Market briefing: US markets ended firmer yesterday, buoyed by various merger & acquisition announcements

UK Market Snapshot
UK markets closed lower yesterday, with the FTSE 100 index extending its losses from the previous session, dragged down by a plunge in commodity producers. Also, a leading financial firm reduced its recommendation on UK equities to 'Neutral' from 'Buy'. Precious metal miners, Fresnillo and Randgold Resources dropped 2.0% and 2.4%, respectively, amid weakness in gold prices. Oil stocks, Royal Dutch Shell and BP slipped 0.2% and 1.2%, respectively, tracking losses in crude oil prices. Cobham sank 13.0%, as the former issued a fresh profit warning for the year 2016. Royal Bank of Scotland Group slid 1.1%, after a leading broker downgraded its rating on the stock to 'Sell' from 'Hold'. On the contrary, easyJet added 1.4%, following a broker upgrade on the stock to 'Buy' from 'Neutral'. The FTSE 100 lost 0.5%, to close at 6,986.4, while the FTSE 250 fell 0.4%, to settle at 17,860.5.
US Market Snapshot
US markets ended firmer yesterday, buoyed by various merger & acquisition announcements. B/E Aerospace rallied 16.4%, after Rockwell Collins, down 6.2%, announced that it would acquire the aircraft parts supplier for $6.4 billion. T-Mobile US surged 9.5%, after it reported higher than expected profit for the third quarter. Bucking the trend, Basic Energy Services sank 51.4%, following its restructuring support agreement with lenders and debtholders as it prepares to file for bankruptcy. Genworth Financial plunged 8.1%, after it agreed to be bought by China Oceanwide Holdings Group in a deal valued at $2.7 billion. AT & T lost 1.7%, after the company agreed to acquire media firm, Time Warner, down 3.1%, for $85.4 billion. The S & P 500 edged up 0.5%, to settle at 2,151.3. The DJIA rose 0.4%, to settle at 18,223.0, while the NASDAQ gained 1.0%, to close at 5,309.8.
Europe Market Snapshot
Other European markets finished mostly higher yesterday, after upbeat reports on the Euro-zone manufacturing and services PMIs for October. Banca Monte dei Paschi di Siena soared 28.3%, after its CEO, Marco Morelli, prepared to present a new business plan considered crucial for its survival. Peers, Bankia and CaixaBank climbed 4.0% and 4.8%, respectively. Koninklijke Philips advanced 4.4%, after it reported a rise in its profit for the third quarter. On the flipside, AIXTRON sank 11.5%, as the German economy ministry reopened a review of a takeover by China-based, Grand Chip Investment. Syngenta tumbled 5.8%, on mounting concerns that its takeover by China National Chemical Corp for $43.0 billion is at risk due to regulatory delays in the European Union. The FTSEurofirst 300 index marginally slid, to close at 1,358.5. Among other European markets, the German DAX Xetra 30 rose 0.5%, to close at 10,761.2, while the French CAC-40 added 0.4%, to settle at 4,552.6.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning. In Japan, ST Corp has climbed 4.4%, after its half-yearly operating profit beat expectations due to improved sales. Riken Technos has advanced 4.0%, after it announced that it will buy back around ¥1.8 billion of its shares. Shionogi & Co has gained 2.8%, as its operating profit for the half year surpassed its projections. On the losing side, IHI Corp has plummeted 10.3%, after it reduced its projected net income to break-even and also cancelled its dividends. In Hong Kong, casino stocks, Sands China and Galaxy Entertainment Group have risen 1.0% and 2.3%, respectively. In South Korea, SK Hynix has added 2.5%, after it reported upbeat operating profit for the third quarter. The Nikkei 225 index is trading 0.6% higher at 17,341.2. The Hang Seng index is trading 0.2% down at 23,564.5, while the Kospi index is trading 0.6% lower at 2,034.5.

Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0330GMT today, Brent Crude Oil one month futures contract is trading 0.27% or $0.14 lower at $51.32 per barrel, ahead of the American Petroleum Institute's weekly oil inventory report, scheduled to be released later today. Yesterday, the contract declined 0.62% or $0.32, to settle at $51.46 per barrel, after Iraq hinted that it would not be part of OPEC's plan to reduce crude oil production.
Gold
At 0330GMT today, Gold futures contract is trading 0.12% or $1.50 higher at $1265.20 per ounce. Yesterday, the contract declined 0.32% or $4.00, to settle at $1263.70 per ounce, reversing its gains from the prior session, amid strength in the greenback following robust manufacturing data from the economy.
Currency
At 0330GMT today, the EUR is trading a tad lower against the USD at $1.0876, ahead of the European Central Bank (ECB) President, Mario Draghi's speech, scheduled later today. Also, Germany's Ifo current assessment and business climate indices for October, slated to release in a few hours, will be closely monitored by investors. Yesterday, the EUR shed marginally versus the USD, to close at $1.0880.
At 0330GMT today, the GBP is trading 0.16% lower against the USD at $1.2216, ahead of the Bank of England (BoE) Governor, Mark Carney's speech, due to release later in the day. Additionally, the US housing price index for August and consumer confidence for October, set to release today, will be on investor's radar. Yesterday, the GBP rose marginally versus the USD, to close at $1.2235. The US Dollar climbed to eight-month high against most of its peers, after upbeat US Markit manufacturing PMI data in October further strengthened the case for a rate hike in December.
Fixed Income
In the US, long term treasury prices fell and pushed yields mostly higher, as data showed that the US Markit manufacturing PMI unexpectedly climbed in October and a series of merger announcements led to lower demand for government bonds. Yesterday, yield on 10-year notes advanced 3 basis points to 1.77%, while yield on 2-year notes remained unchanged at 0.84%. Meanwhile, 30-year bond yield climbed 4 basis points to 2.52%.

Key Economic News
UK balance of firms reporting total order book above normal recorded an unexpected drop in October
In October, the balance of firms reporting total order book above normal dropped unexpectedly to a level of -17.00 in the UK, higher than market expectations of an unchanged reading. In the previous month, the balance of firms reporting total order book above normal had registered a level of -5.00.
UK CBI trends selling prices advanced in October
CBI trends selling prices recorded a rise to 8.00 in the UK, in October, compared to a level of 5.00 in the prior month.
UK CBI business optimism declined in 4Q 2016
Pessimism among London businesses for the next six months has declined, with a net 8.00% of firms showing pessimism about their business prospects in 4Q 2016, as compared to a net 47.00% of firms that showed pessimism in the previous quarter.
Euro-zone composite PMI advanced in October
The preliminary composite PMI rose to a level of 53.70 in the Euro-zone, in October, compared to a reading of 52.60 in the previous month. Markets were anticipating composite PMI to climb to 52.80.
Euro-zone services PMI rose in October
In October, the flash services PMI in the Euro-zone rose to a level of 53.50, compared to a reading of 52.20 in the previous month. Market expectation was for services PMI to advance to a level of 52.40.
Euro-zone manufacturing PMI climbed in October
The flash manufacturing PMI in the Euro-zone recorded a rise to 53.30 in October, higher than market expectations of a rise to 52.70. The manufacturing PMI had recorded a level of 52.60 in the prior month.
German services PMI recorded a rise in October
In Germany, the preliminary services PMI climbed to 54.10 in October, compared to a reading of 50.90 in the previous month. Market expectation was for services PMI to rise to a level of 51.50.
German manufacturing PMI recorded a rise in October
In October, the preliminary manufacturing PMI in Germany recorded a rise to 55.10, compared to a reading of 54.30 in the previous month. Markets were anticipating manufacturing PMI to climb to 54.40.
French manufacturing PMI registered a rise in October
The preliminary manufacturing PMI rose to a level of 51.30 in October, in France, compared to market expectations of a rise to a level of 50.00. Manufacturing PMI had registered a reading of 49.70 in the previous month.
French services PMI dropped in October
The preliminary services PMI dropped to 52.10 in France, in October, compared to a level of 53.30 in the prior month. Markets were expecting services PMI to ease to 53.00.
Fed's Bullard sees low interest rates for 2 to 3 years
The Federal Reserve (Fed) Bank of St. Louis President, James Bullard, indicated that low interest rates will likely be the norm during the next two to three years. He further reiterated that a single US interest rate rise is all that's needed for the time being.
Fed's Evans sees three interest rate hikes by end of 2017
The Chicago Fed President, Charles Evans, stated that the central bank is likely to raise its policy rate three more times by the end of next year. He also suggested that the Fed may need to keep interest rates lower for longer to convince investors and the public that the central bank is serious about reaching its 2.0% inflation target.
US Markit manufacturing PMI rose surprisingly in October
In October, the preliminary Markit manufacturing PMI climbed unexpectedly to a level of 53.20 in the US, compared to market expectations of a steady reading. The Markit manufacturing PMI had recorded a reading of 51.50 in the prior month.
US Chicago Fed national activity index climbed in September
The Chicago Fed national activity index registered a rise to -0.14 in September, in the US, compared to market expectations of an advance to -0.13. The Chicago Fed national activity index had registered a revised level of -0.72 in the prior month.
Canadian wholesale sales advanced more than expected in August
On a monthly basis, wholesale sales in Canada recorded a rise of 0.80% in August, higher than market expectations for a rise of 0.60%. In the previous month, wholesale sales had registered a revised rise of 0.10%.
Japanese leading economic index climbed in August
The final leading economic index registered a rise to 100.90 in Japan, in August. In the prior month, the leading economic index had recorded a reading of 100.00. The preliminary figures had indicated a rise to 101.20.
Japanese coincident index eased in August
The final coincident index in Japan fell to a level of 112.00 in August. In the prior month, the coincident index had registered a reading of 112.10. The preliminary figures had also indicated a fall to 112.00.
Japanese supermarket sales eased in September
Supermarket sales in Japan dropped 3.20% in September on an annual basis. In the previous month, supermarket sales had dropped 2.90%.
Chinese leading economic index registered a rise in September
In China, the leading economic index advanced 1.10% on a MoM basis, in September. In the prior month, the leading economic index had climbed 0.80%.