UK Market Snapshot
UK markets finished in positive territory yesterday, with the benchmark FTSE 100 index reaching its new all-time high level. Meanwhile, news emerged that the Brexit talks between the European Union (EU) and the UK have reached a deadlock. Just Eat jumped 6.5%, after the company received a provisional approval from the Competition and Markets Authority to complete its acquisition of Hungryhouse. easyJet climbed 2.5%, on the back of news that Deutsche Lufthansa agreed to acquire part of Air Berlin. Energy suppliers, Centrica and SSE advanced 1.9% and 2.5%, respectively, after the UK government published the draft energy bill to cap electricity prices. Sky gained 1.2%, after the company posted a rise in its earnings and revenue in the first quarter and stated that it is on track to achieve its full year targets. The FTSE 100 advanced 0.3%, to close at 7,556.2, while the FTSE 250 rose 0.4%, to settle at 20,251.2.
US Market Snapshot
US markets closed lower yesterday, weighed down by losses in banking sector stocks. Citigroup declined 3.4%, despite posting better than expected results for the third quarter. JPMorgan Chase slipped 0.9%, after the lender reported a sharp fall in its bond trading revenue for the third quarter. Meanwhile, the company posted an upbeat profit for the same quarter. AT&T tumbled 6.1%, after the company revealed that it lost 90,000 US video subscribers in the third quarter due to fierce competition and the impact of recent hurricanes. Viacom declined 2.5%, as the company warned that the subscribers of Charter Communications, down 2.6%, might lose access to its channels if a distribution deal is not reached between the two companies. The S&P 500 slipped 0.2%, to settle at 2,550.9. The DJIA shed 0.1%, to settle at 22,841.0, while the NASDAQ slid 0.2%, to close at 6,591.5.
Europe Market Snapshot
Other European markets ended mostly higher yesterday, amid gains in travel and leisure related stocks. Deutsche Lufthansa advanced 2.4%, after the airline agreed to acquire parts of the insolvent carrier, Air Berlin, for $248.5 million. Nestle edged 0.8% up, after the company entered into a partnership with US-based firm, Codexis. On the losing side, Roche Holdings slid 0.4%, after Novartis, up 0.2%, announced that it would not sell its stake worth $14.0 billion in the former. Accor slipped 0.3%, after Mantra Group agreed to the former’s takeover offer of A$1.2 billion. Sanofi lost 0.3%, after the company announced that it would invest €170.0 million to expand its influenza vaccine production site in France. The FTSEurofirst 300 index marginally gained to close at 1,533.9. Among other European markets, the German DAX Xetra 30 rose 0.1%, to close at 12,982.9, while the French CAC-40 marginally shed to settle at 5,360.8.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning. In Japan, the Nikkei 225 has topped the 21,000 mark for the first time since 1996. Fast Retailing has climbed 4.0%, after the company posted a record profit for the year ended in August. On the contrary, Kobe Steel has plunged 8.7%, after a report indicated that more than 30 companies outside Japan were delivered products with false specifications. In Hong Kong, telecommunication firms, China Mobile and China Unicom Hong Kong have slipped 0.7% and 1.3%, respectively. In South Korea, Samsung Electronics has fallen 0.5%, after its Vice Chairman and Chief Executive Officer, Oh-Hyun Kwon, decided to step down from management. The Nikkei 225 index is trading 0.2% higher at 21,003.5. The Hang Seng index is trading 0.1% down at 28,419.8, while the Kospi index is trading marginally higher at 2,476.0.
Key Corporate Announcements Today
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
Key Corporate Announcements for Monday
AGMs
Bluejay Mining, Zibao Metals Recycling Holdings, Comptoir Group
Final Dividend Payment Date
1pm, National Westminster 9%pf
Interim Ex-Dividend Date
Sagicor Financial Corporation Limited (DI)
Interim Dividend Payment Date
A&J Mucklow Group
Trading Announcements
Acal, Schroders (Non-Voting)
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.41% or $0.23 higher at $56.48 per barrel, ahead of the weekly US oil rig count data by Baker Hughes, scheduled to be released later today. Yesterday, the contract declined 1.21% or $0.69, to settle at $56.25 per barrel, after the International Energy Agency’s report showed a monthly rise in global crude oil supplies in September. Meanwhile, the Energy Information Administration reported that US crude inventories declined by 2.8 million barrels for the week ended 06 October 2017.
At 0330GMT today, Gold futures contract is trading 0.39% or $5.10 higher at $1298.40 per ounce. Yesterday, the contract advanced 0.58% or $7.50, to settle at $1293.30 per ounce, reversing its previous session losses, amid a subdued US Dollar.
Currency
At 0330GMT today, the EUR is trading 0.17% higher against the USD at $1.1850, ahead of Germany’s consumer price inflation data for September, set to release in sometime. Investors will closely monitor the US consumer price index (CPI) data for September and advance retail sales data for the same month, scheduled to be released later today. Yesterday, the EUR weakened 0.24% versus the USD, to close at $1.1830. Meanwhile, the Euro-zone’s industrial production advanced to its highest level in nine months in August.
At 0330GMT today, the GBP is trading 0.11% higher against the USD at $1.3276. Yesterday, the GBP strengthened 0.29% versus the USD, to close at $1.3262, after a news report indicated that the UK may get a two year transition deal. Meanwhile, news emerged that there had been a little progress in the fifth round of Brexit negotiation talks, though the EU’s chief negotiator, Michel Barnier, hinted towards a possible progress by December.
Bitcoin
At 0330GMT today, BTC is trading 4.08% higher against the USD at $5659.04. Yesterday, BTC surged 12.82% against the USD to close at $ 5436.99, hitting its new record high level amid growing investor interest in the virtual currency ahead of a scheduled Bitcoin split in November. Also, speculation that China will soon lift the ban on crypto trading in the country reinforced confidence among investors. Meanwhile, news emerged that the People's Bank of China could introduce a state-owned digital currency.
Key Economic News
Mario Draghi pledged to keep interest rate at record low 'well past' the end of QE
The European Central Bank (ECB) President, Mario Draghi, indicated that interest rates are likely to stay low for an extended period of time, and well past the end of its bond-buying programme, in order to promote solid economic growth within the Euro-zone. Draghi also defended the central bank’s aggressive monetary policies, noting that it has been a success.
Euro-zone industrial production rose more than expected in August
The working day adjusted industrial production in the Euro-zone advanced 3.80% on a YoY basis in August, compared to a revised advance of 3.60% in the previous month. Market anticipation was for industrial production to advance 2.60%.
Euro-zone industrial production advanced more than expected in August
On a MoM basis, the seasonally adjusted industrial production climbed 1.40% in August, in the Euro-zone, higher than market expectations for a rise of 0.60%. Industrial production had advanced by a revised 0.30% in the prior month.
French CPI (ex-tobacco) declined more than expected in September
The final consumer price index (CPI) (ex-tobacco) recorded a drop of 0.20% in France on a MoM basis in September, compared to an advance of 0.50% in the prior month. The preliminary figures had recorded a fall of 0.10%. Markets were expecting the CPI (ex-tobacco) to fall 0.10%.
French EU normalised CPI declined more than expected in September
On a MoM basis, the final EU normalised CPI in France slid 0.20% in September, compared to a rise of 0.60% in the previous month. The preliminary figures had indicated a drop of 0.10%. Market expectation was for EU normalised CPI to drop 0.10%.
French CPI (ex-tobacco) advanced as expected in September
In France, the final CPI (ex-tobacco) recorded a rise of 1.00% on an annual basis in September, at par with market expectations. The CPI (ex-tobacco) had risen 0.90% in the prior month. The preliminary figures had also recorded a rise of 1.00%.
US continuing jobless claims unexpectedly dropped in the last week
In the week ended 30 September 2017, the seasonally adjusted continuing jobless claims in the US dropped unexpectedly to 1889.00 K, compared to market expectations of a rise to a level of 1930.00 K. In the prior week, continuing jobless claims had recorded a revised level of 1921.00 K.
US producer price (ex-food & energy) rose more than expected in September
Producer price (ex-food & energy) registered a rise of 0.40% in the US, on a monthly basis in September, more than market expectations for an advance of 0.20%. In the prior month, producer price (ex-food & energy) had climbed 0.10%.
US producer price (ex-food & energy) rose more than expected in September
In September, on a YoY basis, producer price (ex-food & energy) advanced 2.20% in the US, more than market expectations for an advance of 2.00%. Producer price (ex-food & energy) had registered a rise of 2.00% in the prior month.
US initial jobless claims declined in the last week
In the week ended 07 October 2017, the seasonally adjusted initial jobless claims in the US dropped to 243.00 K, compared to a revised reading of 258.00 K in the previous week. Markets were expecting initial jobless claims to fall to a level of 250.00 K.
US producer price advanced as expected in September
On a monthly basis, producer price climbed 0.40% in the US, in September, compared to an advance of 0.20% in the previous month. Market anticipation was for producer price to advance 0.40%.
US producer price rose as expected in September
In September, on a YoY basis, producer price climbed 2.60% in the US, meeting market expectations. In the previous month, producer price had risen 2.40%.
Canadian new housing price index advanced in August
The new housing price index registered a rise of 3.80% on an annual basis in Canada, in August. The new housing price index had registered a similar rise in the previous month.
Canadian new housing price index rose less than expected in August
The new housing price index climbed 0.10% on a MoM basis in Canada, in August, less than market expectations for an advance of 0.20%. In the prior month, the new housing price index had climbed 0.40%.
Canadian house price index dropped in September
On a MoM basis, the house price index fell 0.80% in Canada, in September. In the prior month, the house price index had registered a rise of 0.60%.
Foreign investors became net buyers of Japanese stocks in the previous week
Foreign investors were net buyers of ¥1235.30 billion worth of Japanese stocks in the week ended 06 October 2017, as compared to being net buyers of ¥953.30 billion worth of Japanese stocks in the previous week.
Japanese investors remained net buyers of foreign stocks in the previous week
Japanese investors were net buyers of ¥371.50 billion worth of foreign stocks in the week ended 06 October 2017, as compared to being net buyers of ¥470.90 billion worth of foreign stocks in the prior week.
Japanese M3 money supply rose as expected in September
On a YoY basis, in September, M3 money supply advanced 3.40% in Japan, compared to a similar rise in the prior month. Market anticipation was for M3 money supply to climb 3.40%.
Japanese investors turned net buyers of foreign bonds in the previous week
Japanese investors turned net buyers of ¥89.20 billion worth of foreign bonds in the week ended 06 October 2017, from being net sellers of ¥1014.10 billion worth of foreign bonds in the prior week.
Japanese money supply M2+CD advanced more than expected in September
In September, money supply M2+CD climbed 4.10% in Japan on an annual basis, higher than market expectations for a rise of 4.00%. In the previous month, money supply M2+CD had recorded a rise of 4.00%.
Japanese tertiary industry index unexpectedly slid in August
In August, the tertiary industry index in Japan unexpectedly eased 0.20% on a MoM basis, lower than market expectations for an advance of 0.10%. The tertiary industry index had registered a rise of 0.10% in the prior month.
Foreign investors remained net buyers of Japanese bonds in the previous week
Foreign investors remained net buyers of ¥100.00 billion worth of Japanese bonds in the week ended 06 October 2017, from being net buyers of ¥391.10 billion worth of Japanese bonds in the previous week.