UK Market Snapshot
UK markets finished mixed yesterday. Mondi plunged 7.8%, after the company warned that underlying performance for the full year would be slightly below market estimates due to cost pressures and negative currency impacts. Meanwhile, the company posted a rise in its underlying operating profit for the third quarter. Miners, Rio Tinto and BHP Billiton dropped 1.1% and 2.2%, respectively. Next declined 1.3%, following a broker downgrade on the stock to ‘Underweight’ from ‘Equal weight’. On the flipside, Dunelm Group jumped 6.3%, after the company reported a significant rise in its revenue for the first quarter, helped by favourable weather comparatives and strong growth across the business. Smith & Nephew climbed 3.1%, after a report indicated that hedge fund, Elliott Management, has taken a stake in the company. The FTSE 100 declined 0.1%, to close at 7,533.8, while the FTSE 250 rose 0.1%, to settle at 20,167.8.
US Market Snapshot
US markets finished in positive territory yesterday, led by gains in real estate, utilities, and consumer staples stocks. Meanwhile, the FOMC minutes indicated that the Federal Reserve (Fed) policymakers supported another interest rate hike in December. BlackRock gained 1.8%, after the company’s profit and revenue surpassed market estimates in the third quarter due to growth in asset and base fee. Delta Air Lines edged 0.7% up, following upbeat results for the third quarter. Alibaba Group Holding added 0.9%, after the company announced that it would spend $15.0 billion to build overseas research hUBS in order to keep pace with its Western rivals. Bucking the trend, Micron Technology slid 0.9%, after the company announced that it would sell around $1.0 billion in fresh stock. The S&P 500 gained 0.2%, to settle at 2,555.2. The DJIA rose 0.2%, to settle at 22,872.9, while the NASDAQ advanced 0.2%, to close at 6,603.5.
Europe Market Snapshot
Other European markets ended mixed yesterday. Spanish equities recovered from their losses amid easing tensions between Catalonia and Madrid, after Catalan leader, Carles Puigdemont, suspended independence plans. Swiss lenders, UBS Group and Credit Suisse Group slipped 0.3% and 0.6%, respectively. On the brighter side, GEA Group jumped 5.8%, after Elliott Management disclosed that it has taken a stake in the former. Gerresheimer rose 0.7%, after the healthcare company posted a slight increase in its adjusted EBITDA margin in the third quarter. Energy giants, Eni and TOTAL added 0.5% and 0.7%, respectively, tracking gains in oil prices. The FTSEurofirst 300 index marginally declined to close at 1,533.7. Among other European markets, the German DAX Xetra 30 rose 0.2%, to close at 12,970.7, while the French CAC-40 marginally shed to settle at 5,362.4.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning, tracking overnight gains on Wall Street. In Japan, Aomori Bank has surged 13.2%, after the company stated that it will scrap its plan of issuing new shares. Toshiba has climbed 4.1%, after the Tokyo Stock Exchange removed the company from its delisting watchlist due to improved internal controls. In Hong Kong, brokerage firms, Haitong Securities and CITIC Securities have added 0.3% and 0.9%, respectively. In contrast, Sunny Optical Technology Group has declined 3.5%, after a broker commented that its handset lens shipment missed estimates in September. In South Korea, Hyundai Motor and Kia Motors have dropped 1.3% and 2.6%, respectively. The Nikkei 225 index is trading 0.5% higher at 20,978.6. The Hang Seng index is trading 0.2% up at 28,434.2, while the Kospi index is trading 1.3% lower at 2,426.0.
Key Corporate Announcements Today
AGMs
Sky
Final Ex-Dividend Date
AIREA, Begbies Traynor Group, City of London Investment Group, Close Brothers Group, CPL Resources, Daejan Holdings, Photo-Me International, Schroder Japan Growth Fund, Strategic Equity Capital
Final Dividend Payment Date
South32 Limited (DI), United Carpets Group
Interim Ex-Dividend Date
Braime (T.F.& J.H.) Holdings, Braime (T.F.& J.H.) Holdings (Non-Voting), Caledonia Mining Corporation (DI), Cenkos Securities, Centrica, Charles Taylor, Curtis Banks Group, Downing Four VCT DP2011 Gen A Shs, Downing Four VCT DP2011 Str, Downing Four VCT DP2011 Str A Shs, Downing Four VCT DP2011Gen, Downing Four VCT DSO 'D' Shs, F&C Private Equity Trust, Finsbury Growth & Income Trust, HSBC Holdings, Kerry Group 'A' Shares, Manx Telecom, Morgan Sindall Group, NB Global Floating Rate Income Fund Ltd GBP, NB Global Floating Rate Income Fund Ltd USD, North American Income Trust (The), OneSavings Bank, Puma Vct 8, Restore, River and Mercantile Group, Saga, Scisys, Spectris, Spirax-Sarco Engineering, Sprue Aegis, Staffline Group, Tandem Group, Tesco, TP ICAP, Trans-Siberian Gold
Interim Dividend Payment Date
Forterra, Macfarlane Group, Restaurant Group, UBM, Xaar, Zotefoams
Special Ex-Dividend Payment Date
River and Mercantile Group
Quarterly Payment Date
GlaxoSmithKline, Total SA, XP Power Ltd. (DI)
Quarterly Ex-Dividend Date
F&C Commercial Property Trust Ltd., JPMorgan Asian Investment Trust, Middlefield Canadian Income PCC, Primary Health Properties
Trading Announcements
Hays
Key Corporate Announcements for Tomorrow
AGMs
Papua Mining, Shepherd Neame
Final Dividend Payment Date
Interim Dividend Payment Date
Alpha Fx Group, BlackRock Commodities Income Inv Trust, Communisis, Computacenter, Concurrent Technologies, esure Group, Franchise Brands, G4S, Harworth Group, Highcroft Investment, Highland Gold Mining Ltd., Intertek Group, JPMorgan European Inv Trust Growth Shares, JPMorgan European Investment Trust, Martin Currie Global Portfolio Trust, Personal Assets Trust, PPHE Hotel Group Ltd, Robert Walters, RPS Group, RSA Insurance Group, Ruffer Investment Company Ltd Red PTG Pref Shares, SafeCharge International Group Limited (DI), Sanne Group, Total Produce, XLMedia
Special Dividend Payment Date
esure Group
Quarterly Payment Date
Regional REIT Limited, Schlumberger Ltd.
Trading Announcements
Ashmore group, Hargreaves Lansdown, Man Group
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.61% or $0.35 lower at $56.59 per barrel, ahead of the Energy Information Administration’s weekly oil inventory data, scheduled to be released later today. Yesterday, the contract climbed 0.58% or $0.33, to settle at $56.94 per barrel, after OPEC lifted its outlook for crude oil demand for 2017 and 2018. Meanwhile, the American Petroleum Institute reported that US crude stockpiles advanced by 3.1 million barrels for the week ended 06 October 2017.
At 0330GMT today, Gold futures contract is trading 0.86% or $11.10 higher at $1296.90 per ounce. Yesterday, the contract declined 0.37% or $4.80, to settle at $1285.80 per ounce, reversing its previous session gains, on rising expectations of a Fed interest rate hike in December.
Currency
At 0330GMT today, the EUR is trading 0.13% higher against the USD at $1.1874, ahead of the Euro-zone’s industrial production data for August, set to release in a few hours. Investors will also closely await a speech by the European Central Bank President, Mario Draghi, scheduled later today. Moreover, the US weekly initial jobless claims data, due later in the day, would be on investors’ radar. Yesterday, the EUR strengthened 0.43% versus the USD, to close at $1.1859. The US Dollar lost ground against its peers after the number of job openings in the country dropped more than expected in August.
At 0330GMT today, the GBP is trading 0.21% higher against the USD at $1.3251. Yesterday, the GBP rose 0.15% versus the USD, to close at $1.3223, extending its previous session gains.
Bitcoin
At 0330GMT today, BTC is trading 0.51% higher against the USD at $4843.44. Yesterday, BTC advanced 0.92% against the USD to close at $4819.07. In a major development, the Kingdom of Cambodia began the first Bitcoin Point-of-Sale (PoS) merchant gateway. Separately, the issuer of the world’s first bitcoin exchange-traded notes, XBT Provider, would launch two Ethereum exchange-traded notes, Ether Tracker One (COINETH) and Ether Tracker Euro (COINETHE). Meanwhile, Abu Dhabi government released guidelines on digital currencies and initial coin offerings (ICOs) through its financial markets regulator.
Key Economic News
UK house price balance remained steady in September
House price balance remained unchanged at 6.00 % in the UK, in September, compared to market expectations of a fall to 4.00 %.
Spanish CPI advanced as expected in September
In September, the final consumer price index (CPI) in Spain, registered a rise of 1.80% on a YoY basis, in line with market expectations. In the prior month, the CPI had risen 1.60%. The preliminary figures had also indicated a rise of 1.80%.
Spanish HICP advanced as expected in September
In September, the final harmonised consumer price (HICP) index climbed 0.60% on a MoM basis in Spain, compared to an advance of 0.20% in the prior month. The preliminary figures had also indicated a rise of 0.60%. Market expectation was for the HICP to advance 0.60%.
Spanish CPI advanced as expected in September
On a monthly basis, the final CPI recorded a rise of 0.20% in Spain, in September, in line with market expectations. The preliminary figures had also recorded a rise of 0.20%. In the prior month, the CPI had registered a similar rise.
Spanish HICP advanced less than expected in September
On an annual basis, in Spain, the final HICP advanced 1.80% in September, lower than market expectations for an advance of 1.90%. In the prior month, the HICP had climbed 2.00%. The preliminary figures had indicated an advance of 1.90%.
FOMC Minutes: Officials on track to raise rates in December, debate over weak inflation
Minutes of the Federal Reserve’s (Fed) September meeting indicated that policymakers are leaning towards another interest rate hike before this year-end. However, officials debated over whether a streak of soft inflation readings reflects a longer-term trend, rather than temporary weakness.
US JOLTs job openings dropped in August
In the US, JOLTs job openings recorded a drop to 6082.00 K in August, compared to market expectations of a fall to 6125.00 K. JOLTs job openings had registered a revised reading of 6140.00 K in the prior month.
US mortgage applications dropped in the last week
Mortgage applications in the US dropped 2.10% on a weekly basis, in the week ended 06 October 2017. Mortgage applications had fallen 0.40% in the previous week.
Japanese domestic corporate goods price index advanced as expected in September
The domestic corporate goods price index climbed 3.00% in Japan on an annual basis in September, at par with market expectations. The domestic corporate goods price index had climbed 2.90% in the previous month.
Japanese bank lending ex-trust climbed in September
Bank lending ex-trust rose 3.00% in Japan on a YoY basis, in September. Bank lending ex-trust had registered a rise of 3.20% in the previous month.
Japanese domestic corporate goods price index advanced as expected in September
In September, on a MoM basis, the domestic corporate goods price index in Japan climbed 0.20%, at par with market expectations. The domestic corporate goods price index had recorded an unchanged reading in the prior month.
Japanese machine tool orders rose in September
In September, on an annual basis, the preliminary machine tool orders in Japan recorded a rise of 45.30%. Machine tool orders had advanced 36.20% in the previous month.
Japanese average office vacancies in Tokyo rose in September
In Japan, average office vacancies in Tokyo recorded a rise of 3.17% on a MoM basis, in September. Average office vacancies in Tokyo had advanced 3.35% in the previous month.
Japanese bank lending including trusts advanced in September
Bank lending including trusts registered a rise of 3.00% in Japan on an annual basis, in September. Bank lending including trusts had risen 3.20% in the prior month.