UK Market Snapshot
UK markets finished in negative territory yesterday, amid increased prospects of an interest rate hike in the UK after the nation’s consumer inflation reached its highest level since March 2012 in September. Merlin Entertainments sank 15.9%, after the company reported a flat year to date revenue due to unfavourable weather and the impact of terror attacks. Mediclinic International declined 4.4%, after the company warned that its earnings would drop for the first half of the year following a weak performance in the United Arab Emirates. Smiths Group slipped 1.0%, after the company appointed John Shipsey as its new CFO. Bucking the trend, Pearson surged 7.3%, after the company stated that its operating profit for the full year would come at the upper half of its guidance range. The FTSE 100 declined 0.1%, to close at 7,516.2, while the FTSE 250 fell 0.4%, to settle at 20,131.0.
US Market Snapshot
US markets finished mostly higher yesterday, with the S&P 500 and the DJIA closing at their record highs, boosted by upbeat corporate releases. UnitedHealth Group jumped 5.5%, after the company’s earnings for the third quarter topped market estimates and raised its profit forecast for 2017. Johnson & Johnson climbed 3.4%, after the company reported higher than expected earnings for the third quarter and lifted its sales and adjusted profit outlook for the full year. Morgan Stanley rose 0.4%, after the lender posted upbeat results for the third quarter as its wealth-management business continued to churn out reliable profits. On the flipside, Boeing shed 0.4%, after the airline’s rival firm Airbus acquired 50.01% stake in Bombardier’s C-Series jets. The S&P 500 gained 0.1%, to settle at 2,559.4. The DJIA gained 0.2%, to settle at 22,997.4, while the NASDAQ marginally slid to close at 6,623.7.
Europe Market Snapshot
Other European markets ended lower yesterday, led by losses in health-care stocks. Sartorius plunged 7.6%, after it trimmed its full year revenue and profit outlook. Genmab eased 6.2%, after announcing that sales of its joint-venture cancer drug ‘Darzalex’ with Johnson & Johnson was weaker than expected. Remy Cointreau declined 1.3%, despite reporting higher than expected sales in the second quarter. On the brighter side, Danone gained 2.0%, after the company posted an increase in its underlying sales for the third quarter, helped by a strong recovery in demand for infant milk formula and water products in China. Credit Suisse Group advanced 1.2%, after the Swiss hedge fund, RBR Capital Advisors acquired a stake in the former and launched a campaign to break up the lender. The FTSEurofirst 300 index declined 0.2%, to close at 1,535.2. Among other European markets, the German DAX Xetra 30 slid 0.1%, to close at 12,995.1, while the French CAC-40 marginally shed to settle at 5,361.4.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning, with investors remaining cautious and waiting for clues on future policy direction in China where the Communist Party's 19th Party Congress just kicked off. In Japan, drug manufacturers, Takeda Pharmaceutical and Astellas Pharma have advanced 0.6% and 2.0%, respectively. In contrast, Kobe Steel has dropped 3.1%, after the company came under the scrutiny of the US Department of Justice after the latter asked it to submit documents related to its widening data falsification scandal. In Hong Kong, China Unicom Hong Kong has slipped 0.9%, while China Mobile has risen 0.4%. In South Korea, Woori Bank and SK Hynix have declined 1.4% and 3.4%, respectively. The Nikkei 225 index is trading 0.1% higher at 21,354.6. The Hang Seng index is trading 0.1% down at 28,667.9, while the Kospi index is trading 0.1% lower at 2,482.3.
Key Corporate Announcements Today
AGMs
BATM Advanced Communications Ltd., India Capital Growth Fund Ltd., ITM Power plc
Final Dividend Payment Date
Stewart & Wight
Interim Ex-Dividend Date
Banco Santander S.A.
Interim Dividend Payment Date
IDOX, Non-Standard Finance, Somero Enterprises Inc. (DI), Standard Life Aberdeen
Quarterly Payment Date
Assura
Trading Announcements
Reckitt Benckiser Group
Key Corporate Announcements for Tomorrow
AGMs
BHP Billiton, PCI-PAL, Rank Group
Final Ex-Dividend Date
Fidelity Asian Values, Henderson EuroTrust, Smiths Group, Wilmington
Final Dividend Payment Date
Joules Group, Oxford Instruments
Interim Ex-Dividend Date
Aberdeen Asian Income Fund Ltd., Action Hotels, Alcentra Euorpean Floating Rate Income Fund Ltd Red Ord Shs, Amati Vct 2, Amedeo Air Four Plus Limited, BAE Systems, Burford Capital, Capita, City Merchants High Yield Trust, Doric Nimrod Air One Ltd, Doric Nimrod Air Three Limited Red Ord Pref Shs Npv, Doric Nimrod Air Two Ltd Pref Shs Npv, Ediston Property Investment Company, Harvey Nash Group, Howden Joinery Group, ICG Enterprise Trust, Intu Properties, M. P. Evans Group, Marshalls, Mears Group, Menzies(John), NewRiver REIT, S&U, Senior, Smart Metering Systems, Stilo International, Ted Baker, Tritax Big Box Reit, Twentyfour Income Fund Limited Ord Red, TwentyFour Select Monthly Income Fund Limited, UK Mortgages Limited, Walker Greenbank, Witan Pacific Inv Trust, Zegona Communications
Interim Dividend Payment Date
Dairy Farm International Holdings Ltd (Bermuda), Dairy Farm International Holdings Ltd. (Jersey), Dairy Farm International Holdings Ltd. (Singapore), Duke Royalty Limited, Gamma Communications, GVC Holdings, Hongkong Land Holding Ltd. (Sing.Reg), Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Strategic Holdingd Ltd. (Bermuda), Jardine Strategic Holdingd Ltd. (Jersey REG), Jardine Strategic Holdings Ltd. (Singapore), Mandarin Oriental International (Bermuda), Mandarin Oriental International (Jersey), Mandarin Oriental International (Singapore), SQN Asset Finance Income Fund Limited, SQN Asset Finance Income Fund Limited 'C Shares', TT Electronics
Quarterly Payment Date
Fair Oaks Income Limited 2014 Shs NPV, Fair Oaks Income Limited 2017 Shs NPV
Quarterly Ex-Dividend Date
City of London Inv Trust
Trading Announcements
Commodity, Currency & Bitcoin
Commodity
At 0330GMT today, Brent Crude Oil one-month futures contract is trading 0.69% or $0.40 higher at $58.28 per barrel, ahead of the Energy Information Administration’s weekly oil inventory data, scheduled to be released later today. Yesterday, the contract climbed 0.10% or $0.06, to settle at $57.88 per barrel, after the American Petroleum Institute reported that US crude stockpiles declined by 7.1 million barrels for the week ended 13 October 2017.
At 0330GMT today, Gold futures contract is trading 0.46% or $5.90 higher at $1288.90 per ounce. Yesterday, the contract declined 1.30% or $16.90, to settle at $1283.00 per ounce, as a stronger US Dollar weighed on the safe haven metal.
Currency
At 0330GMT today, the EUR is trading a tad higher against the USD at $1.1770, ahead of the European Central Bank (ECB) President, Mario Draghi’s speech, scheduled in a few hours. Additionally, market participants will monitor the Euro-zone’s construction output data for August, set to release today. Yesterday, the EUR weakened 0.25% versus the USD, to close at $1.1766, after the Euro-zone’s economic sentiment index surprisingly slid in October. Meanwhile, the region’s consumer price index (CPI) rose in line with market estimates in September.
At 0330GMT today, the GBP is trading marginally higher against the USD at $1.3191, ahead of UK’s ILO unemployment rate and average earnings for three months to August, set to release in a few hours. Yesterday, the GBP declined 0.46% versus the USD, to close at $1.3190. Meanwhile, UK’s consumer price index reached its highest level in more than five years in September, thus adding more pressure on the Bank of England (BoE) to raise interest rates next month.
Bitcoin
At 0330GMT today, BTC is trading 2.14% lower against the USD at $5476.04. Yesterday, BTC declined 2.73% against the USD to close at $5595.73. In major news, the Association of Entrepreneurs for the Development of Business Patriotism in Russia has sent a proposal to their government asking them to approve only domestic cryptocurrencies in their upcoming cryptocurrency legislation. Meanwhile, Bitcoin exchange, OKEx, revealed its plan to join Bitfinex to open a futures market that would enable traders to speculate on the outcome of the SegWit2x hard fork scheduled for November.
Key Economic News
BoE’s Carney issued warning on Hard Brexit, signalled rate hike in ‘coming months’
The Bank of England (BoE) Governor, Mark Carney warned that “more likely than not”, inflation in Britain would rise further in October and November and reiterated that a rate hike might be appropriate in the coming months. Further, Carney also stressed the importance of avoiding a so-called hard Brexit and that a transition agreement is in everyone’s interests.
UK CPI rose as expected in September
On an annual basis, in September, the consumer price index (CPI) advanced 3.00% in the UK, in line with market expectations. The CPI had registered a rise of 2.90% in the prior month.
UK CPI advanced as expected in September
On a monthly basis, the CPI rose 0.30% in September, in the UK, compared to an advance of 0.60% in the prior month. Market anticipation was for the CPI to advance 0.30%.
UK input PPI advanced more than expected in September
In September, on an annual basis, the non-seasonally adjusted input producer price index (PPI) in the UK rose 8.40%, higher than market expectations for a rise of 8.20%. Input PPI had registered a revised similar rise in the prior month.
UK retail price index rose less than expected in September
In the UK, the retail price index registered a rise of 3.90% in September on a YoY basis, compared to a similar rise in the previous month. Markets were expecting the retail price index to rise 4.00%.
UK house price index rose less than expected in August
On a YoY basis, the house price index climbed 5.00% in the UK, in August, compared to a revised advance of 4.50% in the previous month. Market anticipation was for the house price index to rise 5.40%.
UK PPI core output rose less than expected in September
In September, on an annual basis, the non-seasonally adjusted PPI core output registered a rise of 2.50% in the UK, compared to a similar rise in the prior month. Market expectation was for PPI core output to climb 2.60%.
UK output PPI rose as expected in September
In September, on a YoY basis, the non-seasonally adjusted output PPI recorded a rise of 3.30% in the UK, in line with market expectations. In the prior month, output PPI had recorded a rise of 3.40%.
UK retail price index ex-mort int. payments advanced less than expected in September
In September, the retail price index ex-mort int. payments advanced 4.10% on an annual basis in the UK, compared to a similar rise in the prior month. Market expectation was for the retail price index ex-mort int. payments to rise 4.20%.
UK input PPI rose less than expected in September
In September, on a MoM basis, the non-seasonally adjusted input PPI climbed 0.40% in the UK, less than market expectations for a rise of 1.20%. In the previous month, input PPI had risen by a revised 2.30%.
UK PPI core output remained flat in September
The non-seasonally adjusted PPI core output remained unchanged on a monthly basis in the UK, in September, compared to a rise of 0.20% in the prior month. Market expectation was for PPI core output to climb 0.10%.
UK output PPI advanced as expected in September
The non-seasonally adjusted output PPI recorded a rise of 0.20% on a MoM basis in September, in the UK, in line with market expectations. Output PPI had risen 0.40% in the previous month.
UK retail price index rose in September
The retail price index in the UK rose 0.10%, on monthly basis, to a level of 275.10 in September, compared to a reading of 274.70 in the previous month. Market expectation was for the retail price index to rise to 275.50.
UK core CPI advanced as expected in September
On a YoY basis, the core CPI rose 2.70% in September, in the UK, compared to a similar rise in the prior month. Markets were expecting the core CPI to advance 2.70%.
Euro-zone core CPI advanced as expected in September
In September, on an annual basis, the final core CPI in the Euro-zone recorded a rise of 1.10%, at par with market expectations. The preliminary figures had also indicated a rise of 1.10%. In the prior month, the core CPI had recorded a rise of 1.20%.
Euro-zone economic sentiment index slid in October
In October, the economic sentiment index in the Euro-zone dropped to 26.70, compared to a reading of 31.70 in the prior month.
Euro-zone new car registrations in EU 28 countries dropped in September
New car registrations in the EU 28 countries in the Euro-zone slid 2.00% on a YoY basis, in September. In the previous month, new car registrations in the EU 28 countries had climbed 5.60%.
Euro-zone CPI rose as expected in September
In September, the CPI recorded a rise of 0.40% on a MoM basis in the Euro-zone, compared to an advance of 0.30% in the prior month. Markets were expecting the CPI to climb 0.40%.
Euro-zone CPI advanced as expected in September
In September, the final CPI rose 1.50% on an annual basis in the Euro-zone, in line with market expectations. The preliminary figures had also recorded a rise of 1.50%. The CPI had registered a similar rise in the prior month.
German economic sentiment index advanced in October
The economic sentiment index advanced to 17.60 in Germany, in October, compared to a reading of 17.00 in the previous month. Market expectation was for the economic sentiment index to climb to a level of 20.00.
German current situation index unexpectedly fell in October
In Germany, the current situation index recorded an unexpected drop to a level of 87.00 in October, compared to market expectations of a rise to a level of 88.50. The current situation index had registered a reading of 87.90 in the prior month.
Italian trade surplus dropped in August
Trade surplus in Italy narrowed to €2769.00 million in August, from a trade surplus of €6560.00 million in the prior month.
Italian trade surplus narrowed in August
Italy has registered (EU countries) trade surplus of €0.24 billion in August, from a trade surplus of €2.03 billion in the previous month.
Italian trade surplus fell in August
Trade surplus (non-EU countries) in Italy narrowed to €2.53 billion in August, following a trade surplus of €4.53 billion in the previous month.
US export price index rose more than expected in September
In the US, the export price index registered a rise of 0.80% on a MoM basis in September, more than market expectations for an advance of 0.50%. In the prior month, the export price index had advanced by a revised 0.70%.
US total net TIC flows rose in August
Total net TIC flows in the US climbed to $125.00 billion in August, compared to a level of $7.30 billion in the prior month.
US capacity utilisation climbed in September
In September, capacity utilisation in the US registered a rise to 76.00%, compared to a revised reading of 75.80% in the prior month. Markets were anticipating capacity utilisation to climb to a level of 76.20%.
US import price index rose more than expected in September
The import price index in the US recorded a rise of 2.70% in September on a YoY basis, more than market expectations for a rise of 2.60%. The import price index had risen 2.10% in the prior month.
US manufacturing production advanced less than expected in September
In September, manufacturing production climbed 0.10% in the US on a monthly basis, compared to a revised fall of 0.20% in the prior month. Market anticipation was for manufacturing production to rise 0.20%.
US net treasury international capital (TIC) long term purchases climbed in August
Compared to a revised level of $1.20 billion in the prior month net treasury international capital (TIC) long term purchases recorded a rise to $67.20 billion in August, in the US.
US industrial production advanced as expected in September
Industrial production rose 0.30% on a monthly basis in the US, in September, in line with market expectations. Industrial production had recorded a revised drop of 0.70% in the previous month.
US Redbook index dropped in the last week
On a MoM basis, the seasonally adjusted Redbook index slid 1.40% in the US, in the week ended 13 October 2017. The Redbook index had fallen 1.50% in the prior week.
US import price index rose more than expected in September
The import price index climbed 0.70% on a MoM basis in September, in the US, higher than market expectations for a rise of 0.60%. In the previous month, the import price index had risen 0.60%.
US export price index climbed in September
The export price index in the US advanced 2.90% on a YoY basis, in September. In the prior month, the export price index had recorded a revised rise of 2.40%.
US Redbook index rose in the last week
In the week ended 13 October 2017, on a YoY basis, the Redbook index climbed 3.60% in the US. In the previous week, the Redbook index had registered a rise of 3.20%.
US housing market index unexpectedly climbed in October
In October, the housing market index in the US recorded an unexpected rise to a level of 68.00, higher than market expectations of an unchanged reading. In the previous month, the housing market index had registered a reading of 64.00.