UK Market Snapshot
UK markets finished in positive territory on Friday, as the Pound slumped against its peers amid growing speculation that the UK government would call a snap election. Tobacco companies, Imperial Brands and British American Tobacco advanced 0.2% and 1.6%, respectively. Healthcare firms, GlaxoSmithKline and AstraZeneca gained 0.3% and 1.0%, respectively. Miners, Anglo American, BHP Billiton and Rio Tinto rose 0.5%, 0.6% and 0.9%, respectively. Ultra Electronics Holdings edged 0.3% up, after Sparton shareholders approved their already planned merger. On the losing side, easyJet declined 1.6%. Meanwhile, the airline revealed that its headline profit for 2017 would come at the upper end of its forecasted range following record passenger numbers during the summer season. The FTSE 100 advanced 0.2%, to close at 7,522.9, while the FTSE 250 rose 0.4%, to settle at 20,166.5.
US Market Snapshot
US markets closed mostly lower on Friday, after the US economy lost jobs for the first time since 2010 in September. Costco Wholesale plunged 6.0%, after the company reported a fall in its gross margin for the fourth quarter. Drugstore stocks, Walgreens Boots Alliance and CVS Health declined 4.9%, while peer Rite Aid tumbled 5.8%, after a report indicated that Amazon.com, up 0.9%, is considering entering into the prescription drug sales market. Bucking the trend, Yum China Holdings, advanced 2.1%, after the company announced its first dividend and an increased stock-buyback plan. The company also stated that President and Chief Operating Officer, Joey Wat would succeed current CEO, Micky Pant in March 2018. The S&P 500 slipped 0.1%, to settle at 2,549.3. The DJIA marginally shed to settle at 22,773.7, while the NASDAQ advanced 0.1%, to close at 6,590.2.
Europe Market Snapshot
Other European markets ended in the red on Friday, amid current political turmoil in Spain and dismal US jobs report. Ryanair Holdings dropped 2.9%, after the airline’s CEO, Michael O’Leary, promised to improve pay and career prospects for the airline’s 4,200 pilots in an attempt to ease the recent cancellation tensions. Spanish lenders, CaixaBank and Banco de Sabadell declined 0.6% and 1.9%, respectively. On the flipside, Renault edged 0.5% up, after the carmaker published its strategic six-year plan which targets revenues of more than €70.0 billion by 2022. Daimler added 0.2%, after the German automaker’s Mercedes-Benz group sold more vehicles in September, helped by an increase in SUV sales and a rise in Chinese demand. The FTSEurofirst 300 index declined 0.4%, to close at 1,530.8. Among other European markets, the German DAX Xetra 30 slid 0.1%, to close at 12,955.9, while the French CAC-40 shed 0.4%, to settle at 5,359.9.
Asia Market Snapshot
Markets in Asia are trading lower this morning, after data showed that China’s Caixin services PMI dropped to a 21 month low level in September. Meanwhile, markets in Japan and South Korea are closed today on account of public holidays. In Hong Kong, property stocks, Longfor Properties, Sunac China Holdings and Agile Group Holdings have declined 2.6%, 4.4% and 5.7%, respectively, amid growing concerns over weak sales in the first and second-tier cities. Automakers, Brilliance China Automotive Holding and Geely Automobile Holdings have lost 2.9% and 3.7%, respectively. Gaming stocks, Melco International Development, Sands China and Galaxy Entertainment Group have fallen 1.8%, 2.3% and 2.7%, respectively, after fewer than expected tourists visited Macau during Golden Week holiday. The Hang Seng index is trading 0.3% down at 28,371.8. On Friday, the Nikkei 225 index rose 0.3%, to close at 20,690.7.
Key Corporate Announcements Today
AGMs
1pm, Avengardco Investments Public Ltd GDR, AfriAg Global
EGMs
Vietnam Infrastructure Limited Private Eqty Shs
Final Dividend Payment Date
Henderson Smaller Companies Inv Trust, UniVision Engineering Ltd.
Interim Dividend Payment Date
Trading Announcements
Trinity Mirror, City of London Investment Group
Key Corporate Announcements for Tomorrow
AGMs
Diverse Income Trust (The), Mortice Ltd. (DI), Scancell Holdings
Final Dividend Payment Date
Interim Dividend Payment Date
Banco Bilbao Vizcaya Argentaria SA, Holders Technology, Lighthouse Group
Trading Announcements
BAE Systems, easyHotel, Marston's, Domino's Pizza Group
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.16% or $0.09 higher at $55.71 per barrel. On Friday, the contract declined 2.42% or $1.38, to settle at $55.62 per barrel, as investors weighed the impact of the Tropical Storm Nate on the Gulf of Mexico’s energy infrastructure in the US. Meanwhile, Baker Hughes reported that the number of active US oil rigs fell by 2 to 748 last week.
At 0330GMT today, Gold futures contract is trading 1.10% or $14.00 higher at $1285.60 per ounce, amid concerns that North Korea is preparing for another long-range missile test. On Friday, the contract advanced 0.13% or $1.70, to settle at $1271.60 per ounce, as the US Dollar lost ground following weaker than expected nonfarm payrolls data for September.
Currency
At 0330GMT today, the EUR is trading 0.08% higher against the USD at $1.1739, ahead of the Euro-zone’s Sentix investor confidence survey for October and Germany’s industrial production data for August, both set to release in a few hours. On Friday, the EUR strengthened 0.16% versus the USD, to close at $1.1730, after Germany’s factory orders rebounded on a monthly basis in August, marking its biggest increase since December 2016.
At 0330GMT today, the GBP is trading 0.18% higher against the USD at $1.3090. On Friday, the GBP weakened 0.40% versus the USD, to close at $1.3066. Meanwhile, UK’s Halifax house prices grew at their fastest pace since February in the three months ended September. In other economic news, the US unemployment rate unexpectedly dropped to its lowest level since June 2007 for September.
Bitcoin
At 0330GMT today, BTC is trading 6.57% higher against the USD at $4624.57. On Friday, BTC advanced 0.55% against the USD to close at $4339.44. In a major development, Bitcoin exchange, Coinbase, announced that it will support both competing blockchains after the proposed SegWit2x hard fork, scheduled for November. Meanwhile, Altcoin Exchange performed the first atomic swap between the Ethereum and Bitcoin blockchains, thus taking its first step towards creating a trustless exchange process.
Key Economic News
UK Halifax house price index unexpectedly climbed in September
On a MoM basis, in the UK, the Halifax house price index registered an unexpected rise of 0.80% in September, higher than market expectations for an unchanged reading. In the previous month, the Halifax house price index had advanced by a revised 1.50%.
UK Halifax house price index rose more than expected in the July-September 2017 period
The Halifax house price index climbed 4.00% on an annual basis in the July-September 2017 period, in the UK, higher than market expectations for an advance of 3.60%. The Halifax house price index had climbed 2.60% in the June-August 2017 period.
German factory orders rose more than expected in August
On a YoY basis, in Germany, the non-seasonally adjusted factory orders climbed 7.80% in August, higher than market expectations for a rise of 4.70%. Factory orders had risen by a revised 5.40% in the previous month.
German factory orders advanced more than expected in August
In Germany, the seasonally adjusted factory orders rose 3.60% on a MoM basis in August, higher than market expectations for a rise of 0.70%. In the previous month, factory orders had dropped by a revised 0.40%.
French current account deficit dropped in August
Current account deficit in France dropped to €1.50 billion in August. France had posted a revised current account deficit of €4.30 billion in the prior month.
French budget deficit rose in August
Budget deficit in France rose to €93.00 billion in August, compared to a budget deficit of €83.80 billion in the previous month.
French trade deficit narrowed in August
Trade deficit in France narrowed to €4.51 billion in August, from a revised trade deficit of €5.84 billion in the previous month. Markets were expecting the nation to register a trade deficit of €5.40 billion.
Italian retail sales surprisingly fell in August
On a monthly basis, the seasonally adjusted retail sales registered an unexpected drop of 0.30% in Italy, in August, lower than market expectations for an advance of 0.20%. In the prior month, retail sales had fallen 0.20%.
Italian retail sales surprisingly fell in August
The non-seasonally adjusted retail sales in Italy unexpectedly eased 0.50% in August on an annual basis, compared to a revised fall of 0.40% in the prior month. Market anticipation was for retail sales to advance 0.80%.
Spanish calendar adjusted industrial output rose more than expected in August
In August, the calendar adjusted industrial output in Spain advanced 1.80% on a YoY basis, compared to an advance of 1.90% in the previous month. Markets were anticipating the calendar adjusted industrial output to rise 1.00%.
Swiss foreign currency reserves advanced in September
Foreign currency reserves in Switzerland advanced to CHF 724.40 billion in September. Foreign currency reserves had registered a revised reading of CHF 716.90 billion in the previous month.
US wholesale inventories rose less than expected in August
In the US, the seasonally adjusted final wholesale inventories registered a rise of 0.90% on a MoM basis in August, lower than market expectations for a rise of 1.00%. The wholesale inventories had recorded a rise of 0.60% in the previous month. The preliminary figures had indicated a rise of 1.00%.
Household employment in the US advanced in September
Household employment in the US climbed by 906.00 K in September. Household employment had recorded a decline of 74.00 K in the previous month.
Non-farm payrolls in the US surprisingly declined in September
In the US, non-farm payrolls eased unexpectedly by 33.00 K in September, compared to market expectations of an advance of 80.00 K. Non-farm payrolls had recorded a revised increase of 169.00 K in the previous month.
US consumer credit rose less than expected in August
Consumer credit advanced $13.07 billion in the US in August, compared to a revised rise of $17.72 billion in the previous month. Markets were expecting consumer credit to climb $15.54 billion.
US average weekly hours of all employees remained steady in September
Average weekly hours of all employees remained flat at 34.40 in the US, in September, at par with market expectations.
US average hourly earnings of all employees advanced more than expected in September
Average hourly earnings of all employees in the US advanced 0.50% in September on a monthly basis, higher than market expectations for an advance of 0.30%. In the prior month, average hourly earnings of all employees had recorded a revised rise of 0.20%.
US underemployment rate declined in September
Compared to a reading of 8.60% in the previous month underemployment rate in the US fell to a level of 8.30% in September.
US average hourly earnings of all employees rose more than expected in September
Average hourly earnings of all employees advanced 2.90% in the US on a YoY basis in September, more than market expectations for an advance of 2.60%. In the previous month, average hourly earnings of all employees had climbed by a revised 2.70%.
Manufacturing payrolls in the US unexpectedly dropped in September
Manufacturing payrolls in the US eased unexpectedly by 1.00 K in September, compared to market anticipations of an advance of 10.00 K. Manufacturing payrolls had recorded a revised gain of 41.00 K in the prior month.
US unemployment rate unexpectedly fell in September
In September, unemployment rate in the US recorded an unexpected drop to a level of 4.20%, lower than market expectations of an unchanged reading. In the prior month, unemployment rate had registered a level of 4.40%.
Private payrolls in the US surprisingly eased in September
Private payrolls registered an unexpected drop of 40.00 K in the US, in September, less than market anticipations of an advance of 75.00 K. Private payrolls had recorded a revised increase of 164.00 K in the previous month.
Net number of people employed in Canada rose in September
The net number of people employed in Canada climbed by 10.00 K in September, compared to an advance of 22.20 K in the previous month. Market expectation was for the net number of people employed to advance 12.00 K.
Canadian Ivey PMI unexpectedly advanced in September
In September, the seasonally adjusted Ivey PMI in Canada advanced unexpectedly to 59.60, compared to a level of 56.30 in the prior month. Market anticipation was for Ivey PMI to drop to 56.00.
Number of full time employment in Canada rose in September
The number of full time employment climbed by 112.00 K in Canada, in September, following a loss of 88.10 K in the prior month.
Canadian participation rate fell in September
In Canada, the participation rate recorded a drop to 65.60% in September. In the previous month, the participation rate had registered a reading of 65.70%.
Part time employment in Canada dropped in September
Part time employment in Canada registered a drop of 102.00 K in September. Part time employment had recorded an increase of 110.40 K in the previous month.
Canadian unemployment rate steadied in September
The unemployment rate remained unchanged at a level of 6.20% in September, in Canada, at par with market expectations.
Japanese leading economic index rose in August
In August, the flash leading economic index climbed to 106.80 in Japan, compared to a reading of 105.20 in the prior month. Market anticipation was for the leading economic index to climb to a level of 107.10.
Japanese coincident index advanced in August
The preliminary coincident index registered a rise to 117.60 in Japan, in August, compared to a reading of 115.70 in the prior month. Markets were anticipating the coincident index to advance to 117.50.
Chinese Caixin composite PMI dropped in September
In China, Caixin composite PMI recorded a drop to 51.40 in September. In the prior month, Caixin composite PMI had registered a reading of 52.40.
Chinese Caixin/Markit services PMI index fell in September
The Caixin/Markit services PMI index fell to a level of 50.60 in China, in September. In the previous month, the Caixin/Markit services PMI index had registered a reading of 52.70.