(MENAFN- ProactiveInvestors - UK) 08:31
UK Market Snapshot
UK markets finished in negative territory yesterday, weighed down by losses in housing sector stocks, after RICS survey showed a slower than expected growth in UK house prices in December. Homebuilders, Persimmon, Taylor Wimpey and Barratt Developments dropped 1.0%, 1.3% and 2.1%, respectively. Royal Mail tumbled 6.0%, after the company reported a fall in its UK sales in the nine months to 25 December. Miners, Randgold Resources, Anglo American and Fresnillo slipped 1.1%, 3.1% and 3.4%, respectively, tracking a decline in metal prices. Peer, BHP Billiton shed 0.6%, after the company and its joint venture partner, Vale, agreed to pay $47.5 billion to settle a civil claim with Brazil's federal prosecutors. On the contrary, Moneysupermarket.com Group jumped 8.0%, as it expects to report robust results for the full year. The FTSE 100 declined 0.5%, to close at 7,208.4, while the FTSE 250 fell 0.5%, to settle at 18,223.7.
US Market Snapshot
US markets closed lower yesterday, as caution prevailed amongst investors ahead of the presidential inauguration of Donald Trump. Target declined 2.2%, following a broker downgrade on the stock to 'Sell' from 'Neutral'. Navient dropped 1.2%, after a lawsuit was filed against the company by the Consumer Financial Protection Bureau for mistreating borrowers. On the positive side, CSX rallied 23.4%, amid news that Canadian Pacific Railway CEO, Hunter Harrison, is stepping down from his post to partner with an activist investor in order to shake up the company's management. Netflix advanced 3.9%, after it posted better than expected results for the fourth quarter and an increase in its subscribers. Union Pacific edged 2.4% up, as its earnings for the fourth quarter surpassed market estimates and it provided an upbeat outlook for 2017. The S & P 500 slipped 0.4%, to settle at 2,263.7. The DJIA shed 0.4%, to settle at 19,732.4, while the NASDAQ slid 0.3%, to close at 5,540.1.
Europe Market Snapshot
Other European markets ended in the red yesterday. Rhoen-Klinikum lost 1.8%, as the company's new internal findings showed that there would be significant structural burdens on the results for fiscal 2017. Pharmaceutical firms, Actelion and Novartis declined 0.9% and 1.5%, respectively. Bucking the trend, Zodiac Aerospace soared 22.9%, after Safran, down 5.4%, reached a deal to acquire the company for about $9.0 billion to create the world's third-largest aerospace supplier. Remy Cointreau jumped 6.4%, after its revenue for the third quarter surpassed market expectations following a surge in Remy Martin cognac shipments ahead of Chinese New Year. The FTSEurofirst 300 index declined 0.1%, to close at 1,432.2. Among other European markets, the German DAX Xetra 30 slid marginally, to close at 11,596.9 while the French CAC-40 shed 0.3%, to settle at 4,841.1.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning. In Japan, Takeei has jumped 5.4%, after the company announced that it will buy back up to 500,000 shares of its common stock. Kirin Holdings has added 1.7%, after reports surfaced that the company has agreed to sell its Brazilian beer operations to Heineken for around $869.0 million. Panasonic has risen 1.0%, after the company announced that it is extending its partnership with Tesla. In Hong Kong, Orient Overseas International has plunged 7.9%, amid reports citing an alleged internal email from the company and its CEO, Andy Tung, stated that he was not aware of any acquisition deal. In South Korea, Samsung Electronics and POSCO have declined 0.5% and 1.4%, respectively. The Nikkei 225 index is trading 0.2% higher at 19,108.1. The Hang Seng index is trading 0.6% down at 22,907.9, while the Kospi index is trading 0.2% lower at 2,067.8.
Key Corporate Announcements Today
AGMs
Avacta Group, Character Group, Redefine International
EGMs
PJSC Megafon GDR (Reg S)
Final Dividend Payment Date
Cambria Automobiles, Scottish Oriental Smaller Companies Trust
Interim Dividend Payment Date
BlackRock Commodities Income Inv Trust, Charles Stanley Group, Greene King, Halfords Group, Octopus AIM VCT, Sirius Real Estate Ltd., Solid State, Stobart Group Ltd., United Carpets Group, Vertu Motors
Quarterly Payment Date
Real Estate Investors
Trading Announcements
Close Brothers Group, Record, Bonmarche
Key Corporate Announcements for Monday
AGMs
easyHotel, Kimberly Enterprises NV
EGMs
Datang International Power Generation Co Ltd.
Final Dividend Payment Date
Proactis Holdings
Interim Dividend Payment Date
Bonmarche Holdings
Trading Announcements
Petra Diamonds Ltd.(DI)
Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0430GMT today, Brent Crude Oil one month futures contract is trading 0.41% or $0.22 higher at $54.38 per barrel, ahead of Baker Hughes weekly oil rig count data, scheduled to release later in the day. Yesterday, the contract climbed 0.45% or $0.24, to settle at $54.16 per barrel, after the International Energy Agency stated that oil markets were tightening even before production cuts promised by OPEC and other producers. Meanwhile, the Energy Information Administration reported that US crude inventories climbed by 2.35 million barrels for the week ended 13 January 2017.
Gold
At 0430GMT today, Gold futures contract is trading 0.46% or $5.50 higher at $1207.00 per ounce. Yesterday, the contract declined 0.87% or $10.60, to settle at $1201.50 per ounce, registering its largest one-day loss of the month, as the greenback held onto gains against its peers following strong US economic releases and support from Federal Reserve Chair, Janet Yellen, for higher interest rates.
Currency
At 0430GMT today, the EUR is trading 0.16% higher against the USD at $1.0680, ahead of Germany's producer price index for December due to release in a few hours. Yesterday, the EUR strengthened 0.31% versus the USD, to close at $1.0663, after the Euro-zone's current account surplus expanded more than expected in November.
At 0430GMT today, the GBP is trading 0.11% higher against the USD at $1.2355, ahead of UK's retail sales data for December slated to release today. Investors will also look forward to Donald Trump's swearing-in ceremony, scheduled to be held later today. Yesterday, the GBP rose 0.69% versus the USD, to close at $1.2341. Meanwhile, economic data showed that the US weekly initial jobless claims unexpectedly dropped.
Fixed Income
In the US, long term treasury prices fell and pushed yields higher, after a string of upbeat US economic data further strengthened the prospects for the Fed to raise interest rates at a faster pace. Yesterday, yield on 10-year notes jumped 5 basis points to 2.47%, while yield on 2-year notes gained 2 basis points to 1.25%. Meanwhile, 30-year bond yield advanced 4 basis points to 3.04%.
Key Economic News
ECB kept key interest rate on hold, Draghi says no 'convincing' sign of inflation rise
The European Central Bank (ECB) held benchmark interest rate and bond-buying program steady, as widely expected. The ECB President, Mario Draghi, indicated that underlying inflation pressures in the Euro-zone remain subdued and that a very substantial degree of monetary policy accommodation is needed for Euro area inflation pressures to build up and support headline inflation in the medium term. He also added that the central bank's governing body stands ready to intervene further, if conditions worsen.
Euro-zone current account surplus expanded in November
The seasonally adjusted current account surplus in the Euro-zone rose to €36.10 billion in November, following a revised current account surplus of €28.30 billion in the prior month.
Euro-zone current account surplus rose in November
The non-seasonally adjusted current account surplus in the Euro-zone rose to €40.50 billion in November, compared to a revised current account surplus of €32.60 billion in the prior month.
Italian current account surplus dropped in November
Current account surplus in Italy dropped to €4.64 billion in November. Italy had registered a current account surplus of €6.09 billion in the previous month.
Swiss producer and import price index advanced as expected in December
The producer and import price index rose 0.20% on a monthly basis in Switzerland, in December, compared to a rise of 0.10% in the previous month. Markets were anticipating the producer and import price index to advance 0.20%.
Swiss producer and import price index remained flat in December
On a YoY basis, in December, the producer and import price index remained flat in Switzerland, less than market expectations for a rise of 0.10%. In the prior month, the producer and import price index had dropped 0.60%.
US Philadelphia Fed manufacturing index rose unexpectedly in January
In the US, Philadelphia Fed manufacturing index advanced unexpectedly to 23.60 in January, compared to market expectations of a fall to 15.30. In the previous month, Philadelphia Fed manufacturing index had registered a revised reading of 19.70.
US continuing jobless claims registered a drop in the last week
The seasonally adjusted continuing jobless claims dropped to 2046.00 K in the week ended 07 January 2017, in the US, compared to market expectations of a fall to a level of 2075.00 K. In the previous week, continuing jobless claims had recorded a revised reading of 2093.00 K.
US building permits unexpectedly dropped in December
Building permits unexpectedly fell by 0.20%, on monthly basis, to an annual rate of 1210.00 K in December, in the US, compared to a revised reading of 1212.00 K in the prior month. Markets were expecting building permits to advance to 1225.00 K.
US initial jobless claims recorded an unexpected drop in the last week
In the week ended 14 January 2017, the seasonally adjusted initial jobless claims fell unexpectedly to 234.00 K in the US, lower than market expectations of an advance to 252.00 K. Initial jobless claims had recorded a revised level of 249.00 K in the previous week.
US housing starts climbed in December
Compared to a revised level of 1102.00 K in the prior month, housing starts registered a rise of 11.30%, on monthly basis, to an annual rate of 1226.00 K in the US, in December. Markets were expecting housing starts to climb to 1188.00 K.
Foreign investors remained net buyers of Canadian securities in the previous month
Foreign investors were net buyers of C$7.24 billion worth of Canadian securities in November, as compared to being net buyers of C$15.80 billion worth of Canadian securities in the previous month.
Canadian investors turned net sellers of foreign securities in the previous month
Canadian investors turned net sellers of C$7.87 billion worth of foreign securities in November, as compared to being net buyers of C$2.10 billion worth of foreign securities in the prior month.
Canadian manufacturing shipments advanced more than expected in November
In Canada, manufacturing shipments climbed 1.50% in November on a monthly basis, higher than market expectations for an advance of 1.00%. In the previous month, manufacturing shipments had dropped by a revised 0.60%.
Japanese machine tool orders advanced in December
The final machine tool orders rose 4.40% on an annual basis in Japan, in December. In the prior month, machine tool orders had fallen 5.60%. The preliminary figures had also indicated a rise of 4.40%.
Chinese industrial production (YTD) advanced as expected in December
Industrial production (YTD) advanced 6.00% in China, on a YoY basis in December, meeting market expectations. In the prior month, industrial production (YTD) had registered a similar rise.
Chinese GDP advanced as expected in 4Q 2016
On a quarterly basis, gross domestic product (GDP) advanced 1.70% in China, in 4Q 2016, compared to a rise of 1.80% in the prior quarter. Market anticipation was for GDP to rise 1.70%.
Chinese real GDP (YTD) advanced in 4Q 2016
On a YoY basis, real GDP (YTD) advanced 6.80% in China, in 4Q 2016. Real GDP (YTD) had advanced 6.70% in the previous quarter.
Chinese retail sales rose more than expected in December
On an annual basis, retail sales registered a rise of 10.90% in China, in December, compared to a rise of 10.80% in the prior month. Market anticipation was for retail sales to advance 10.70%.
Chinese retail sales (YTD) advanced as expected in December
Retail sales (YTD) in China recorded a rise of 10.40% in December on a YoY basis, meeting market expectations. In the prior month, retail sales (YTD) had registered a similar rise.
Chinese fixed assets investment excl. rural YTD rose less than expected in December
On an annual basis in December, fixed assets investment excl. rural YTD registered a rise of 8.10% in China, less than market expectations for an advance of 8.30%. In the previous month, fixed assets investment excl. rural YTD had climbed 8.30%.
Chinese GDP advanced more than expected in 4Q 2016
On a YoY basis, GDP advanced 6.80% in China, in 4Q 2016, compared to a rise of 6.70% in the prior quarter. Market anticipation was for GDP to rise 6.70%.
Chinese industrial production advanced less than expected in December
In December, on an annual basis, industrial production rose 6.00% in China, lower than market expectations for an advance of 6.10%. Industrial production had climbed 6.20% in the prior month.