UK Market Snapshot
UK markets finished higher yesterday, after Greece clinched a third bailout package from its international creditors. Alent surged 44.2%, after US-based Platform Specialty Products agreed to acquire the chemical company in a deal worth £1.35 billion. International Consolidated Airlines Group rose 3.4%, after a broker upgraded its rating on the stock to ‘Buy’ from ‘Neutral’ and also raised the target price, citing growth prospects. Barclays gained 2.1%, following news that it could acquire another bank as part of the ring fencing plan in retail banking operations and put up its investment bank as a standalone division. On the downside, International Personal Finance plunged 25.2%, as the company assessed the possible impact of Polish draft law, which if introduced in its current form, could have a negative financial impact on the firm. The FTSE 100 advanced 1.0%, to close at 6,738.0, while the FTSE 250 rose 1.3%, to settle at 17,708.9.
US Market Snapshot
US markets closed higher yesterday, after Greece reached an agreement with its creditors, thereby prevented its exit from the Eurozone. Meanwhile, the US monthly budget data came in better than expected in June. Anacor Pharmaceuticals surged 55.9%, after its drug for treating dermatitis proved successful in final-stage trials. MarkWest Energy Partners soared 14.0%, following news that refiner Marathon Petroleum had planned to acquire the natural gas company in a deal valued at $15.8 billion. Apple rose 1.9%, after a leading broker reiterated its ‘Buy’ rating on the stock, stating that the tech giant had a 92% share in the entire smartphone business profits for the first quarter. On the contrary, Ascena Retail Group fell 12.7%, as the retailer trimmed its projected earnings for the year amid lower than expected sales at its Justice and Dressbarn stores. The S&P 500 gained 1.1%, to settle at 2,099.6. The DJIA rose 1.2%, to settle at 17,977.7, while the NASDAQ advanced 1.5%, to close at 5,071.5.
Europe Market Snapshot
Other European markets finished higher yesterday, after European leaders reached a deal over a third bailout program for Greece, agreeing to give the nation up to €86 billion in fresh aid, provided the Greek government implements a round of austerity measures in the coming days. Banking stocks, Societe Generale and Deutsche Bank advanced 2.6% and 2.9% respectively. Sanofi climbed 2.8%, following a broker upgrade on the stock to ‘Buy’ from ‘Hold’. Bucking the trend, DKSH Holding fell 2.3%, after its ‘Maurice Lacroix’ watch brand was put up for sale, amid a strong Franc and weak demand from Asia. The FTSEurofirst 300 index gained 1.9%, to close at 1,572.1. Among other European markets, the German DAX Xetra 30 rose 1.5%, to close at 11,484.4, while the French CAC-40 advanced 1.9%, to settle at 4,998.1.
Asia Market Snapshot
Markets in Asia are trading mostly higher this morning, with Chinese stocks rallying for a fourth consecutive day, after swinging between gains and losses. In Japan, Disco Corp has jumped 4.5%, after a report indicated that the firm would post record quarterly earnings. Export majors, Hitachi and Toshiba have advanced 1.7% and 2.2% respectively, amid a weaken Yen. In Hong Kong, casino firms, Sands China and Melco International Development have surged 7.3% and 10.2% respectively, after news emerged that authorities might ease anti-smoking rules at casinos. On the downside, Brilliance China Automotive Holding has tumbled 6.9%, after warning of a considerable decline in its half-yearly earnings. In South Korea, POSCO has jumped 3.3%, while Kia Motors has dropped 1.1%. The Nikkei 225 index is trading 1.5% higher at 20,391.7. The Hang Seng index is trading 0.4% down at 25,118.8, while the Kospi index is trading marginally higher at 2,062.1.
Key Corporate Releases Today
UK
| Full Year Consensus | ||||
| Company Name | Results | Currency | Estimated EPS | Estimated Revenue (Mn) |
| Begbies Traynor Group | Final | GBP | 0.03 | 44.99 |
US
| Full Year Consensus | ||||
| Company Name | Results | Currency | Estimated EPS | Estimated Revenue (Mn) |
| JPMorgan Chase & Co | Q2 | USD | 5.85 | 98,215.00 |
| Wells Fargo & Co | Q2 | USD | 4.15 | 87,146.00 |
| Johnson & Johnson | Q2 | USD | 6.14 | 70,507.90 |
| Yum! Brands Inc | Q2 | USD | 3.48 | 14,068.50 |
| CSX Corp | Q2 | USD | 2.01 | 12,409.90 |
| Fastenal Co | Q2 | USD | 1.81 | 3,997.38 |
| AAR Corp | Q4 | USD | 1.18 | 1,789.97 |
| Healthcare Services Group Inc | Q2 | USD | 0.98 | 1,455.07 |
| Commerce Bancshares Inc | Q2 | USD | 2.69 | 1,098.82 |
| ADTRAN Inc | Q2 | USD | 0.49 | 604.94 |
| Cardinal Financial Corp | Q2 | USD | 1.36 | 164.39 |
| Peak Resorts Inc | Q4 | USD | 0.09 | 105.05 |
| Central Valley Community Bancorp | Q2 | USD | 0.85 | 41.90 |
| First Community Corp | Q2 | USD | 0.91 | 33.56 |
| Saratoga Investment Corp | Q1 | USD | 2.01 | 26.89 |
| Peregrine Pharmaceuticals Inc | Q4 | USD | (0.30) | 23.90 |
| Diamond Hill Investment Group Inc | Q2 | USD | – | – |
| Rocky Mountain Chocolate Factory Inc | Q1 | USD | – | – |
| AEHR Test Systems | Q4 | USD | – | – |
Note: All Estimates are for Full Year
Key Corporate Announcements Today
AGMs
Aberdeen Japan Investment Trust, Brown (N.) Group, Dairy Crest Group, Development Securities, Northern 2 VCT, Octopus Apollo VCT C, Prospex Oil and Gas, Rurelec, Software Radio Technology, Summit Therapeutics, TwentyFour Select Monthly Income Fund Limited, Next Fifteen Communications
EGMs
NewRiver Retail Limited
Interim Ex-Dividend Date
Banco Bilbao Vizcaya Argentaria SA
Interim Dividend Payment Date
Worldwide Healthcare Trust
Quarterly Ex-Dividend Date
Abbott Laboratories
Trading Announcements
DotDigital Group, Michael Page International, ITE Group, Firstgroup, Carillion, Polymetal International.
Key Corporate Announcements for Tomorrow
AGMs
1Spatial, BT Group, BTG, E2V Technologies, Griffin Mining Ltd., ICAP, Intermediate Capital Group, Macromac, RPC Group, Severn Trent, Speedy Hire, Stallion Resources, Syqic, Work Group, Workspace Group, Secured Property Developments
EGMs
San Leon Energy, ECR Minerals
Final Dividend Payment Date
Alliance Pharma, JPMorgan Euro Small Co. Trust, UTV Media
Interim Dividend Payment Date
Alternative Networks, Topps Tiles, Tritax Big Box Reit
Special Dividend Payment Date
Spirax-Sarco Engineering
Trading Announcements
Burberry Group, Halfords Group, OJSC Novolipetsk Steel GDS (Reg S), Workspace Group, Severn Trent, Intermediate Capital Group, City of London Investment Group, e2v technologies, Hochschild Mining, Icap, Moneysupermarket.com, JD Wetherspoon, Lavendon Group
Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0330GMT today, Brent crude oil one month futures contract is trading 0.71% or $0.41 lower at $57.44 per barrel. Yesterday, the contract declined 1.5% or $0.88, to settle at $57.85 per barrel, after OPEC’s closely watched monthly report indicated that the group’s total monthly production increased by 283,000 oil barrels per day in June compared with May. Moreover, the oil prices declined amid a strong dollar and expectations of additional oil supply from Iran.
Gold
At 0330GMT today, Gold futures contract is trading 0.09% or $1.00 lower at $1154.40 per ounce. Yesterday, the contract declined 0.22% or $2.50, to settle at $1155.40 per ounce, as demand for the metal dampened after an agreement was reached between Greece and its creditors for the bailout package.
Currency
At 0330GMT today, the EUR is trading 0.07% higher against the USD at $1.1010, ahead of Germany’s CPI data for June and Eurozone industrial production figures for May, slated to release in a few hours. Yesterday, the EUR weakened 1.46% versus the USD, to close at $1.1002, reversing its gains from the previous session.
At 0330GMT today, the GBP is trading marginally higher against the USD at $1.5489, ahead of the UK CPI data for June, scheduled to release in a few hours. Meanwhile, investors will closely monitor the US retail sales for June, slated to release later in the day. Yesterday, the GBP weakened 0.19% versus the USD, to close at $1.5487. In other economic news, UK’s retail sales across all sectors rose more than expected in June.
Fixed Income
In the US, long term treasury prices fell and pushed yields higher, with yield on 10-year notes recording their largest three-day surge in over a month, as investor risk appetite was boosted after Greece secured a new three-year bailout funding from its creditors in exchange for strict reform measures. Yesterday, yield on 10-year notes rose 2 basis points to 2.44%, while yield on 2-year notes gained 4 basis points to 0.69%. Meanwhile, 30-year bond yield rose 1 basis point to 3.21%.
Key Economic News
Greece bankruptcy averted, Eurozone leaders reach a bailout deal
Eurozone creditors have agreed to offer Greece a third bailout package worth about €86 billion over the next three years, after Greece agreed to pass reforms such as streamlining pensions, raising tax revenue and liberalising the labor market. European Commission Chief Jean-Claude Juncker opined that if there would not have been a deal, Greece would have been removed from the European Union.
UK retail sales across all sectors rose more than expected in June
In June, on an annual basis, retail sales across all sectors climbed 1.80% in the UK, more than market expectations for a rise of 0.50%. In the prior month, retail sales across all sectors had registered an unchanged reading.
US recorded budget surplus in June
The US has posted budget surplus of $51.78 billion in June, following a budget deficit of $82.40 billion in the prior month.
Japanese industrial production slid in May
In Japan, the final industrial production slid 3.90% on an annual basis, in May. Industrial production had recorded a rise of 0.10% in the previous month. The preliminary figures had indicated a drop of 4.00%.
Japanese tertiary industry index declined in May
The tertiary industry index slid 0.70% on a MoM basis in Japan, in May. The tertiary industry index had fallen by a revised 0.10% in the prior month.
Japanese capacity utilization recorded a drop in May
On a MoM basis, capacity utilization fell 3.00% in May, in Japan. In the previous month, capacity utilization had recorded a drop of 0.40%.
Japanese industrial production slid in May
In Japan, the final industrial production dropped 2.10% in May, on a MoM basis. In the prior month, industrial production had climbed 1.20%. The preliminary figures had recorded a fall of 2.20%.
Chinese aggregate financing climbed in June
In June, aggregate financing in China recorded a rise to CNY 1860.00 billion, compared to a revised reading of CNY 1219.60 billion in the prior month. Market anticipation was for aggregate financing to climb to a level of CNY 1400.00 billion.
Chinese M0 money supply rose more than expected in June
In June, M0 money supply recorded a rise of 2.90% on an annual basis in China, compared to an advance of 1.80% in the prior month. Market anticipation was for M0 money supply to advance 2.80%.
Chinese foreign exchange reserves surplus slid in 2Q 2015
China has posted foreign exchange reserves surplus of $3.69 trillion in 2Q 2015, from a foreign exchange reserves surplus of $3.73 trillion in the prior quarter. Markets were expecting a foreign exchange reserves surplus of $3.70 trillion.
Chinese M1 money supply rose more than expected in June
M1 money supply rose 4.30% on an annual basis in China, in June, compared to a rise of 4.70% in the prior month. Market anticipation was for M1 money supply to rise 4.20%.
Chinese M2 money supply advanced more than expected in June
On an annual basis, in June, M2 money supply climbed 11.80% in China, higher than market expectations for a rise of 11.00%. In the previous month, M2 money supply had climbed 10.80%.
Economic Calendar
| Country | BST | Economic Indicator | Consensus/
*Actuals |
Previous/
**Previous Estimate |
Frequency |
| UK | 0:01 | BRC Retail Sales Monitor – All (YoY) (Jun) | 1.80%* | 0.00% | Monthly |
| 9:30 | Retail Price Index Ex Food (Jun) | – | 258.50 | Monthly | |
| 9:30 | Producer Input Prices (Jun) | – | 107.10 | Monthly | |
| 9:30 | Producer Output Prices (Jun) | – | 99.00 | Monthly | |
| 9:30 | Retail Price Index (Jun) | 258.80 | 258.50 | Monthly | |
| 9:30 | Consumer Price Index (MoM) (Jun) | 0.10% | 0.20% | Monthly | |
| 9:30 | Consumer Price Index (YoY) (Jun) | 0.00% | 0.10% | Monthly | |
| 9:30 | Core Consumer Price Index (YoY) (Jun) | 0.90% | 0.90% | Monthly | |
| 9:30 | PPI Core Output (MoM) n.s.a (Jun) | 0.00% | 0.00% | Monthly | |
| 9:30 | PPI Core Output (YoY) n.s.a (Jun) | 0.10% | 0.10% | Monthly | |
| 9:30 | Producer Price Index – Input n.s.a (MoM) (Jun) | -0.80% | -0.90% | Monthly | |
| 9:30 | Producer Price Index – Input n.s.a (YoY) (Jun) | -11.80% | -12.00% | Monthly | |
| 9:30 | Producer Price Index – Output n.s.a (MoM) (Jun) | 0.10% | 0.10% | Monthly | |
| 9:30 | Producer Price Index – Output n.s.a (YoY) (Jun) | -1.50% | -1.60% | Monthly | |
| 9:30 | Retail Price Index (MoM) (Jun) | 0.10% | 0.20% | Monthly | |
| 9:30 | Retail Price Index (YoY) (Jun) | 1.00% | 1.00% | Monthly | |
| 9:30 | Retail Price Index Ex Mort Int.Payments (YoY) (Jun) | 1.00% | 1.10% | Monthly | |
| 9:30 | ONS House Price Index (YoY) (Jun) | 5.90% | 5.50% | Monthly | |
| Eurozone | 9:00 | ECB Publishes Bank Lending Survey | – | – | As scheduled |
| 10:00 | Industrial Production s.a. (MoM) (May) | 0.20% | 0.10% | Monthly | |
| 10:00 | Industrial Production w.d.a. (YoY) (May) | 2.00% | 0.80% | Monthly | |
| 10:00 | ZEW Survey – Economic Sentiment (Jul) | 51.10 | 53.70 | Monthly | |
| 15:45 | ECB’s Mersch Speaks at event in Frankfurt | – | – | As scheduled | |
| – | EcoFin Meeting | – | – | As scheduled | |
| Germany | 7:00 | Consumer Price Index (MoM) (Jun) (F) | -0.10% | -0.10%** | Monthly |
| 7:00 | Consumer Price Index (YoY) (Jun) (F) | 0.30% | 0.30%** | Monthly | |
| 7:00 | Harmonised Index of Consumer Prices (HICP) (MoM) (Jun) (F) | -0.20% | -0.10%** | Monthly | |
| 7:00 | Harmonised Index of Consumer Prices (HICP) (YoY) (Jun) (F) | 0.10% | 0.10%** | Monthly | |
| 10:00 | ZEW Survey – Current Situation (Jul) | 60.00 | 62.90 | Monthly | |
| 10:00 | ZEW Survey – Economic Sentiment (Jul) | 29.00 | 31.50 | Monthly | |
| Italy | 9:00 | Consumer Price Index (EU Norm) (MoM) (Jun) (F) | – | 0.10%** | Monthly |
| 9:00 | Consumer Price Index (EU Norm) (YoY) (Jun) (F) | – | 0.20%** | Monthly | |
| 9:00 | Consumer Price Index (MoM) (Jun) (F) | – | 0.10%** | Monthly | |
| 9:00 | Consumer Price Index (YoY) (Jun) (F) | – | 0.10%** | Monthly | |
| 9:00 | Bank of Italy Governor Visco Attends Conference in Rome | – | – | As scheduled | |
| Spain | 8:00 | Consumer Price Index (MoM) (Jul) | 0.30% | 0.30% | Monthly |
| 8:00 | Consumer Price Index (YoY) (Jun) (F) | 0.10% | 0.10%** | Monthly | |
| 8:00 | Harmonised Index of Consumer Prices (HICP) (MoM) (Jul) | 0.20% | 0.20% | Monthly | |
| 8:00 | Harmonised Index of Consumer Prices (HICP) (YoY) (Jun) (F) | 0.00% | 0.00%** | Monthly | |
| 9:30 | Spain to Sell 189-Day Bills | – | – | As scheduled | |
| 9:30 | Spain to Sell 364-Day Bills | – | – | As scheduled | |
| Switzerland | 8:15 | Producer and Import Prices (MoM) (Jun) | 0.00% | -0.80% | Monthly |
| 8:15 | Producer and Import Prices (YoY) (Jun) | -6.10% | -6.00% | Monthly | |
| US | 13:30 | Import Price Index (Jun) | – | 126.60 | Monthly |
| 13:30 | Export Price Index (Jun) | – | 125.80 | Monthly | |
| 13:30 | Export Price Index (YoY) (Jun) | – | -5.90% | Monthly | |
| 13:30 | Advance Retail Sales (MoM) (Jun) | 0.30% | 1.20% | Monthly | |
| 13:30 | Retail Sales Ex Auto & Gas (Jun) | 0.50% | 0.70% | Monthly | |
| 13:30 | Retail Sales ex Autos (MoM) (Jun) | 0.50% | 1.00% | Monthly | |
| 13:30 | Retail Sales “Control Group” (MoM) (Jun) | 0.40% | 0.70% | Monthly | |
| 13:30 | Export Price Index (MoM) (Jun) | 0.10% | 0.60% | Monthly | |
| 13:30 | Import Price Index (MoM) (Jun) | 0.10% | 1.30% | Monthly | |
| 13:30 | Import Price Index (YoY) (Jun) | -9.80% | -9.60% | Monthly | |
| 13:55 | Redbook Index (YoY) (10-Jul) | – | 2.00% | Weekly | |
| 13:55 | Redbook Index s.a. (MoM) (10-Jul) | – | -1.40% | Weekly | |
| 14:00 | NFIB Small Business Optimism (Jun) | 98.50 | 98.30 | Monthly | |
| 15:00 | Business Inventories (May) | 0.30% | 0.40% | Monthly | |
| Canada | 13:30 | Teranet/National Bank HP Index (Jun) | – | 169.97 | Monthly |
| 13:30 | Teranet/National Bank HPI (MoM) (Jun) | – | 0.90% | Monthly | |
| 13:30 | Teranet/National Bank HPI (YoY) (Jun) | – | 4.60% | Monthly | |
| Japan | 5:00 | Tokyo Condominium Sales (YoY) (Jun) | – | -18.70% | Monthly |
| China | 3:05 | M2 Money Supply (YoY) (Jun) | 11.80%* | 10.80% | Monthly |
| 3:05 | Aggregate Financing (Jun) | CNY1860.00 bn* | CNY1219.60 bn | Monthly | |
| 3:05 | M0 Money Supply (YoY) (Jun) | 2.90%* | 1.80% | Monthly | |
| 3:05 | M1 Money Supply (YoY) (Jun) | 4.30%* | 4.70% | Monthly | |
| 3:05 | Foreign Exchange Reserves (Q2) | $3.69 tn* | $3.73 tn | Quarterly | |
| – | FDI – Foreign Direct Investment (YTD) (YoY) (Jun) | – | 10.50% | Monthly | |
| – | New Yuan Loans (Jun) | CNY1050.00 bn | CNY900.80 bn | Monthly | |
| – | Actual FDI (YoY) (Jun) | 0.70% | 7.80% | Monthly |
