UK Market Snapshot
UK markets finished in negative territory yesterday, weighed down by losses in mining sector stocks. Antofagasta, Rio Tinto and Anglo American declined 1.7%, 2.2% and 3.4%, respectively, following China’s disappointing services PMI data for September. EasyJet dropped 2.1%, after a leading broker cut its price target for the stock to £15.0 from £15.5. Smith & Nephew slipped 0.6%, after the company announced that its Chief Executive Officer, Olivier Bohuon, would step down from his role by the end of 2018. Bucking the trend, Millennium & Copthorne Hotels rallied 23.1%, after Singapore’s City Developments offered to purchase the remaining 34.8% shares in the company for £624.0 million. Precious metal miners, Randgold Resources, Acacia Mining and Hochschild Mining climbed 0.9%, 3.7% and 4.3%, respectively, tracking gains in gold prices. The FTSE 100 declined 0.2%, to close at 7,507.9, while the FTSE 250 fell 0.3%, to settle at 20,102.6.
US Market Snapshot
US markets closed lower yesterday, led by losses in healthcare, industrial and financial sector stocks. General Electric dropped 3.9%, following several senior management and board changes, including surprise retirement of its CFO. Medtronic declined 3.6%, after the company warned that its profit for the second quarter would be affected after Hurricane Maria hit its operations in Puerto Rico. Cinema stocks, Regal Entertainment Group and AMC Entertainment Holdings tumbled 4.6% and 7.9%, respectively, after lower than expected tickets were sold over the weekend for science fiction sequel ‘Blade Runner 2049’. On the flipside, Wal-Mart Stores advanced 1.9%, after the retailer pledged to speed up the process for in-store returns of items bought on its website. The S&P 500 slipped 0.2%, to settle at 2,544.7. The DJIA shed 0.1%, to settle at 22,761.1, while the NASDAQ slid 0.2%, to close at 6,579.7.
Europe Market Snapshot
Other European markets finished higher yesterday, with the German DAX Xetra 30 index notching its new record high level as political turmoil over Catalonia eased and German industrial production beat market forecast in August. Accor edged 0.8% up, after the company offered A$1.2 billion to fully acquire Australian hotel operator, Mantra Group. On the losing side, K+S plunged 7.3%, after the company announced its plans to integrate its potash and salt units as part of a strategic overhaul. bpost declined 3.4%, after the company stated that it would acquire the US logistics business, Radial, for $820.0 million. Linde slipped 1.7%, after German investors’ association DSW recommended that the company’s shareholders should reject the planned merger with US rival Praxair. The FTSEurofirst 300 index gained 0.2%, to close at 1,533.8. Among other European markets, the German DAX Xetra 30 rose 0.2%, to close at 12,976.4, while the French CAC-40 advanced 0.1%, to settle at 5,365.8.
Asia Market Snapshot
Markets in Asia are trading higher this morning. In Japan, Hino Motors and Taisei Corp. have gained 2.6% and 3.9%, respectively. Seven & i Holdings has advanced 2.2%, after a report indicated that the company would report a significant growth in its operating profit for the March-August period. On the contrary, insurance firms, MS&AD Insurance Group Holdings and Sompo Holdings have dropped 4.3% and 5.3%, respectively. In Hong Kong, crude major, CNOOC has added 0.2%, while peer PetroChina has lost 0.2%. In South Korea, index majors, Samsung Electronics and SK Hynix have climbed 4.3% and 7.5%, respectively. The Nikkei 225 index is trading 0.4% higher at 20,769.8. The Hang Seng index is trading marginally up at 28,331.3, while the Kospi index is trading 1.9% higher at 2,439.4.
Key Corporate Announcements Today
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
Key Corporate Announcements for Tomorrow
AGMs
Coral Products, Hargreaves Lansdown
Interim Dividend Payment Date
888 Holdings, Chesnara, Pagegroup
Special Dividend Payment Date
Pagegroup
Trading Announcements
Countryside Properties, Mondi, Quiz
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one month futures contract is trading 0.11% or $0.06 higher at $55.85 per barrel, ahead of the American Petroleum Institute’s weekly oil inventory data, scheduled to be released later today. Yesterday, the contract climbed 0.31% or $0.17, to settle at $55.79 per barrel, after OPEC’s secretary-general, Mohammad Barkindo, signalled that additional measures could be taken in 2018 in order to rebalance the crude oil market.
At 0330GMT today, Gold futures contract is trading 0.59% or $7.60 higher at $1289.40 per ounce. Yesterday, the contract advanced 0.80% or $10.20, to settle at $1281.80 per ounce, amid renewed geopolitical tensions between the US and North Korea as the two countries continued to exchange verbal threats.
Currency
At 0330GMT today, the EUR is trading 0.26% higher against the USD at $1.1771, ahead of German trade balance numbers for August, scheduled to release in sometime. Yesterday, the EUR rose 0.09% versus the USD, to close at $1.1740, after the Euro-zone investor confidence rose more than expected for October.
At 0330GMT today, the GBP is trading 0.12% higher against the USD at $1.3158, ahead of UK’s manufacturing and industrial production data for August, due to release in a few hours. Additionally, UK trade balance for August and the NIESR GDP estimate for the three months to September, due later today, would be monitored by traders. Yesterday, the GBP strengthened 0.58% versus the USD, to close at $1.3142, on news that the UK Prime Minister, Theresa May, could demote Foreign Secretary, Boris Johnson to thwart attempts to oust her.
Bitcoin
At 0330GMT today, BTC is trading 0.35% higher against the USD at $4789.19. Yesterday, BTC advanced 3.79% against the USD to close at $4772.64. In a major development, Japanese renewable energy provider, Looop, announced an electricity plan aimed at reducing costs for bitcoin and other cryptocurrency miners. Separately, car sharing firm, Drivezy, which recently raised $10.0 million, announced that it would use part of these funds to start accepting bitcoin payments on their platform. Meanwhile, news emerged that France is moving swiftly to frame rules for covering token sales or initial coin offerings (ICOs).
Key Economic News
UK retail sales across all sectors rose in September
In September, on an annual basis, retail sales across all sectors in the UK registered a rise of 1.90%. Retail sales across all sectors had climbed 1.30% in the previous month.
Theresa May: The ball is in EU’s court
The UK Prime Minister, Theresa May, warned the British public to prepare for crashing out of the European Union (EU) with no deal, setting out emergency plans to avoid border meltdown for businesses and travelers. Further, May noted that UK would publish two white papers on trade and customs after Brexit.
Euro-zone investor confidence index advanced in October
In the Euro-zone, the investor confidence index registered a rise to 29.70 in October, compared to a level of 28.20 in the prior month. Market expectation was for the investor confidence index to climb to a level of 28.50.
German industrial production rose more than expected in August
On a MoM basis, the seasonally adjusted industrial production in Germany advanced 2.60% in August, higher than market expectations for an advance of 0.90%. Industrial production had recorded a revised drop of 0.10% in the prior month.
German industrial production rose more than expected in August
The non-seasonally & working day adjusted industrial production in Germany climbed 4.70% in August on a YoY basis, compared to a revised advance of 4.20% in the previous month. Markets were anticipating industrial production to advance 2.90%.
French business sentiment index steadied in September
The business sentiment index remained unchanged at a level of 104.00 in September, in France. Market anticipation was for the business sentiment index to advance to 105.00.
Japanese current account surplus expanded in August
The non-seasonally adjusted current account surplus in Japan expanded to ¥2380.40 billion in August, compared to a current account surplus of ¥2320.00 billion in the previous month. Market anticipation was for the nation to register a current account surplus of ¥2223.30 billion.
Japanese adjusted (total) current account surplus widened in August
Japan has reported adjusted (total) current account surplus of ¥2266.90 billion in August, from a adjusted (total) current account surplus of ¥2032.90 billion in the previous month. Markets were expecting an adjusted (total) current account surplus of ¥1978.60 billion.
Japanese (BOP basis) trade surplus dropped in August
(BOP basis) trade surplus in Japan narrowed to ¥318.70 billion in August, compared to a (BOP basis) trade surplus of ¥566.60 billion in the previous month. Market anticipation was for the nation to record a (BOP basis) trade surplus of ¥264.90 billion.