UK Market Snapshot
UK markets finished mixed on Friday, with the FTSE 100 index closing on a weaker footing as the Pound gained against the US Dollar. Provident Financial surged 12.4%, after the company announced that it had hired 300 part-time debt collection agents to help restore its reputation on the doorstep lending business. Ashmore group soared 7.2%, after the company posted strongest net inflows of client money in four years in the first quarter. Miners, BHP Billiton, Glencore and Rio Tinto climbed 1.6%, 2.4% and 3.0%, respectively, after data showed that Chinese imports rose more than expected in September. Bucking the trend, GKN plunged 9.9%, after the company reported a weaker margin performance for the third quarter due to program transitions and operational challenges in its Aerospace North America division. The FTSE 100 declined 0.3%, to close at 7,535.4, while the FTSE 250 marginally rose to settle at 20,259.5
US Market Snapshot
US markets finished in positive territory on Friday, with the NASDAQ index closing at its record high level following a rally in technology sector shares. Microsoft, Apple and Facebook gained 0.5%, 0.6% and 0.7%, respectively. Bank of America advanced 1.5%, after the lender reported upbeat profit for the third quarter due to higher interest rates and a drop in costs. On the flipside, Antares Pharma sank 37.8%, after the company received a letter from the US FDA stating that it had found deficiencies in its drug Xyosted during the review process. Wells Fargo declined 2.8%, after the bank posted downbeat revenue and earnings for the third quarter amid a decline in mortgage banking revenue. The S&P 500 gained 0.1%, to settle at 2,553.2. The DJIA rose 0.1%, to settle at 22,871.7, while the NASDAQ advanced 0.2%, to close at 6,605.8.
Europe Market Snapshot
Other European markets ended mostly higher on Friday, led by a gain in shares of Bayer. The company’s stock advanced 1.4%, after BASF agreed to acquire its seed and herbicide businesses for €5.9 billion in cash. Energy giants, TOTAL, Statoil and Eni rose 0.3%, 0.4% and 0.8%, respectively, on higher crude oil prices. Utility firms, RWE and E.ON gained 0.4% and 0.6%, respectively. Swiss lenders, Credit Suisse Group and UBS Group added 0.3% and 0.5%, respectively. On the losing side, Airbus declined 1.2%, after the US Federal Aviation Administration ordered an emergency inspection of about 120 Airbus A380 superjumbo jets worldwide. The FTSEurofirst 300 index gained 0.2%, to close at 1,537.3. Among other European markets, the German DAX Xetra 30 rose 0.1%, to close at 12,991.9, while the French CAC-40 shed 0.2%, to settle at 5,351.7.
Asia Market Snapshot
Markets in Asia are trading higher this morning, tracking Friday’s gains on Wall Street. In Japan, SoftBank Group has advanced 1.8%, after a report stated that T-Mobile US and SoftBank-controlled, Sprint, are planning to announce a merger agreement without any immediate asset sales. Banking sector stocks, Mizuho Financial Group and Mitsubishi UFJ Financial Group have gained 1.3% and 1.5%, respectively. In Hong Kong, energy giants, China Petroleum & Chemical, CNOOC and PetroChina have risen 0.5%, 0.6% and 1.2%, respectively, following gains in crude oil prices. In South Korea, index majors, Hyundai Steel and POSCO have climbed 2.2% and 5.1%, respectively. The Nikkei 225 index is trading 0.6% higher at 21,288.1. The Hang Seng index is trading 0.9% up at 28,735.0, while the Kospi index is trading 0.1% higher at 2,476.8.
Key Corporate Announcements Today
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)
Key Corporate Announcements for Tomorrow
AGMs
Frontier Developments, Newmark Security
Trading Announcements
Evraz, Mediclinic International, Merlin Entertainments, Moneysupermarket.com Group, Pearson, SEGRO, Virgin Money Holdings (UK)
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 1.12% or $0.64 higher at $57.81 per barrel, on concerns over fresh sanctions against Iran by the US as well as conflict in Iraq. On Friday, the contract climbed 1.64% or $0.92, to settle at $57.17 per barrel, after data showed that Chinese crude oil imports advanced by around 1.0 million barrels a day in September. Additionally, Baker Hughes reported that US oil rigs fell by 5 to 743 in the last week.
At 0330GMT today, Gold futures contract is trading 0.23% or $3.00 higher at $1304.50 per ounce. On Friday, the contract advanced 0.63% or $8.20, to settle at $1301.50 per ounce, after a weaker than expected US consumer price inflation report for September undermined the case for further interest rate hike in the US.
Currency
At 0330GMT today, the EUR is trading 0.14% lower against the USD at $1.1803, ahead of the Euro-zone’s trade balance data for August, scheduled to be released in a few hours. On Friday, the EUR weakened 0.08% versus the USD, to close at $1.1820. Meanwhile, German consumer price inflation rose in line with market expectations in September.
At 0330GMT today, the GBP is trading marginally higher against the USD at $1.3288. On Friday, the GBP strengthened 0.17% versus the USD, to close at $1.3285, amid hopes that the European Union will offer a two year Brexit transition deal to the UK, thus increasing the prospects of a smoother Brexit.
Bitcoin
At 0330GMT today, BTC is trading 1.07% higher against the USD at $5674.89. On Friday, BTC advanced 3.27% against the USD to close at $5614.78, extending its record high level to a second consecutive session. Meanwhile, a report indicated that South Korea is planning to tax Bitcoin use. Also, the Seoul Bitcoin Meetup urged New York Agreement (NYA) signatories to rescind their support for the controversial SegWit2x hard fork scheduled for mid-November. Separately, the Bank of Lithuania issued guidelines for initial coin offering (ICO) fundraisings in the country.
Key Economic News
German HICP remained steady in September
In September, on a monthly basis, the final harmonised consumer price index (HICP) in Germany remained flat, compared with an advance of 0.20% in the prior month. Market anticipation was for the HICP to record a flat reading. The preliminary figures had also recorded an unchanged reading.
German HICP rose as expected in September
In September, on an annual basis, the final harmonised consumer price index in Germany advanced 1.80%, meeting market expectations. In the prior month, the HICP had registered a similar rise. The preliminary figures had also indicated a rise of 1.80%.
German consumer price index (CPI) rose as expected in September
On a MoM basis in September, the final consumer price index (CPI) climbed 0.10% in Germany, meeting market expectations. The preliminary figures had also recorded an advance of 0.10%. In the prior month, the CPI had registered a similar rise.
German CPI rose as expected in September
The final CPI climbed 1.80% in Germany on a YoY basis in September, compared to a similar rise in the prior month. The preliminary figures had also indicated a rise of 1.80%. Markets were expecting the CPI to advance 1.80%.
Italian EU normalised CPI rose as expected in September
In September, on an annual basis, the final EU normalised CPI rose 1.30% in Italy, compared with an advance of 1.40% in the prior month. The preliminary figures had also recorded a rise of 1.30%. Markets were anticipating the EU normalised CPI to climb 1.30%.
Italian CPI dropped as expected in September
On a monthly basis in September, the final CPI registered a drop of 0.30% in Italy, in line with market expectations. The preliminary figures had also indicated a fall of 0.30%. The CPI had advanced 0.30% in the prior month.
Italian EU normalised CPI advanced as expected in September
In September, on a MoM basis, the final EU normalised CPI rose 1.80% in Italy, at par with market expectations. The preliminary figures had also recorded a rise of 1.80%. In the prior month, the EU normalised CPI had registered a rise of 0.10%.
Italian CPI advanced as expected in September
On a YoY basis in September, the final CPI climbed 1.10% in Italy, meeting market expectations. In the previous month, the CPI had climbed 1.20%. The preliminary figures had also recorded a rise of 1.10%.
Swiss producer and import price index advanced more than expected in September
On a MoM basis, the producer and import price index in Switzerland recorded a rise of 0.50% in September, higher than market expectations for an advance of 0.30%. In the previous month, the producer and import price index had recorded a rise of 0.30%.
Swiss producer and import price index rose more than expected in September
The producer and import price index in Switzerland registered a rise of 0.80% on a YoY basis in September, compared with an advance of 0.60% in the prior month. Markets were anticipating the producer and import price index to rise 0.60%.
Janet Yellen: US economy remains in good health, signals gradual rate hikes
The Federal Reserve (Fed) Chair, Janet Yellen, stated that the central bank expects to continue raising interest rates gradually as ongoing strength of the US economy and tightening labour market will eventually boost inflation. Further, Yellen acknowledged that the persistence of undesirably low inflation this year has been a surprise and that the central bank will be paying close attention to the inflation data in the months ahead. Yellen also reiterated that the impact of recent hurricanes on the economy would be temporary.
US CPI rose in September
The non-seasonally adjusted CPI rose to a level of 246.82 in the US, in September, compared to market expectations of a rise to a level of 246.90. In the prior month, the CPI had recorded a reading of 245.52.
US core CPI rose in September
In September, the seasonally adjusted core CPI in the US advanced to 252.86, compared to market expectations of an advance to a level of 253.06. In the prior month, the core CPI had registered a reading of 252.54.
US retail sales ex-autos rose more than expected in September
On a MoM basis, retail sales ex-autos registered a rise of 1.00% in the US, in September, higher than market expectations for a rise of 0.90%. Retail sales ex-autos had registered a revised rise of 0.50% in the previous month.
US CPI advanced less than expected in September
In September, on a monthly basis, the CPI in the US rose 0.50%, compared with an advance of 0.40% in the previous month. Market anticipation was for the CPI to rise 0.60%.
US CPI climbed in September
On a MoM basis, the non-seasonally adjusted CPI recorded a rise of 0.50% in September, in the US. CPI had climbed 0.30% in the prior month.
US business inventories advanced as expected in August
On a MoM basis, business inventories registered a rise of 0.70% in August, in the US, meeting market expectations. Business inventories had risen by a revised 0.30% in the previous month.
US advanced retail sales rose less than expected in September
In the US, advance retail sales climbed 1.60% on a MoM basis in September, lower than market expectations for a rise of 1.70%. In the previous month, advance retail sales had dropped by a revised 0.10%.
US retail sales Control Group rose as expected in September
In the US, retail sales Control Group rose 0.40% on a monthly basis in September, meeting market expectations. In the prior month, retail sales Control Group had registered a revised flat reading.
US CPI (ex-food & energy) rose less than expected in September
The CPI (ex-food & energy) rose 0.10% in the US on a monthly basis in September, lower than market expectations for a rise of 0.20%. The CPI (ex-food & energy) had recorded a rise of 0.20% in the previous month.
US CPI (ex-food & energy) rose less than expected in September
On an annual basis, the CPI (ex-food & energy) advanced 1.70% in the US, in September, compared to a similar rise in the previous month. Market expectation was for the CPI (ex-food & energy) to rise 1.80%.
US retail sales (ex-auto & gas) rose more than expected in September
On a MoM basis, in the US, retail sales (ex-auto & gas) climbed 0.50% in September, more than market expectations for an advance of 0.40%. In the prior month, retail sales (ex-auto & gas) had advanced by a revised 0.10%.
US CPI advanced less than expected in September
In the US, the CPI climbed 2.20% on an annual basis in September, lower than market expectations for an advance of 2.30%. The CPI had climbed 1.90% in the prior month.
US Reuters/Michigan consumer sentiment index unexpectedly climbed in October
The flash Reuters/Michigan consumer sentiment index recorded an unexpected rise to 101.10 in the US, in October, compared to a level of 95.10 in the previous month. Markets were anticipating the Reuters/Michigan consumer sentiment index to drop to a level of 95.00.