UK Market Snapshot
UK markets closed mixed yesterday. The benchmark FTSE 100 index reversed its losses from the prior session, led by gains in commodity related shares. Oil stocks, Royal Dutch Shell, BP and Tullow Oil climbed 1.5%, 1.9% and 4.1%, respectively, on higher crude oil prices. Precious metal miners, Fresnillo and Randgold Resources advanced 3.2% and 3.7%, respectively. Other miners, Antofagasta, Glencore and Anglo American rose 2.3%, 2.4% and 3.0%, respectively. Bucking the trend, Essentra sank 20.4%, after it trimmed its projected operating profit for the full year. Mitie Group plummeted 9.5%, as it reported a pre-tax loss for the first half of the year and issued another profit warning. Direct Line Insurance Group declined 2.5%, after a broker reduced its target price for the stock to 357.0p from 366.0p. The FTSE 100 rose marginally, to close at 6,778.0, while the FTSE 250 dipped 0.7%, to settle at 17,527.6.
US Market Snapshot
US markets closed in positive territory yesterday, reaching their new all-time highs, boosted by a jump in crude oil prices. Energy sector stocks, Range Resources, Chesapeake Energy and Marathon Petroleum surged 7.0%, 7.1% and 8.9%, respectively. Headwaters rallied 17.1%, after Australia-based, Boral, announced that it would acquire the company in a cash deal worth $1.86 billion. Facebook advanced 4.1%, on the back of report that it plans to increase its UK staff by 500. Symantec edged up 3.2%, after it agreed to buy LifeLock, up 14.8%, for $2.3 billion. On the flipside, Tyson Foods sank 14.5%, after it reported dismal results for the fourth quarter and announced that its CEO, Donnie Smith, will be replaced by President, Tom Hayes. The S&P 500 gained 0.7%, to settle at 2,198.2. The DJIA rose 0.5%, to settle at 18,956.7, while the NASDAQ advanced 0.9%, to close at 5,368.9.
Europe Market Snapshot
Other European markets ended in the green yesterday, bolstered by a rally in commodities. Energy producers, Technip, TOTAL and Statoil advanced 1.1%, 2.0% and 3.6%, respectively. On the losing side, AIXTRON tumbled 5.0%, after the US Committee on Foreign Investment opposed a Chinese company’s bid for the former, stating that it could impact national security. Italian banks, Intesa Sanpaolo, Banco Popolare and Banca Popolare di Milano declined 1.1%, 3.7% and 3.9%, respectively, extending their losses from the previous session. Novartis slid 1.3%, after it announced a deal to acquire blood disease drugmaker, Selexys Pharmaceuticals for $665.0 million. The FTSEurofirst 300 index added 0.3%, to close at 1,342.4. Among other European markets, the German DAX Xetra 30 rose 0.2%, to close at 10,685.1, while the French CAC-40 gained 0.6%, to settle at 4,529.6.
Asia Market Snapshot
Markets in Asia are trading higher this morning. In Japan, Konica Minolta and Mitsui Mining and Smelting have advanced 2.8% and 2.9%, respectively. On the contrary, Nippon Yusen Kabushiki Kaisha and Sumco have declined 2.3% and 3.3%, respectively. Nissan Motor has lost 1.0%, after it stated that it would halt work at its Fukushima engine factory until a tsunami warning is lifted. Peers, Toyota Motor and Mazda Motor have dropped 1.1% and 2.2%, respectively. In Hong Kong, lenders, Industrial and Commercial Bank of China and Bank of East Asia have gained 2.0% and 2.2%, respectively. In South Korea, index majors, POSCO and Samsung Electronics have added 2.2% and 2.8%, respectively. The Nikkei 225 index is trading 0.2% higher at 18,147.1. The Hang Seng index is trading 1.3% up at 22,646.4, while the Kospi index is trading 0.8% higher at 1,982.5.
Key Corporate Announcements Today
AGMs
Berkeley Energia Limited (DI), Dunelm Group, JP Morgan Elect Plc – Managed Growth
Final Dividend Payment Date
Close Brothers Group
Interim Dividend Payment Date
GCP Asset Backed Income Fund Limited, Intu Properties
Trading Announcements
Homeserve, Intertek Group, Kingfisher, Rotork, Spectris, Spirax-Sarco Engineering, SVG Capital, Chemring, SeaDrill Partners
Key Corporate Announcements for Tomorrow
AGMs
Base Resources Ltd, Draganfly Investments Ltd., Feedback, Finsbury Food Group, Oilex Ltd., Pantheon International, Prairie Mining Limited, SCS Group, Transense Technologies, Town Centre Securities
EGMs
Sacoven
Final Dividend Payment Date
Galliford Try, Henderson EuroTrust, JPMorgan Emerging Markets Inv Trust
Interim Ex-Dividend Date
Datatec Ltd. (DI)
Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0430GMT today, Brent Crude Oil one month futures contract is trading 0.98% or $0.48 higher at $49.38 per barrel, ahead of the American Petroleum Institute’s weekly oil inventory data, scheduled to be released later today Yesterday, the contract climbed 4.35% or $2.04, to settle at $48.90 per barrel, amid growing expectations that the OPEC would agree to a production cut deal at its key meeting next week. In addition, Russian President, Vladimir Putin, showed his willingness to freeze crude oil output and expressed confidence that major producers would reach an agreement over limiting their production.
Gold
At 0430GMT today, Gold futures contract is trading 0.64% or $7.70 higher at $1217.50 per ounce. Yesterday, the contract advanced 0.09% or $1.10, to settle at $1209.80 per ounce, as a broad weakness in the greenback boosted demand for the safe-haven yellow metal.
Currency
At 0430GMT today, the EUR is trading a tad higher against the USD at $1.0629, ahead of the Euro-zone preliminary consumer confidence for November, slated to release later in the day. Yesterday, the EUR strengthened 0.40% versus the USD, to close at $1.0627. Meanwhile, the European Central Bank (ECB) President, Mario Draghi, maintained central bank's stance on low interest rates and added that the Euro-zone economy is recovering at a “moderate to steady pace and unemployment is falling” in the region. The US Dollar lost ground against major currencies but remained close to a 14-year high level.
At 0430GMT today, the GBP is trading marginally higher against the USD at $1.2490, ahead of UK’s public sector net borrowing figures for October, due to release in a few hours. Yesterday, the GBP rose 1.19% versus the USD, to close at $1.2490, reversing its losses from the prior session.
Fixed Income
In the US, long term treasury prices rose and pushed yields slightly lower. Yesterday, yield on 10-year notes slid 1 basis point to 2.33%, while yield on 2-year notes rose 1 basis point to 1.08%. Meanwhile, 30-year bond yield fell 1 basis point to 3.00%.
Key Economic News
ECB’s Draghi: Current levels of monetary support needed despite economy’s resilience
The European Central Bank (ECB) President, Mario Draghi, in his statement to the European Parliament, indicated that the Euro-zone is recovering at a “moderate to steady pace and unemployment is falling”, but the central bank still relies on the continuation of the current unprecedented level of monetary support to help the Euro-zone inflation rate return towards the bank’s 2.0% target. Draghi also repeated his call for fiscal policies to support the region’s economic recovery.
Spanish trade deficit slid in September
Trade deficit in Spain narrowed to €2.23 billion in September. Spain had registered a trade deficit of €2.56 billion in the prior month.
Swiss M3 money supply advanced in October
M3 money supply in Switzerland advanced 2.90% on an annual basis, in October. M3 money supply had climbed 3.00% in the prior month.
US Chicago Fed national activity index recorded a rise in October
The Chicago Fed national activity index rose to a level of -0.08 in the US, in October. In the prior month, the Chicago Fed national activity index had recorded a revised level of -0.23.
Canadian wholesale sales surprisingly fell in September
In September on a monthly basis, wholesale sales in Canada recorded an unexpected drop of 1.20%, less than market expectations for an advance of 0.50%. In the prior month, wholesale sales had advanced 0.80%.
Japanese all industry activity index climbed unexpectedly in September
In September, the all industry activity index registered an unexpected rise of 0.20% in Japan, on a MoM basis, higher than market expectations for a steady reading. The all industry activity index had registered a similar rise in the prior month.
Japanese supermarket sales advanced in October
On an annual basis, supermarket sales registered a rise of 0.60% in October, in Japan. In the prior month, supermarket sales had fallen 3.20%.
Japanese convenience store sales registered an unexpected rise in October
In October, convenience store sales unexpectedly rose 0.20% in Japan on a YoY basis, more than market expectations for a steady reading. In the previous month, convenience store sales had recorded a flat reading.
Chinese leading economic index advanced in October
In China, the leading economic index climbed 0.80% on a monthly basis, in October. The leading economic index had risen 1.10% in the prior month.