date
Gateley (Holdings), Stagecoach Group
Interim Dividend Payment Date
Trading Announcements
Avacta Group, Topps Tiles
Key Corporate Announcements for Tomorrow
AGMs
Artemis Alpha Trust, Henderson Smaller Companies Inv Trust
Final Ex-Dividend Date
Abbey, Alumasc Group, Hansard Global, Hays, HML Holdings, JPMorgan Mid Cap Inv Trust, Mid Wynd International Inv Trust, Murgitroyd Group, Redde, Smith (DS)
Final Dividend Payment Date
Conviviality, Diageo, PZ Cussons
Interim Ex-Dividend Date
AA, Aberdeen Latin American Income Fund Ltd, Aberdeen Smaller Companies Income Trust, Air Partner, Andrews Sykes Group, Anglo Pacific Group, Arena Events Group, Aviva, Balfour Beatty, Barr (A.G.), BlackRock Latin American Inv Trust, Bodycote, British Land Company, Cambian Group, Capital & Regional, Cello Group, Central Asia Metals, Elecosoft, Fisher (James) & Sons, Hastings Group Holdings, ICG-Longbow Senior Secured UK Property Debt Investments Ltd, IDOX, Invesco Income Growth Trust, Invesco Perpetual Enhanced Income Limited, Johnson Service Group, Judges Scientific, Keywords Studios, Kings Arms Yard VCT, Learning Technologies Group, Lowland Investment Co, Marwyn Value Investors Limited, Mortgage Advice Bureau (Holdings), Murray International Trust, Oakley Capital Investments Ltd. (DI), Phoenix Spree Deutschland Limited Shs NPV, Premier Technical Services Group, Rightmove, RIT Capital Partners, Shires Income, Shore Capital Group Ltd., SIG, Smith & Nephew, SQN Asset Finance Income Fund Limited, SQN Asset Finance Income Fund Limited 'C Shares', SQN Secured Income Fund, StatPro Group, STM Group, Summit Germany Limited, Synthomer, Troy Income & Growth Trust, TT Electronics, Unite Group, WPP, Xpediator
Interim Dividend Payment Date
Centaur Media, Churchill China, JPMorgan American Inv Trust, Maintel Holdings
Special Ex-Dividend Payment Date
F & C UK High Income Trust, Hays, JPMorgan Mid Cap Inv Trust, Next, Symphony International Holdings Ltd.
Quarterly Ex-Dividend Date
F & C UK High Income Trust, Fair Oaks Income Limited 2014 Shs NPV, Fair Oaks Income Limited 2017 Shs NPV, Merchants Trust, Schroder Income Growth Fund, Supermarket Income Reit
Trading Announcements
Ferrexpo, Merlin Entertainments
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one month futures contract is trading 0.66% or $0.37 lower at $55.63 per barrel, ahead of the Energy Information Administration’s weekly oil inventory data, scheduled to be released later today. Yesterday, the contract declined 0.21% or $0.12, to settle at $56.00 per barrel. Meanwhile, the American Petroleum Institute announced that US crude inventories dropped by 4.1 million barrels for the week ended 29 September 2017.
At 0330GMT today, Gold futures contract is trading 0.53% or $6.70 higher at $1278.20 per ounce. Yesterday, the contract declined 0.09% or $1.20, to settle at $1271.50 per ounce, pressured by another record high close by the US stock markets.
Currency
At 0330GMT today, the EUR is trading 0.20% higher against the USD at $1.1768, ahead of the Euro-zone’s services PMI data for September coupled with retail sales figures across the Euro-area for August, set to release today. Also, traders will look forward to a speech by the European Central Bank (ECB) President, Mario Draghi, scheduled later in the day. Yesterday, the EUR strengthened 0.09% versus the USD, to close at $1.1744, after the Euro-zone’s producer price index (PPI) rose more than expected in August.
At 0330GMT today, the GBP is trading 0.23% higher against the USD at $1.3267, ahead of UK’s services sector activity data for September, due to release today. Moreover, the US ISM non-manufacturing PMI along with the ADP employment report, both for September, will be closely assessed by market participants. Yesterday, the GBP fell 0.29% versus the USD, to close at $1.3237, after macroeconomic data showed that Britain’s construction sector contracted for the first time in 13 months in September, raising concerns over the nation’s economy and reducing prospects for an interest rate hike.
Bitcoin
At 0330GMT today, BTC is trading 0.33% lower against the USD at $4296.22. Yesterday, BTC declined 1.97% against the USD to close at $4310.63. Meanwhile, the Chief Executive Officer of BlackRock, Larry Fink, stated that Bitcoin and other cryptocurrencies may help to identify the extent of money laundering happening across the world. Separately, Swiss Financial Market Supervisory Authority, FINMA, is trying to regulate the country’s booming cryptocurrency industry. Moreover, the global bitcoin payment service provider, Bitpay, disclosed that it is steadily approaching $1.0 billion in bitcoin payments processing annually.
Key Economic News
UK construction PMI unexpectedly dropped in September
The construction PMI in the UK dropped unexpectedly to a level of 48.10 in September, compared to market expectations of a steady reading. In the prior month, the construction PMI had recorded a reading of 51.10.
UK BRC shop price index dropped in September
In September, on an annual basis, the BRC shop price index in the UK eased 0.10%. In the previous month, the BRC shop price index had registered a drop of 0.30%.
David Davis: UK will be ready to walk away with no deal if Brexit talks with the EU fail
The Brexit Secretary, David Davis, stated that Britain looks to negotiate a Brexit agreement with the European Union (EU). However, if the Brexit talks fail, UK will be ready to walk away without a deal. Further, Davis warned that any error in the talks could cost them billions of pounds.
BoE FPC Minutes warned about substantial risk of Brexit disruption
According to the Bank of England's (BoE) Financial Policy Committee (FPC) meeting minutes, policymakers warned that Brexit poses “substantial risk” to the ability of British companies to borrow from European banks and to some clearing activity which might have to relocate from London once Brexit takes place. Further, the central bank added that the committee judged the risk of disruption to wholesale UK banking services could be larger than previously estimated.
Euro-zone PPI rose more than expected in August
The producer price index (PPI) registered a rise of 0.30% on a monthly basis in the Euro-zone, in August, more than market expectations for an advance of 0.10%. The PPI had registered an unchanged reading in the prior month.
Italian deficit to GDP (YTD) dropped in 2Q 2017
Deficit to GDP (YTD) in Italy eased to 2.40% in 2Q 2017, compared to a reading of 4.30% in the prior quarter.
Number of people unemployed in Spain increased in September
Number of people unemployed recorded an increase of 27.90 K in Spain, in September, more than market anticipations of an advance of 21.50 K. Number of people unemployed had recorded a gain of 46.40 K in the prior month.
US Redbook index advanced in the last week
On an annual basis, the Redbook index in the US advanced 4.10% in the week ended 29 September 2017. The Redbook index had risen 4.00% in the prior week.
US Redbook index remained unchanged in the last week
In the week ended 29 September 2017, on a MoM basis, the seasonally adjusted Redbook index remained steady in the US. The Redbook index had recorded a flat reading in the previous week.
Japanese consumer confidence index rose in September
Compared to a reading of 43.30 in the prior month the consumer confidence index in Japan climbed to 43.90 in September. Markets were expecting the consumer confidence index to advance to a level of 43.50.
Japanese Markit composite PMI dropped in September
Markit composite PMI in Japan eased to 51.70 in September. In the prior month, Markit composite PMI had recorded a reading of 51.90.