UK Market Snapshot
UK markets closed in positive territory yesterday, amid a rally in commodities-related stocks. Miners, BHP Billiton, Glencore and Anglo American climbed 4.9%, 5.3% and 7.6%, respectively, as metals prices advanced. Rotork surged 13.1%, after it projected that its revenue for the full year would be towards the upper end of analysts’ expectations. On the flipside, Babcock International Group dipped 4.6%, after it reported weaker than expected organic revenue growth in the first half of the year. However, the company backed its results for the full year. Kingfisher declined 3.2%, as its like-for-like sales growth slowed in the third quarter amid disappointing sales in France. Compass Group dropped 2.7%, even though it reported a rise in its pre-tax profit for 2016. The FTSE 100 added 0.6%, to close at 6,819.7, while the FTSE 250 gained 0.9%, to settle at 17,679.1.
US Market Snapshot
US markets ended higher yesterday, with the Dow Jones index closing above 19,000 mark for the first time, amid optimism that the US President-elect, Donald Trump, would drive economic growth. Dr Pepper Snapple Group advanced 2.6%, after it announced plans to acquire Bai Brands in a cash deal valued at $1.7 billion. Hormel Foods edged up 2.6%, as it provided upbeat profit outlook for fiscal 2017. Signet Jewelers gained 2.2%, after it raised its projected earnings for the full year. On the losing side, Palo Alto Networks sank 13.2%, after it forecasted lower than expected revenue and profit for the current quarter. Medtronic plummeted 8.7%, as its revenue for the second quarter fell short of analysts’ estimates and it trimmed its profit outlook for the full year. The S&P 500 added 0.2%, to settle at 2,202.9. The DJIA gained 0.4%, to settle at 19,023.9, while the NASDAQ rose 0.3%, to close at 5,386.4.
Europe Market Snapshot
Other European markets closed in the green yesterday, buoyed by gains in commodity prices. Steel manufacturers, thyssenkrupp, Salzgitter and ArcelorMittal advanced 2.6%, 4.6% and 5.7%, respectively. Bucking the trend, Essilor International plunged 6.1%, after it slashed its projected revenue for 2016. Banco de Sabadell tumbled 4.4%, after Colombian investor, Jaime Gilinski, lowered his stake in the company. Vinci declined 3.8%, on hoax that its CFO was dismissed from the company due to financial irregularities. Cie Financiere Richemont and Swatch Group lost 3.0% and 3.6%, respectively, after data showed that the Swiss watch exports plunged in October. Healthcare stocks, Novartis and Roche Holding shed 3.0% and 3.1%, respectively, following losses in the US health care firms. The FTSEurofirst 300 index rose 0.1%, to close at 1,344.2. Among other European markets, the German DAX Xetra 30 added 0.3%, to close at 10,713.9, while the French CAC-40 gained 0.4%, to settle at 4,548.4.
Asia Market Snapshot
Markets in Asia are trading higher this morning, following overnight gains in the US equity markets. In Japan, markets are closed on account of the Labour Thanksgiving Day. In Hong Kong, lenders, Bank of East Asia and Industrial and Commercial Bank of China have gained 0.6% and 1.5%, respectively. On the contrary, oil giants, CNOOC and Sinopec Oilfield Service have slipped 0.8% and 1.2%, respectively. In South Korea, news surfaced that Korean prosecutors have raided the offices of Samsung Group over its alleged link with Choi Soon-sil, a long time confidant of President Park Geun-hye. Samsung Electro-Mechanics and Samsung C&T have fallen 0.8% and 2.5%, respectively, while Samsung Electronics has risen 1.0%. The Hang Seng index is trading 0.4% up at 22,763.5, while the Kospi index is trading 0.4% higher at 1,991.2. Yesterday, the Nikkei 225 index gained 0.3%, to settle at 18,162.9.
Key Corporate Announcements Today
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)
Key Corporate Announcements for Tomorrow
AGMs
Andalas Energy And Power, CVS Group, Gemfields, JPMorgan Global Markets Emerging Income Trust, K3 Business Technology Group, Netcall, Seeing Machines Ltd., South32 Limited (DI), SQN Asset Finance Income Fund Limited, Doriemus, Thor Mining, Optima Worldwide
EGMs
Falcon Acquisitions, Public Power GDR SA (Reg S), Bioquell, Cluff Natural Resources, JD Sports Fashion
Final Ex-Dividend Date
AB Dynamics, CVS Group, JPMorgan Japanese Inv Trust, Northern Venture Trust, River and Mercantile Group, Smart (J) & Co., St Ives, Utilitywise plc, World Careers Network
Final Dividend Payment Date
AIREA, Mulberry Group, Thorpe (F.W.), Wetherspoon (J.D.)
Interim Ex-Dividend Date
3i Infrastructure, Aew UK Reit, Amec Foster Wheeler, Atkins (WS), B&M European Value Retail S.A. (DI), Castings, DCC, Drum Income Plus Reit, Ecofin Global Utilities and Infrastructure Trust, Great Portland Estates, Ground Rents Income Fund, Hill & Smith Holdings, Johnson Matthey, JPMorgan Elect Managed Growth Shares, JPMorgan Elect Managed Income Shares, Liontrust Asset Management, Majestic Wine, Mckay Securities, Mediclinic International, National Grid, Personal Group Holdings, Princess Private Equity Holding Ltd., Schroder Real Estate Investment Trust Ltd, Scottish American Inv Company, Securities Trust of Scotland, Seneca Global Income & Growth Trust, Shanks Group, Standard Life Equity Income Trust, Talktalk Telecom Group, Tate & Lyle, UK Mail Group, Vodafone Group, VPC Specialty Lending Investments, Worldwide Healthcare Trust, Wynnstay Properties, Young & Co's Brewery 'A' Shares, Yu Group
Interim Dividend Payment Date
Centrica, Fair Oaks Income Fund Limited
Quarterly Ex-Dividend Date
Blackrock North American Income Trust, Carnival, HICL Infrastructure Company Ltd, Regional REIT Limited
Trading Announcements
Euromoney Institutional Investor
Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0430GMT today, Brent Crude Oil one month futures contract is trading 0.29% or $0.14 lower at $48.98 per barrel, ahead of the Energy Information Administration’s weekly crude oil inventory data, scheduled to be released later today. Yesterday, the contract climbed 0.45% or $0.22, to settle at $49.12 per barrel, after the American Petroleum Institute reported that US crude stockpiles declined by 1.3 million barrels for the week ended 18 November 2016.
Gold
At 0430GMT today, Gold futures contract is trading 0.12% or $1.50 higher at $1212.70 per ounce. Yesterday, the contract advanced 0.12% or $1.40, to settle at $1211.20 per ounce, extending its gains from the previous session, as a rally in the greenback halted.
Currency
At 0430GMT today, the EUR is trading marginally higher against the USD at $1.0625, ahead of the Euro-zone and German preliminary Markit manufacturing and services PMIs for November, due to release in a few hours. Yesterday, the EUR slid marginally versus the USD, to close at $1.0624. On the macro front, US existing homes sales unexpectedly advanced at its strongest pace since February 2007 in October.
At 0430GMT today, the GBP is trading 0.07% lower against the USD at $1.2413, ahead of the UK Autumn Budget Statement by Chancellor of the Exchequer, Philip Hammond, scheduled later today. Additionally, US FOMC minutes and durable goods orders for October, slated to release later in the day, will grab a lot of market attention. Moreover, US weekly initial jobless claims data and preliminary Markit manufacturing PMI for November, are set to release today. Yesterday, the GBP weakened 0.54% versus the USD, to close at $1.2422. Meanwhile, UK’s public sector net borrowing narrowed more than anticipated in October.
Fixed Income
In the US, long term treasury prices rose and pushed yields mostly lower. Yesterday, yield on 10-year notes lost 2 basis points to 2.31%, while yield on 2-year notes fell 1 basis point to 1.07%. Meanwhile, 30-year bond yield remained unchanged at 3.00%.
Key Economic News
UK public sector net borrowing recorded a deficit in October
In the UK, in October, the public sector net borrowing (excluding temporary effects of financial interventions) has reported a deficit £4.80 billion, as compared to a revised deficit of £9.70 billion in the prior month. Markets were expecting public sector net borrowing to post a deficit of £6.00 billion.
UK public sector net cash requirement recorded a surplus in October
In the UK, public finances (public sector net cash requirement) has reported a surplus £3.40 billion in October, following a revised deficit of £18.90 billion in the prior month.
UK CBI trends selling prices advanced in November
CBI trends selling prices in the UK rose to a level of 19.00 in November. In the previous month, CBI trends selling prices had registered a reading of 8.00.
UK balance of firms reporting total order book above normal advanced in November
Compared to a level of -17.00 in the previous month the balance of firms reporting total order book above normal in the UK recorded a rise to -3.00 in November. Markets were anticipating the balance of firms reporting total order book above normal to advance to a level of -8.00.
UK public sector net borrowing reported a deficit in October
In the UK, in October, the public sector net borrowing has posted a deficit £4.30 billion, as compared to a revised deficit of £9.20 billion in the prior month. Markets were anticipating public sector net borrowing to post a deficit of £6.00 billion.
Euro-zone consumer confidence index advanced in November
In the Euro-zone, the flash consumer confidence index climbed to -6.10 in November, compared to a reading of -8.00 in the previous month. Market expectation was for the consumer confidence index to advance to -7.80.
Swiss imports advanced in October
In October, on a monthly basis, imports climbed 2.80% in Switzerland. In the previous month, imports had dropped by a revised 1.10%.
Swiss exports recorded a drop in October
On a MoM basis, exports in Switzerland recorded a drop of 4.70% in October. Exports had advanced by a revised 5.00% in the previous month.
Swiss trade surplus registered a drop in October
Switzerland has posted trade surplus of CHF 2.68 billion in October, compared to a revised trade surplus of CHF 4.33 billion in the prior month. Markets were anticipating the nation to post a trade surplus of CHF 3.88 billion.
US Redbook index recorded a drop in the last week
In the week ended 18 November 2016, on a monthly basis, the seasonally adjusted Redbook index fell 0.10% in the US. The Redbook index had registered a similar fall in the prior week.
US Redbook index rose in the last week
In the US, the Redbook index rose 1.00% in the week ended 18 November 2016 on an annual basis. The Redbook index had registered a rise of 0.90% in the prior week.
US Richmond Fed manufacturing index recorded a rise in November
In November, the Richmond Fed manufacturing index in the US registered a rise to 4.00, compared to a reading of -4.00 in the previous month. Market expectation was for the Richmond Fed manufacturing index to advance to a level of 0.00.
US existing home sales unexpectedly advanced in October
Compared to a revised reading of 5.49 million in the prior month, existing home sales in the US unexpectedly rose by 2.00%, on MoM basis, to a level of 5.60 million in October. Markets were anticipating existing home sales to fall to 5.44 million.
Canadian retail sales rose as expected in September
In Canada, retail sales registered a rise of 0.60% on a MoM basis in September, compared to a revised rise of 0.10% in the prior month. Markets were expecting retail sales to rise 0.60%.
Canadian retail sales (ex-autos) remained flat in September
Retail sales (ex-autos) remained steady in Canada on a monthly basis in September, lower than market expectations for a rise of 0.50%. In the prior month, retail sales (ex-autos) had risen by a revised 0.20%.
Japanese Tokyo department store sales eased in October
Tokyo department store sales dropped 4.40% in Japan on a YoY basis, in October. In the previous month, Tokyo department store sales had fallen 3.40%.
Japanese nationwide department store sales recorded a drop in October
In October, on a YoY basis, nationwide department store sales in Japan registered a drop of 3.90%. Nationwide department store sales had recorded a drop of 5.00% in the prior month.
Chinese MNI business sentiment index climbed in November
The MNI business sentiment index rose to a level of 53.10 in November, in China. In the prior month, the MNI business sentiment index had registered a reading of 52.20.