UK Market Snapshot
UK markets closed a tad lower yesterday, amid losses in energy providers after the UK Prime Minister, Theresa May, announced plans to cap utility bills. SSE and Centrica fell 3.2% and 6.1%, respectively. Tesco lost 3.2%, reversing its earlier gains. The retailer stated that it would resume its dividend payment and reported a considerable rise in its pretax profit for the first half of the year. Wm Morrison Supermarkets and J Sainsbury shed 2.0% and 2.4%, respectively. Standard Life Aberdeen lost 2.1%, after proposing a subordinated debt offering. Oil firms, BP and Royal Dutch Shell declined 0.1% and 0.6%, respectively, tracking weakness in crude oil prices. On the brighter side, mining companies Rio Tinto, Glencore and Anglo American advanced 0.6%, 1.6% and 2.4%, respectively. The FTSE 100 marginally declined, to close at 7,467.6, while the FTSE 250 marginally fell, to settle at 20,029.4.
US Market Snapshot
US markets ended higher yesterday, following the release of strong US services sector data for September. Mylan soared 16.2%, as the FDA approved its generic version of Teva Pharmaceutical Industries Ltd.’s blockbuster multiple sclerosis treatment drug ‘Copaxone’. Teva plunged 14.6%. Netflix gained 2.9%, after a leading broker boosted its price target on the stock to $225.0 from $190.0. Caterpillar advanced 1.0%, amid positive comments by a broker on used equipment pricing. Amazon.com added 0.9%, despite the European Commission ordering the e-commerce firm to pay about $300.0 million in back taxes to Luxembourg. On the contrary, Office Depot plummeted 17.7%, after the company announced plans to acquire CompuCom Systems for $1.0 billion and trimmed its profit outlook for 2017. The S&P 500 gained 0.1%, to settle at 2,537.7. The DJIA rose 0.1%, to settle at 22,661.6, while the NASDAQ marginally advanced, to close at 6,534.6.
Europe Market Snapshot
Other European markets finished mostly lower yesterday, as political concerns rose in Spain after Catalan leader reiterated that the region would declare independence in coming days. Spanish lenders, Bankia, CaixaBank and Banco de Sabadell eased 3.7%, 5.0% and 5.7%, respectively. Italian banks, Unione di Banche Italiane and Banco BPM lost 3.8% and 5.3%, respectively. ThyssenKrupp slid 2.5%. The company’s CEO announced that workers would be equally represented following the planned merger of its European steel operations with Tata Steel. On the other hand, German car makers, Volkswagen, Daimler and BMW advanced 0.4%, 0.5% and 2.2%, respectively, after reporting upbeat US sales figures. The FTSEurofirst 300 index declined 0.1%, to close at 1,533.4. Among other European markets, the German DAX Xetra 30 rose 0.5%, to close at 12,970.5, while the French CAC-40 shed 0.1%, to settle at 5,363.2.
Asia Market Snapshot
Markets in Asia are trading slightly higher this morning, amid thin trading volumes. In Japan, Tokyo Electric Power Company Holding has advanced 1.7%, after it received an initial safety approval from Japan’s Nuclear Regulation Authority to restart two reactors at the world’s biggest nuclear power plant. Aeon has gained 1.6%, after the retailer disclosed plans to further cut prices, as restructuring at its struggling general merchandising stores boosted its first half profits to an 11-year high. On the flipside, financial sector stocks, Mitsubishi UFJ Financial Group and Dai-ichi Life Holdings have dropped 0.3% and 1.9%, respectively. Meanwhile, equity markets in China, Hong Kong and South Korea are closed today for public holidays. The Nikkei 225 index is trading marginally higher at 20,633.1. Yesterday, the Hang Seng index rose 0.7% to close at 28,379.2 and the Kospi index is shut since last Friday.
Key Corporate Announcements Today
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
Key Corporate Announcements for Tomorrow
AGMs
Abbey
Final Dividend Payment Date
AdEPT Telecom, Fletcher King, Goodwin plc, Jupiter Green Inv Trust
Interim Ex-Dividend Date
Banco Bilbao Vizcaya Argentaria SA
Interim Dividend Payment Date
AcenciA Debt Strategies Ltd., Admiral Group, Aggreko, Antofagasta, Camellia, Capital Drilling Ltd. (DI), Carr's Group, Clarke (T.), Crest Nicholson Holdings, Devro, Drax Group, ECO Animal Health Group, Eurocell, F&C Managed Portfolio Trust Income Shares, Glanbia, Gocompare.com Group, Grafton Group Units, Greggs, H&T Group, Impellam Group, InterContinental Hotels Group, International Personal Finance, Irish Continental Group Units, IWG, JPMorgan Global Growth & Income, Kingspan Group, LondonMetric Property, Melrose Industries, Property Franchise Group, Standard Life Equity Income Trust, Stobart Group Ltd., Tex Holdings
Quarterly Payment Date
Aberdeen Diversified Income and Growth Trust, Blackrock North American Income Trust, Land Securities Group
Quarterly Ex-Dividend Date
Marsh & Mclennan Cos Inc.
Trading Announcements
Motorpoint Group
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one month futures contract is trading 0.18% or $0.10 higher at $55.90 per barrel. Yesterday, the contract declined 0.36% or $0.20, to settle at $55.80 per barrel, after a report showed that US crude exports climbed to 1.98 million barrels per day, thus exacerbating worries over global supply glut. However, losses were capped after the Energy Information Administration reported that US crude inventories fell by 6.0 million barrels for the week ended 29 September 2017.
At 0330GMT today, Gold futures contract is trading 0.26% or $3.30 higher at $1277.00 per ounce. Yesterday, the contract advanced 0.17% or $2.20, to settle at $1273.70 per ounce, amid weakness in the US Dollar.
Currency
At 0330GMT today, the EUR is trading a tad lower against the USD at $1.1756, ahead of the ECB account of the monetary policy meeting, due to release today. Traders will also look forward to the US durable goods orders, factory orders and trade balance data, all for August, scheduled to release later in the day. Yesterday, the EUR strengthened 0.13% versus the USD, to close at $1.1759, following better than expected services sector data across the Euro-zone for September. The US Dollar declined against its peers amid reports that Fed Governor, Jerome Powell, was favoured over Kevin Warsh as the new Fed Chair by US Treasury Secretary, Steven Mnuchin.
At 0330GMT today, the GBP is trading 0.07% lower against the USD at $1.3239. Yesterday, the GBP gained 0.08% versus the USD, to close at $1.3248, after data showed that UK’s services PMI unexpectedly rose in September.
Bitcoin
At 0330GMT today, BTC is trading 1.09% lower against the USD at $4173.59. Yesterday, BTC declined 2.11% against the USD to close at $4219.64. Meanwhile, news surfaced that Japanese energy supplier, Remixpoint, has launched a new electricity service with bitcoin payments integrated to serve customers all over Japan. Meanwhile, the Chairman of UBS, Axel Weber, stated that he does not believe Bitcoin meets the full definition of a currency. Additionally, Hong Kong-based bitcoin exchange, Tidebit, is actively seeking to attract Chinese investors who have been forced from China’s markets after the central government’s recent cryptocurrency crackdown.
Key Economic News
UK official reserves climbed in September
Official reserves climbed $554.00 million in the UK, in September. In the prior month, official reserves had registered a rise of $1603.00 million.
UK services PMI surprisingly rose in September
In September, the services PMI in the UK advanced unexpectedly to a level of 53.60, compared to market expectations of a steady reading. In the prior month, the services PMI had recorded a level of 53.20.
Euro-zone services PMI advanced in September
In September, the final services PMI registered a rise to 55.80 in the Euro-zone, higher than market expectations of a rise to a level of 55.60. In the prior month, services PMI had registered a level of 54.70. The preliminary figures had indicated an advance to 55.60.
Euro-zone retail sales rose less than expected in August
In August, the seasonally adjusted retail sales recorded a rise of 1.20% in the Euro-zone on an annual basis, compared to a revised rise of 2.30% in the prior month. Market expectation was for retail sales to rise 2.60%.
Euro-zone retail sales unexpectedly fell in August
On a MoM basis, the seasonally adjusted retail sales unexpectedly dropped 0.50% in the Euro-zone, in August, less than market expectations for an advance of 0.30%. In the prior month, retail sales had recorded a drop of 0.30%.
Euro-zone composite PMI advanced in September
The final composite PMI advanced to 56.70 in September, in the Euro-zone, compared to a level of 55.70 in the previous month. The preliminary figures had also recorded an advance to 56.70. Markets were expecting composite PMI to remain at 56.70.
German services PMI climbed in September
In September, the final services PMI registered a rise to 55.60 in Germany, at par with market expectations. The preliminary figures had also recorded a rise to 55.60. In the previous month, services PMI had recorded a reading of 53.50.
German Markit composite PMI advanced in September
Compared to a level of 55.80 in the prior month the final Markit composite PMI recorded a rise to 57.70 in September, in Germany. The preliminary figures had indicated a rise to 57.80. Market anticipation was for Markit composite PMI to advance to 57.80.
French services PMI climbed in September
In September, the final services PMI recorded a rise to 57.00 in France, lower than market expectations of an advance to 57.10. The preliminary figures had indicated a rise to 57.10. In the previous month, services PMI had registered a level of 54.90.
Italian services PMI slid in September
In September, the services PMI eased to 53.20 in Italy, compared to market expectations of a drop to 55.00. The services PMI had recorded a reading of 55.10 in the prior month.
Spanish services PMI climbed surprisingly in September
The services PMI in Spain rose unexpectedly to a level of 56.70 in September, compared to a level of 56.00 in the previous month. Markets were anticipating the services PMI to ease to 55.50.
US Markit services PMI dropped in September
In September, the final Markit services PMI fell to a level of 55.30 in the US, compared to a level of 56.00 in the previous month. The preliminary figures had indicated a fall to 55.10. Markets were anticipating Markit services PMI to drop to a level of 55.10.
US non-manufacturing PMI advanced in September
The non-manufacturing PMI advanced to 59.80 in the US, in September, compared to market expectations of a rise to 55.50. The non-manufacturing PMI had registered a level of 55.30 in the previous month.
US mortgage applications dropped in the last week
Mortgage applications in the US eased 0.40% on a weekly basis, in the week ended 29 September 2017. In the previous week, mortgage applications had dropped 0.50%.
Private sector employment in the US increased in September
The private sector employment in the US climbed by 135.00 K in September, following a revised increase of 228.00 K in the previous month. Markets were expecting the private sector employment to advance 135.00 K.
US Markit composite PMI dropped in September
The final Markit composite PMI dropped to 54.80 in the US, in September, compared to a level of 55.30 in the previous month. The preliminary figures had recorded a drop to 54.60.