UK Market Snapshot
UK markets closed mixed yesterday. The FTSE 100 index ended slightly higher, led by gains in mining sector stocks. Miners, Glencore, Anglo American and Antofagasta advanced 0.9%, 1.3% and 2.6%, respectively. Chesnara jumped 8.7%, after it announced plans to acquire Legal & General’s Dutch life and pensions business for about £136.0 million. Domino’s Pizza Group climbed 4.8%, after it increased its long-term target for expansion in UK to 1,600 stores. Direct Line Insurance Group gained 2.8%, after a leading broker upgraded its rating on the stock to ‘Overweight’ from ‘Equal weight’ and also raised its target price to 465.0p from 414.0p. On the flipside, National Grid, Mediclinic International and DCC shed 0.8%, 1.2% and 2.0%, respectively, after they traded ex-dividend. The FTSE 100 rose 0.2%, to close at 6,829.2, while the FTSE 250 slid 0.2%, to settle at 17,590.6.
US Market Snapshot
US markets were closed yesterday for the Thanksgiving Day holiday.
Europe Market Snapshot
Other European markets finished in positive territory yesterday, helped by a climb in commodity related stocks. ArcelorMittal and Boliden gained 1.4% and 1.6%, respectively. Vestas Wind Systems jumped 5.2%, after a leading broker raised its target price on the stock. Banca Monte dei Paschi di Siena advanced 3.3%, after its shareholders approved a share issue worth €5.0 billion. Remy Cointreau edged up 1.4%, after it reported a rise in its net profit for the first half. Healthcare sector stocks, Roche Holding, Novartis and Fresenius Medical Care rose 0.5%, 0.9% and 1.6%, respectively. Bucking the trend, thyssenkrupp fell 0.1%, after it reported a decline in its net profit for the full year due to global steel glut. The FTSEurofirst 300 index gained 0.3%, to close at 1,347.7. Among other European markets, the German DAX Xetra 30 rose 0.3%, to close at 10,689.3, while the French CAC-40 added 0.3%, to settle at 4,542.6.
Asia Market Snapshot
Markets in Asia are trading higher this morning. In Japan, the Nikkei 225 index has reached a 10-month high level, as the Japanese Yen fell to an eight-month low against the US Dollar. Auto exporters, Toyota Motor, Mazda Motor and Mitsubishi Motors have advanced 2.5%, 4.2% and 8.0%, respectively. Other exporters, Sony, Toshiba, Panasonic and Casio Computer have gained 0.5%, 1.3%, 4.1% and 8.1% respectively. On the contrary, banks, Chiba Bank and Concordia Financial Group have declined 3.2% and 4.5%, respectively. In Hong Kong, lenders, Bank of East Asia and Industrial and Commercial Bank of China have risen 0.5% and 0.9%, respectively. In South Korea, index majors, Samsung Electronics and POSCO have lost 0.6% and 0.8%, respectively. The Nikkei 225 index is trading 0.2% higher at 18,369.3. The Hang Seng index is trading 0.4% up at 22,690.5, while the Kospi index is trading marginally higher at 1,971.7.
Key Corporate Announcements Today
AGMs
Coal of Africa Ltd., Origin Enterprises, Pan African Resources, Range Resources Ltd. (DI), Thor Mining, Augean
EGMs
Globalworth Real Estate Investments Limited, PJSC Megafon GDR (Reg S), Tengri Resources (DI), Sirius Minerals
Final Dividend Payment Date
Aeorema Communications, Animalcare Group, Clinigen Group, CVC Credit Partners European Opportunities Ltd EURO, CVC Credit Partners European Opportunities Ltd GBP, Dunelm Group, Go-Ahead Group, JPMorgan Global Growth & Income, JPMorgan Income & Growth Inv Trust Income Shares
Interim Dividend Payment Date
Action Hotels, Amati Vct 2, Axiom European Financial Debt Fund Limited, Booker Group, Card Factory, CareTech Holding, City Natural Resources High Yield Trust, Dunedin Income Growth Inv Trust, GCP Infrastructure Investments Ltd, Greencoat UK Wind, Hansa Trust, Hansa Trust 'A' Non Voting Shares, IFG Group, JZ Capital Partners Ltd, Lookers, M&G High Income Inv Trust Income & Growth Units, Maven Income & Growth VCT, Morgan Advanced Materials, Moss Bros Group, Next Fifteen Communications, P2P Global Investments, Prime People, Provident Financial, Secure Income Reit, Sequoia Economic Infrastructure Income Fund Limited, Sequoia Economic Infrastructure Income Fund Limited C shares, Smart Metering Systems, Target Healthcare REIT Ltd, Trinity Mirror, U And I Group
Special Dividend Payment Date
Calculus VCT, Card Factory
Quarterly Payment Date
Primary Health Properties, Tetragon Financial Group Limited
Key Corporate Announcements for Monday
AGMs
Manchester & London Investment Trust, Petra Diamonds Ltd.(DI)
EGMs
El Oro ltd, SCS Group
Interim Dividend Payment Date
Datatec Ltd. (DI), ITV, The SME Loan Fund
Trading Announcements
Capital & Counties Properties
Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0430GMT today, Brent Crude Oil one month futures contract is trading 0.73% or $0.36 lower at $48.64 per barrel, ahead of Baker Hughes weekly oil rig count data, scheduled to release later in the day. Yesterday, the contract climbed 0.10% or $0.05, to settle at $49.00 per barrel, ahead of next week’s OPEC meeting where major producers are expected to implement the proposed cut in production.
Gold
At 0430GMT today, Gold futures contract is trading 0.90% or $10.70 lower at $1178.60 per ounce. Yesterday, the contract fell 0.20% or $2.70, to $1186.60 per ounce, extending its losses from the previous session, amid strength in the greenback.
Currency
At 0430GMT today, the EUR is trading 0.16% higher against the USD at $1.0569. The US Markit services PMI for November, due to release later in the day. Yesterday, the EUR weakened marginally versus the USD, to close at $1.0552. Meanwhile, data showed that German Ifo business climate and expectations came in lower than expected in November. Additionally, the German GfK consumer confidence survey unexpectedly rose in December.
At 0430GMT today, the GBP is trading marginally higher against the USD at $1.2453, ahead of UK preliminary GDP growth for the third quarter, due to release in some time. Yesterday, the GBP rose 0.08% versus the USD, to close at $1.2448, after the UK BBA mortgage approvals advanced more than expected in October.
Fixed Income
In the US, treasury market was closed on account of the Thanksgiving Day holiday.
Key Economic News
UK BBA mortgage approvals recorded a rise in October
In October, BBA mortgage approvals in the UK climbed to 40.85 K, compared to a revised reading of 38.69 K in the prior month. Market expectation was for BBA mortgage approvals to advance to 38.98 K.
German GDP advanced as expected in 3Q 2016
In 3Q 2016, the non-seasonally adjusted final gross domestic product (GDP) climbed 1.50% on an annual basis in Germany, meeting market expectations. The preliminary figures had also indicated an advance of 1.50%. In the prior quarter, GDP had advanced 3.10%.
German Ifo business expectations index fell in November
Compared to a reading of 106.10 in the previous month the Ifo business expectations index eased to 105.50 in November, in Germany. Market expectation was for the Ifo business expectations index to drop to a level of 106.00.
German GDP advanced as expected in 3Q 2016
On a quarterly basis, the seasonally adjusted final GDP climbed 0.20% in Germany, in 3Q 2016, in line with market expectations. GDP had recorded a rise of 0.40% in the previous quarter. The preliminary figures had also recorded an advance of 0.20%.
German government spending advanced more than expected in 3Q 2016
Government spending in Germany climbed 1.00% in 3Q 2016 on a QoQ basis, higher than market expectations for an advance of 0.60%. Government spending had registered a revised rise of 1.20% in the prior quarter.
German construction investment rose less than expected in 3Q 2016
In 3Q 2016, construction investment recorded a rise of 0.30% on a QoQ basis in Germany, compared to a revised drop of 1.90% in the previous quarter. Markets were expecting construction investment to climb 0.60%.
German imports rose less than expected in 3Q 2016
In 3Q 2016, imports registered a rise of 0.20% in Germany on a quarterly basis, compared to a revised rise of 0.10% in the previous quarter. Market expectation was for imports to climb 0.30%.
German capital investment remained steady in 3Q 2016
Capital investment in Germany remained steady on a QoQ basis in 3Q 2016, lower than market expectations for a rise of 0.30%. In the previous quarter, capital investment had dropped by a revised 1.60%.
German exports fell more than expected in 3Q 2016
Exports in Germany eased 0.40% on a QoQ basis in 3Q 2016, higher than market expectations for a drop of 0.30%. In the prior quarter, exports had climbed 1.20%.
German Ifo current assessment index recorded an unexpected rise in November
In Germany, the Ifo current assessment index climbed unexpectedly to 115.60 in November, compared to market expectations of a drop to 115.00. The Ifo current assessment index had recorded a revised reading of 115.10 in the prior month.
German private consumption rose more than expected in 3Q 2016
Private consumption in Germany registered a rise of 0.40% in 3Q 2016 on a quarterly basis, more than market expectations for an advance of 0.30%. Private consumption had registered a rise of 0.20% in the prior quarter.
German consumer confidence index climbed unexpectedly in December
In December, the consumer confidence index rose unexpectedly to a level of 9.80 in Germany, compared to a reading of 9.70 in the prior month. Market expectation was for the consumer confidence index to record a flat reading.
German domestic demand advanced as expected in 3Q 2016
In 3Q 2016, domestic demand in Germany recorded a rise of 0.50% on a quarterly basis, in line with market expectations. Domestic demand had fallen by a revised 0.10% in the previous quarter.
German GDP advanced as expected in 3Q 2016
On a YoY basis in Germany, the working day adjusted final GDP recorded a rise of 1.70% in 3Q 2016, compared to a rise of 1.80% in the previous quarter. Market expectation was for GDP to advance 1.70%. The preliminary figures had also recorded a rise of 1.70%.
German Ifo business climate index remained unchanged in November
The Ifo business climate index remained steady at a level of 110.40 in Germany, in November, compared to market expectations of an advance to 110.50.
French own-company production outlook registered an unexpected drop in November
In November, own-company production outlook eased unexpectedly to a level of 7.00 in France, compared to market expectations of an advance to a level of 10.00. In the prior month, own-company production outlook had registered a level of 9.00.
French industrial business climate index steadied in November
The industrial business climate index remained unchanged at 102.00 in France, in November, higher than market expectations of a drop to 101.00.
French production outlook indicator advanced in November
In November, the production outlook indicator registered a rise to 3.00 in France, higher than market expectations of an advance to 2.00. In the prior month, the production outlook indicator had recorded a revised level of 1.00.
Italian wage inflation climbed in October
The wage inflation in Italy rose to a level of 0.10% in October. In the previous month, the wage inflation had recorded a reading of 0.00%.
Italian annual wage inflation steadied in October
The annual wage inflation remained steady at 0.60% in October, in Italy.
Spanish GDP rose as expected in 3Q 2016
In Spain, the final GDP registered a rise of 3.20% on a YoY basis in 3Q 2016, compared to a similar rise in the prior quarter. The preliminary figures had also indicated an advance of 3.20%. Markets were expecting GDP to climb 3.20%.
Spanish GDP advanced as expected in 3Q 2016
On a quarterly basis, the final GDP advanced 0.70% in 3Q 2016, in Spain, compared to an advance of 0.80% in the prior quarter. Markets were expecting GDP to rise 0.70%. The preliminary figures had also recorded an advance of 0.70%.
Swiss industrial production registered a rise in 3Q 2016
On an annual basis, industrial production in Switzerland climbed 0.40% in 3Q 2016. In the prior quarter, industrial production had fallen by a revised 1.30%.
Foreign investors turned net sellers of Japanese bonds in the previous week
Ministry of Finance has reported that foreign investors turned net sellers of ¥1106.80 billion worth of Japanese bonds in the week ended 18 November 2016, as compared to being net buyers of a revised ¥420.10 billion worth of Japanese bonds in the previous week.
Japanese coincident index rose in September
In September, the final coincident index in Japan registered a rise to 112.70. The coincident index had recorded a reading of 112.00 in the previous month. The preliminary figures had recorded a rise to 112.10.
Japanese Tokyo CPI excluding fresh food declined as expected in November
In November, Tokyo CPI excluding fresh food in Japan eased 0.40% on an annual basis, in line with market expectations. In the prior month, Tokyo CPI excluding fresh food had registered a similar fall.
Japanese investors became net buyers of foreign stocks in the previous week
Japanese investors were net buyers of ¥672.40 billion worth of foreign stocks in the week ended 18 November 2016, as compared to being net buyers of a revised ¥339.80 billion worth of foreign stocks in the previous week.
Japanese national CPI registered an unexpected rise in October
In Japan, the national consumer price index (CPI) recorded an unexpected rise of 0.10% in October on an annual basis, compared to a fall of 0.50% in the prior month. Market expectation was for the national CPI to record a flat reading.
Japanese corporate service price index advanced more than expected in October
The corporate service price index advanced 0.50% on a YoY basis in Japan, in October, compared to a revised rise of 0.20% in the prior month. Market anticipation was for the corporate service price index to advance 0.30%.
Japanese National CPI ex-fresh food dropped as expected in October
In October, National CPI ex-fresh food eased 0.40% on a YoY basis in Japan, in line with market expectations. In the prior month, National CPI ex-fresh food had dropped 0.50%.
Japanese Tokyo CPI advanced more than expected in November
Tokyo CPI rose 0.50% on an annual basis in November, in Japan, compared to a revised advance of 0.10% in the previous month. Markets were expecting Tokyo CPI to climb 0.20%.
Japanese National CPI ex-food, energy rose more than expected in October
On a YoY basis in Japan, National CPI ex-food, energy climbed 0.20% in October, more than market expectations for an advance of 0.10%. National CPI ex-food, energy had recorded an unchanged reading in the prior month.
Japanese Tokyo CPI excluding food and energy remained steady in November
Tokyo CPI excluding food and energy remained steady on a YoY basis in Japan in November, at par with market expectations. In the prior month, Tokyo CPI excluding food and energy had registered a rise of 0.10%.
Japanese investors turned net sellers of foreign bonds in the previous week
Japanese investors turned net sellers of ¥260.60 billion worth of foreign bonds in the week ended 18 November 2016, as compared to being net buyers of ¥466.20 billion worth of foreign bonds in the prior week.
Foreign investors became net buyers of Japanese stocks in the previous week
Foreign investors were net buyers of ¥461.70 billion worth of Japanese stocks in the week ended 18 November 2016, from being net buyers of a revised ¥546.00 billion worth of Japanese stocks in the prior week.
Japanese leading economic index eased in September
In Japan, the final leading economic index fell to a level of 100.30 in September. The leading economic index had recorded a level of 100.90 in the prior month. The preliminary figures had recorded a drop to 100.50.