UK Market Snapshot
UK markets finished mixed yesterday, following losses in housing sector stocks after the UK’s treasury chief George Osborne disclosed a new budget plan with restricted housing benefits. Taylor Wimpey and Barratt Developments fell 5.0% and 5.7%, respectively, after it was announced in the budget that tax relief on mortgage interest for buy-to-let property purchasers would be slashed. Drax Group plunged 28.0%, following the government’s decision to impose climate change tax on clean power producers. Banks, Standard Chartered and Lloyds Banking Group declined 1.5% and 2.0% respectively, as banks would now pay a surcharge of 8% on their profits from next year. On the contrary, Barclays Plc advanced 2.0%, after its CEO Antony Jenkins was fired from the bank by the new Chairman John McFarlane. The FTSE 100 advanced 0.9%, to close at 6,490.7, while the FTSE 250 fell 0.6%, to settle at 17,112.9.
US Market Snapshot
US markets closed lower yesterday, following a sharp drop in the Chinese stock market and the uncertainty surrounding the Greek debt crisis. Meanwhile, trading on the NYSE stopped for a few hours due to a technical glitch and the FOMC minutes indicated that the Fed would closely assess economic growth before raising interest rates. Procter & Gamble dropped 0.9%, following an alteration in the packaging size of its Olay skin care products. Microsoft slid 0.1%, following the company’s announcement to layoff 7,800 employees in the phone business. On the upside, Container Store advanced 2.5%, after the company reported a lower than expected first-quarter loss. The S&P 500 slipped 1.7%, to settle at 2,046.7. The DJIA shed 1.5%, to settle at 17,515.4, while the NASDAQ slid 1.8%, to close at 4,909.8.
Europe Market Snapshot
Other European markets finished higher yesterday, after Greek Prime Minister, Alexis Tsipras, announced that his government would submit concrete reform proposals in the coming days and requested a three-year bailout loan from Eurozone’s rescue fund. Meanwhile, Greece faces a Sunday deadline to come up with fresh measures in exchange for further bailout aid. Air France-KLM climbed 2.2%, after reporting a rise in its year on year passenger traffic in June, supported by growth at its low-cost Transavia division. On the downside, automakers, BMW and Renault dropped 4.4% and 4.5% respectively, after a report indicated that China’s passenger car sales slowed in June. Sodexo slipped 0.1%, after slashing its annual revenue guidance, citing a challenging economic environment in Latin America and Europe. The FTSEurofirst 300 index gained 0.1%, to close at 1,477.8. Among other European markets, the German DAX Xetra 30 rose 0.7%, to close at 10,747.3, while the French CAC-40 advanced 0.7%, to settle at 4,639.0.
Asia Market Snapshot
Markets in Asia are trading mostly lower this morning. However, China’s Shanghai Composite index turned higher, rebounding from its heavy losses, following fresh support from the nation’s government, including the PBOC providing loans to the state-backed margin financing entity and the securities regulator banning major stockholders from selling their stakes for the next six months. The Hong Kong market has surged, with Citic Securities soaring 19.1% and heading towards its first session of increase in six days. In Japan, Toyota Motor and Nissan Motor have dropped 1.2% and 2.0% respectively. In South Korea, the central bank held its key interest rate at a record low of 1.5%, while lowering the nation’s growth outlook this year to 2.8%, compared to its April estimate of 3.1%. Among stocks, Hyundai Securities and Mirae Asset Securities have declined 0.9% and 1.1% respectively. The Nikkei 225 index is trading 0.8% lower at 19,577.1. The Hang Seng index is trading 3.3% up at 24,303.2, while the Kospi index is trading 0.2% lower at 2,012.6.
Key Corporate Releases Today
UK
| Full Year Consensus | ||||
| Company Name | Results | Currency | Estimated EPS | Estimated Revenue (Mn) |
| Supergroup Plc | Final | GBP | 0.59 | 483.30 |
| NCC Group Plc | Final | GBP | 0.09 | 126.54 |
| Mirada Plc | Final | GBP | – | 5.90 |
| City of London Group Plc | Final | GBP | (0.06) | 3.00 |
US
| Full Year Consensus | ||||
| Company Name | Results | Currency | Estimated EPS | Estimated Revenue (Mn) |
| Walgreens Boots Alliance Inc | Q3 | USD | 3.63 | 105,141.00 |
| PepsiCo Inc | Q2 | USD | 4.51 | 63,627.10 |
| PriceSmart Inc | Q3 | USD | 3.01 | 2,779.07 |
| Helen of Troy Ltd | Q1 | USD | 5.45 | 1,417.28 |
| VOXX International Corp | Q1 | USD | 0.55 | 766.23 |
| Barracuda Networks Inc | Q1 | USD | 0.27 | 276.93 |
| Synergy Resources Corp | Q3 | USD | 0.25 | 129.07 |
| China Finance Online Co Ltd | Q1 | USD | – | – |
| Northern Technologies International Corp | Q3 | USD | – | – |
| Emmis Communications Corp | Q1 | USD | – | – |
| SemiLEDs Corp | Q3 | USD | – | – |
Note: All Estimates are for Full Year
Key Corporate Announcements Today
AGMs
Aveva Group, Boussard & Gavaudan Holding Ltd. EUR Shares, Boussard & Gavaudan Holding Ltd. GBP Shares, Energy Technique, Gulf Keystone Petroleum Ltd.(DI), Lombard Risk Management, Maven Income & Growth VCT, Seneca Global Income & Growth Trust, TP70 2010 VCT , Zoltav Resources Inc (DI).
EGMs
Societatea Commerciala De Distributie Si Furnizare A Energiei Electrice S.A. GDR (Reg S)
Final Ex-Dividend Date
Amati VCT , Atkins (WS), Caledonia Investments, Castings, Cropper (James), E2V Technologies, Entertainment One Limited, Establishment Inv Trust, Impellam Group, Infinis Energy, International Greetings, KBC Advanced Technologies, Lombard Risk Management, Mission Marketing Group, Monks Inv Trust, Next, Next Fifteen Communications, Palace Capital , Stanley Gibbons Group, TalkTalk Telecom Group , Triple Point Income VCT, Triple Point Income VCT, Vedanta Resources, Ventus 2 VCT, Ventus 2 VCT ‘C’ Shares, Ventus VCT, Ventus VCT ‘C’ Shares, VP, Workspace Group.
Final Dividend Payment Date
Cineworld Group, Restore, Scisys, Young & Co’s Brewery ‘A’ Shares, Young & Co’s Brewery (Non-Voting).
Interim Ex-Dividend Date
Aberdeen Smaller Companies High Income Trust, Albion Venture Capital Trust, Amedeo Air Four Plus Limited, Aukett Swanke Group , CVC Credit Partners European Opportunities Ltd EURO, CVC Credit Partners European Opportunities Ltd GBP, Dewhurst, Doric Nimrod Air One Ltd, Doric Nimrod Air Three Limited Red Ord Pref Shs Npv, Doric Nimrod Air Two Ltd Pref Shs Npv, Driver Group, F&C Commercial Property Trust Ltd., Inland Homes, Invesco Perpetual Enhanced Income Limited, Jupiter Green Inv Trust, Murray International Trust, NextEnergy Solar Fund Limited Red, Nimrod Sea Assets Limited, Octopus Titan VCT , Oxford Technology 4 Venture Capital Trust, P2P Global Investments, P2P Global Investments C Shares, Pressure Technologies, Safestore Holdings, Schroder UK Growth Fund, TP5 VCT, TP5 VCT ‘B’ Shares, Troy Income & Growth Trust, Zytronic.
Special Ex-Dividend Payment Date
Foresight 4 VCT C, Next, Redde, Schroder UK Growth Fund.
Quarterly Payment Date
GlaxoSmithKline, XP Power Ltd. (DI).
Quarterly Ex-Dividend Date
Assura , Ediston Property Investment Company, Fair Oaks Income Fund Limited , Investors Capital Trust ‘A’ Shares, Marsh & Mclennan Cos Inc., Schroder Income Growth Fund, Verizon Communications.
Trading Announcements
Dunelm Group, Goals Soccer Centres, Grafton Group Units, Hays, Ashmore Group, Associated British Foods, Barratt Developments, Centamin, Premier Oil.
Key Corporate Announcements for Tomorrow
AGMs
Aurasian Minerals, Graphene NanoChem, Perpetual Income & Growth Inv Trust, Tau Capital, Value and Income Trust, Ten Alps, JPMorgan Eur Smaller Companies.
EGMs
IG Seismic Services GDR (Reg S), PJSC Centre For Cargo Container Traffic Transcontainer GDR (Reg S), Motif Bio, Ten Alps.
Final Dividend Payment Date
3i Infrastructure, Anglo-Eastern Plantations, Booker Group, C&C Group, Harvey Nash Group, Judges Scientific, M&C Saatchi, Marks & Spencer Group, S&U, Sainsbury (J), Sirius Real Estate Ltd., TLA Worldwide , Tribal Group.
Interim Dividend Payment Date
Britvic, Connect Group, JPMorgan European Investment Trust, Octopus Eclipse VCT 1, Standard Life European Private Equity Trust.
Special Dividend Payment Date
OMG
Quarterly Payment Date
BlackRock Income Strategies Trust, Schlumberger Ltd.
Trading Announcements
X5 Retail Group NV GDR (Reg S)
Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0330GMT today, Brent crude oil one month futures contract is trading 1.1% or $0.63 higher at $57.68 per barrel. Yesterday, the contract climbed 0.35% or $0.20, to settle at $57.05 per barrel after talks between Iran and the west dragged on. However, gains were capped after the Energy Information Administration (EIA) weekly report indicated that US crude stockpiles rose 400,000 barrels for the week ending July 3.
Gold
At 0330GMT today, Gold futures contract is trading 0.54% or $6.30 lower at $1157.20 per ounce. Yesterday, the contract advanced 0.95% or $10.90, to settle at $1163.50 per ounce, following weakness in the US dollar after the Federal Reserve’s minutes indicated that the central bank would be cautious in raising rates.
Currency
At 0330GMT today, the EUR is trading 0.01% higher against the USD at $1.1077, ahead of Germany’s report on trade balance and current account, scheduled in a few hours. Yesterday, the EUR strengthened 0.59% versus the USD, to close at $1.1076, as expectations of a last minute Greek deal supported the common currency.
At 0330GMT today, the GBP is trading 0.12% higher against the USD at $1.5381, ahead of Bank of England (BOE) interest rate decision, slated to release today. Yesterday, the GBP weakened 0.65% versus the USD, to close at $1.5362, after UK new budget proposal indicated a cut in the government’s spending.
Fixed Income
In the US, long term treasury prices rose and pushed yields lower, after the Fed minutes indicated that most officials wanted more information before hiking rates, with several citing concerns about Greece and China. Yesterday, yield on 10-year notes fell 5 basis points to 2.22%, while yield on 2-year notes lost 3 basis points to 0.55%. Meanwhile, 30-year bond yield fell 5 basis points to 2.99%.
Key Economic News
UK house price balance recorded a rise in June
House price balance climbed to 40.00 in June, in the UK, higher than market expectations of a rise to a level of 36.00. House price balance had registered a reading of 34.00 in the previous month.
UK Halifax house price index advanced more than expected in June
The Halifax house price index recorded a rise of 1.70% in the UK on a MoM basis in June, compared to a revised advance of 0.30% in the prior month. Markets were expecting the Halifax house price index to advance 0.30%.
UK Halifax house price index advanced more than expected in the April-June 2015 period
On an annual basis in the UK, the Halifax house price index advanced 9.60% in the April-June 2015 period, more than market expectations for an advance of 8.30%. In the March-May 2015 period, the Halifax house price index had advanced 8.60%.
French business sentiment index eased unexpectedly in June
In June, the business sentiment index registered an unexpected drop to 98.00 in France, compared to a reading of 99.00 in the prior month. Market expectation was for the business sentiment index to record a flat reading.
Federal Reserve remains cautious towards a rate hike, indicated FOMC meeting minutes
Minutes from the latest Federal Open Market Committee (FOMC) meeting revealed that majority of the policy makers felt that the conditions set to warrant a rate hike had not yet been achieved. The policy makers expressed concerns about the pace of economic growth outside of the US, particularly in China and the economic disruption that could result from the Greece debt default.
US composite leading indicator registered a drop in May
In the US, composite leading indicator eased to -0.01 in May. In the previous month, composite leading indicator had registered a revised reading of 0.00.
US mortgage applications advanced in the last week
Mortgage applications in the US advanced 4.60% in the week ended 03 July 2015 on a weekly basis. In the prior week, mortgage applications had dropped 4.70%.
US consumer credit advanced less than expected in May
In the US, consumer credit recorded a rise of USD 16.09 billion in May, lower than market expectations for a rise of USD 18.50 billion. In the previous month, consumer credit had risen by a revised USD 21.40 billion.
Canadian building permits declined more than expected in May
On a monthly basis, in May, building permits fell 14.50% in Canada, more than market expectations for a drop of 5.00%. Building permits had risen by a revised 12.10% in the previous month.
Japanese money supply M2+CD rose less than expected in June
On an annual basis, money supply M2+CD recorded a rise of 3.80% in Japan, in June, less than market expectations for an advance of 4.00%. In the prior month, money supply M2+CD had risen by a revised 4.10%.
Japanese machinery orders advanced more than expected in May
Machinery orders registered a rise of 19.30% in Japan on an annual basis in May, compared to an advance of 3.00% in the previous month. Market expectation was for machinery orders to advance 16.70%.
Japanese Eco Watchers Survey for future outlook registered a drop in June
Eco Watchers Survey for the future outlook in Japan dropped to 53.50 in June, lower than market expectations of a drop to 54.00. In the previous month, Eco Watchers Survey for the future outlook had recorded a level of 54.50.
Japanese investors turned net buyers of foreign bonds in the previous week
Japanese investors turned net buyers of ¥205.20 billion worth of foreign bonds in the week ended 03 July 2015, from being net sellers of a revised ¥42.80 billion worth of foreign bonds in the previous week.
Japanese Eco Watchers Survey for current situation slid in June
Eco Watchers Survey for the current situation in Japan recorded a drop to 51.00 in June, compared to a level of 53.30 in the prior month. Market anticipation was for Eco Watchers Survey for the current situation to ease to 53.00.
Foreign investors turned net sellers of Japanese stocks in the previous week
Foreign investors turned net sellers of ¥185.40 billion worth of Japanese stocks in the week ended 03 July 2015, as compared to being net buyers of a revised ¥298.00 billion worth of Japanese stocks in the previous week.
Japanese corporate bankruptcies dropped in June
On an annual basis, corporate bankruptcies in Japan eased 4.73% in June. In the prior month, corporate bankruptcies had fallen 13.18%.
Foreign investors turned net buyers of Japanese bonds in the previous week
Foreign investors turned net buyers of ¥476.50 billion worth of Japanese bonds in the week ended 03 July 2015, as compared to being net sellers of ¥1386.40 billion worth of Japanese bonds in the previous week.
Japanese M3 money supply advanced less than expected in June
In Japan, M3 money supply advanced 3.10% in June on a YoY basis, less than market expectations for an advance of 3.30%. M3 money supply had registered a rise of 3.30% in the previous month.
Japanese investors remained net buyers of foreign stocks in the previous week
Japanese investors remained net buyers of ¥483.80 billion worth of foreign stocks in the week ended 03 July 2015, as compared to being net buyers of ¥234.00 billion worth of foreign stocks in the prior week.
Japanese machinery orders climbed unexpectedly in May
Machinery orders recorded an unexpected rise of 0.60% on a monthly basis in May, in Japan, higher than market expectations for a fall of 5.00%. In the previous month, machinery orders had risen 3.80%.
Chinese consumer price index advanced more than expected in June
In China, the consumer price index registered a rise of 1.40% on a YoY basis in June, higher than market expectations for an advance of 1.30%. The consumer price index had risen 1.20% in the prior month.
Chinese consumer price index remained flat in June
On a monthly basis, the consumer price index remained flat in China, in June, higher than market expectations for a fall of 0.10%. In the prior month, the consumer price index had dropped 0.20%.
Chinese producer price index declined more than expected in June
On an annual basis in China, the producer price index slid 4.80% in June, higher than market expectations for a fall of 4.60%. In the prior month, the producer price index had registered a drop of 4.60%.
Economic Calendar
| Country | BST | Economic Indicator | Consensus/
*Actuals |
Previous/
**Previous Estimate |
Frequency |
| UK | 0:01 | RICS Housing Price Balance (Jun) | 40.00%* | 34.00% | Monthly |
| 10:30 | Foreign currency reserves (Jun) | – | $10147.00 mn | Monthly | |
| 10:30 | Gross Official reserve assets, $ million (Jun) | – | $29057.00 mn | Monthly | |
| 12:00 | BoE Interest Rate Decision | 0.50% | 0.50% | As scheduled | |
| 12:00 | BoE Asset Purchase Facility | £375.00 bn | £375.00 bn | As scheduled | |
| Eurozone | 9:30 | ECB Member Noyer Speaks in Paris on Credit-Card System | – | – | As scheduled |
| Germany | 7:00 | Current Account n.s.a. (May) | €16.00 bn | €19.60 bn | Monthly |
| 7:00 | Exports s.a. (MoM) (May) | -0.80% | 1.90% | Monthly | |
| 7:00 | Imports s.a. (MoM) (May) | 0.10% | -1.30% | Monthly | |
| 7:00 | Trade Balance s.a. (May) | €20.50 bn | €22.10 bn | Monthly | |
| Italy | 13:30 | Bank of Italy Deputy Director General Panetta in Senate | – | – | As scheduled |
| US | 10:45 | Fed’s Kocherlakota Speaks on Central Banks in Frankfurt | – | – | As scheduled |
| 13:30 | Continuing Jobless Claims (27-Jun) | – | 2264.00 K | Weekly | |
| 13:30 | Initial Jobless Claims (04-Jul) | 277.00 K | 281.00 K | Weekly | |
| 15:00 | Fed Governor Lael Brainard Speaks in Washington | – | – | As scheduled | |
| 15:30 | EIA Natural Gas Storage Change (03-Jul) | – | 69.00 Bcf | Weekly | |
| 18:00 | Fed’s George Speaks on Economy in Oklahoma | – | – | As scheduled | |
| Canada | 13:15 | Housing Starts s.a (Jun) | 190.00 K | 201.70 K | Monthly |
| 13:30 | New Housing Price Index (YoY) (May) | – | 1.10% | Monthly | |
| 13:30 | New Housing Price Index (MoM) (May) | 0.10% | 0.10% | Monthly | |
| Japan | 0:50 | Foreign Buying Japan Bonds (03-Jul) | ¥476.50 bn* | -¥1386.40 bn | Weekly |
| 0:50 | Foreign Buying Japan Stocks (03-Jul) | -¥185.40 bn* | ¥298.00 bn | Weekly | |
| 0:50 | Japan Buying Foreign Bonds (03-Jul) | ¥205.20 bn* | -¥42.80 bn | Weekly | |
| 0:50 | Japan Buying Foreign Stocks (03-Jul) | ¥483.80 bn* | ¥234.00 bn | Weekly | |
| 0:50 | Machinery Orders (MoM) (May) | 0.60%* | 3.80% | Monthly | |
| 0:50 | Machinery Orders (YoY) (May) | 19.30%* | 3.00% | Monthly | |
| 0:50 | Money Supply M3 (YoY) (Jun) | 3.10%* | 3.30% | Monthly | |
| 0:50 | Money Supply M2+CD (YoY) (Jun) | 3.80%* | 4.10% | Monthly | |
| 3:00 | Tokyo Average Office Vacancies (Jun) | 5.12%* | 5.17% | Monthly | |
| 7:00 | Machine Tool Orders (YoY) (Jun) (P) | – | 15.00% | Monthly | |
| China | 2:30 | Consumer Price Index (YoY) (Jun) | 1.40%* | 1.20% | Monthly |
| 2:30 | Producer Price Index (YoY) (Jun) | -4.80%* | -4.60% | Monthly | |
| 2:30 | Consumer Price Index (MoM) (Jun) | 0.00%* | -0.20% | Monthly |
