UK Market Snapshot
UK markets finished lower yesterday, after no concrete measures were put forward by Greece in the Euro-zone finance ministers’ meeting that took place yesterday. Meanwhile, the NIESR estimate of UK GDP growth for three months in June rose compared to the three-month period ending May. Weir Group dropped 5.0%, after the company acquired US-based Delta Industrial Valves in a deal worth about £30 million. Oil companies, Royal Dutch Shell, BG Group and BP Plc fell 2.0%, 2.5% and 2.6% respectively, amid a drop in crude oil prices. Marks & Spencer Group declined 2.2%, as it recorded a fall in sales for the first quarter. On the upside, Astrazeneca gained 1.0%, after a top broker initiated coverage on its shares. Real estate stocks, British Land Company and Land Securities Group rose 1.3% and 1.6%, respectively. The FTSE 100 declined 1.6%, to close at 6,432.2, while the FTSE 250 fell 1.3%, to settle at 17,212.9.
US Market Snapshot
US markets closed higher yesterday, as investors shrugged off the ongoing Greek crisis and concentrated on the positive macro data on the US trade deficit and increase in job openings in May. Meanwhile, investors would keep a close eye on the FOMC minutes, scheduled later in the day. Duke Energy Corp rose 3.3%, following an increase of 3.8% in its quarterly dividend payout. Nike advanced 1.3%, as the sportswear company entered into a contract with the University of Michigan to be its sports partner till 2027. Sony Corp gained 0.5%, amid ongoing news that Yahoo Japan would invest $14.7 million in its real estate business. On the contrary, Advanced Micro Devices plunged 15.4%, after the company reported a decline in its second quarter earnings amid weak demand for personal computers. Tesla Motors fell 4.2%, after a leading broker downgraded the rating on the shares to ‘Hold’ from ‘Buy’. The S&P 500 gained 0.6%, to settle at 2,081.3. The DJIA rose 0.5%, to settle at 17,776.9, while the NASDAQ advanced 0.1%, to close at 4,997.5.
Europe Market Snapshot
Other European markets finished lower yesterday, after a meeting of Euro area officials failed to make any significant progress in solving the Greek debt crisis. Technip plunged 8.3%, after the firm announced that it would slash 6,000 jobs and reduce its fleet of oil-service ships in a restructuring plan aimed at lowering costs amid the slump in oil prices. Banking stocks, Banco Popular and Banca Monte dei Paschi di Siena fell 2.0% and 7.5% respectively, extending their recent weakness. ABB dropped 2.0%, after a broker lowered its price target on the stock. On the upside, Axel Springer advanced 2.2%, amid reports that the company is in discussions to merge with ProSiebenSat. The FTSEurofirst 300 index declined 1.6%, to close at 1,476.5. Among other European markets, the German DAX Xetra 30 slid 2.0%, to close at 10,676.8, while the French CAC-40 shed 2.3%, to settle at 4,604.6.
Asia Market Snapshot
Markets in Asia are trading sharply lower this morning, with European leaders giving Greece time until Sunday to submit a new plans of reforms, while China’s Shanghai Composite Index extended its rout and dropped to a three-month low. In Hong Kong, brokerage firms, Citic Securities and Huatai Securities have slumped 12.3% and 14.8% respectively, extending their recent plunge, while banking stocks, Industrial and Commercial Bank of China and China Minsheng Banking have tanked 7.1% and 8.7% respectively. In Japan, FamilyMart has dropped 2.5%, despite announcing a 20% increase in its quarterly earnings before tax. Aeon has declined 1.3%, after a report indicated that the firm was exploring the purchase of Tesco’s Malaysian unit for close to $1.4 billion. In South Korea, Daewoong Pharmaceutical and Hyundai Pharmaceutical have tumbled 6.1% each. The Nikkei 225 index is trading 2.0% lower at 19,972.0. The Hang Seng index is trading 4.4% down at 23,879.5, while the Kospi index is trading 1.1% lower at 2,017.4.
Key Corporate Releases Today
UK
| Full Year Consensus | ||||
| Company Name | Results | Currency | Estimated EPS | Estimated Revenue (Mn) |
| Micro Focus International Plc | Final | USD | 1.19 | 811.50 |
| Daejan Holdings Plc | Final | GBP | – | – |
US
| Full Year Consensus | ||||
| Company Name | Results | Currency | Estimated EPS | Estimated Revenue (Mn) |
| Alcoa Inc | Q2 | USD | 0.91 | 23,622.60 |
| WD-40 Co | Q3 | USD | 3.11 | 394.50 |
| DragonWave Inc | Q1 | USD | – | – |
Note: All Estimates are for Full Year
Key Corporate Announcements Today
AGMs
Active Energy Group, Biotech Growth Trust (The), Booker Group, Capital Gearing Trust, Great Portland Estates, Northern 3 VCT, Palace Capital , Sainsbury (J), Shires Income, UK Mail Group .
Final Dividend Payment Date
Air China Ltd., London Security, Restaurant Group, Tarsus Group.
Interim Dividend Payment Date
Cardiff Property, HSBC Holdings.
Special Ex-Dividend Payment Date
3i Infrastructure
Trading Announcements
Booker Group, Galliford Try, Taylor Wimpey, Great Portland Estates, The Unite Group, Dechra Pharmaceuticals.
Key Corporate Announcements for Tomorrow
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.
Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0330GMT today, Brent crude oil one month futures contract is trading 0.47% or $0.27 lower at $56.58 per barrel, ahead of the Energy Information Administration weekly oil inventory data, scheduled to be released later today. Yesterday, the contract climbed 0.55% or $0.31, to settle at $56.85 per barrel, as the American Petroleum Institute (API) reported a 958,000 barrels decline in US inventories for the week ending July 3. Moreover, there are fears of an increase in global supplies once the Iranian nuclear pact is signed.
Gold
At 0330GMT today, Gold futures contract is trading marginally lower at $1152.50 per ounce. Yesterday, the contract declined 1.76% or $20.60, to settle at $1152.60 per ounce, as the strength in the dollar dented the demand for bullion.
Currency
At 0330GMT today, the EUR is trading 0.17% lower against the USD at $1.0992, ahead of the minutes from Fed Reserve’s meeting, scheduled to be held today. Yesterday, the EUR weakened 0.41% versus the USD, to close at $1.1011, after the industrial production of Germany remained flat on a monthly basis in May. In addition, the greenback got support from the US trade balance report for May.
At 0330GMT today, the GBP is trading 0.19% lower against the USD at $1.5432, ahead of the RICS Housing Price Balance, scheduled to be released later in the day. Yesterday, the GBP weakened 0.93% versus the USD, to close at $1.5462, amid a mixed bag of economic releases. The UK NIESR GDP estimate for three months ending June expanded at a rate of 0.7%. Industrial production in the UK unexpectedly jumped 0.4% MoM in May. However, the manufacturing production of the country retreated 0.6% for the same month.
Fixed Income
In the US, long term treasury prices rose and pushed yields lower, with yield on 10-year notes falling to its lowest level in almost a month, as investors flocked to the safety of US treasuries amid uncertainty over Greece’s future in the Eurozone. Yesterday, yield on 10-year notes fell 3 basis points to 2.27%, while yield on 2-year notes lost 2 basis points to 0.58%. Meanwhile, 30-year bond yield fell 4 basis points to 3.04%.
Key Economic News
UK industrial production surprisingly advanced in May
Industrial production unexpectedly climbed 0.40% on a monthly basis in the UK in May, higher than market expectations for a drop of 0.20%. In the previous month, industrial production had registered a revised rise of 0.30%.
UK BRC shop price index advanced in June
In the UK, the BRC shop price index advanced 0.20% on a monthly basis, in June. In the prior month, the BRC shop price index had fallen 0.20%.
UK manufacturing production unexpectedly slid in May
On a monthly basis, manufacturing production recorded an unexpected drop of 0.60% in May, in the UK, less than market expectations for an advance of 0.10%. In the prior month, manufacturing production had fallen 0.40%.
UK NIESR estimated GDP advanced in the April-June 2015 period
In the April-June 2015 period, NIESR estimated gross domestic product (GDP) advanced 0.70% in the UK. In the March-May 2015 period, NIESR estimated GDP had climbed 0.60%.
UK manufacturing production rose less than expected in May
In May, manufacturing production in the UK rose 1.00% on a YoY basis, compared to a revised advance of 0.10% in the previous month. Markets were anticipating manufacturing production to advance 1.80%.
UK BRC shop price index dropped in June
On an annual basis, the BRC shop price index in the UK registered a drop of 1.30% in June. The BRC shop price index had recorded a drop of 1.90% in the prior month.
UK industrial production advanced more than expected in May
On an annual basis in May, industrial production climbed 2.10% in the UK, compared to an advance of 1.20% in the previous month. Market expectation was for industrial production to climb 1.60%.
German industrial production rose less than expected in May
In May, the non-seasonally & working day adjusted industrial production advanced 2.10% on a YoY basis in Germany, compared to a revised advance of 1.10% in the prior month. Market expectation was for industrial production to advance 2.60%.
German industrial production remained steady in May
In May, the seasonally adjusted industrial production in Germany remained flat on a MoM basis, less than market expectations for an advance of 0.10%. Industrial production had risen by a revised 0.60% in the prior month.
French trade deficit expanded in May
In May, trade deficit in France expanded to €4.02 billion, following a revised trade deficit of €3.31 billion in the previous month. Market expectation was for the nation to register a trade deficit of €3.30 billion.
French exports declined in May
Exports registered a drop to €37.90 billion in May, in France. Exports had recorded a level of €38.20 billion in the prior month.
French imports climbed in May
Imports advanced to €41.90 billion in France, in May. In the prior month, imports had recorded a level of €41.20 billion.
French budget deficit widened in May
Budget deficit in France rose to €63.90 billion in May. France had registered a budget deficit of €59.80 billion in the previous month.
Swiss foreign currency reserves declined in June
In Switzerland, foreign currency reserves recorded a drop to CHF 516.20 billion in June, compared to a revised level of CHF 517.70 billion in the previous month. Market expectation was for foreign currency reserves to fall to a level of CHF 515.70 billion.
Swiss unemployment rate steadied in June
The seasonally adjusted unemployment rate in Switzerland remained flat at a level of 3.30% in June, meeting market expectations.
Swiss unemployment rate eased in June
In June, the non-seasonally adjusted unemployment rate eased to 3.10% in Switzerland, at par with market expectations. In the prior month, unemployment rate had recorded a level of 3.20%.
US economic optimism index steadied in July
In July, the economic optimism index in the US remained flat at a level of 48.10, lower than market expectations of an advance to a level of 48.80.
US Redbook index rose in the last week
The Redbook index in the US advanced 2.00% on an annual basis, in the week ended 03 July 2015. The Redbook index had recorded a rise of 1.70% in the previous week.
US trade deficit expanded in May
Trade deficit in the US rose to $41.87 billion in May, from a revised trade deficit of $40.70 billion in the previous month. Market anticipation was for the country’s trade deficit to widen to $42.75 billion.
US JOLTs job openings rose unexpectedly in May
In the US, JOLTs job openings advanced unexpectedly to a level of 5363.00 K in May, compared to market expectations of a drop to a level of 5300.00 K. In the previous month, JOLTs job openings had registered a revised level of 5334.00 K.
US Redbook index slid in the last week
On a monthly basis, the seasonally adjusted Redbook index slid 1.40% in the week ended 03 July 2015, in the US. The Redbook index had registered a drop of 1.50% in the prior week.
Canadian international merchandise trade deficit rose in May
The international merchandise trade deficit in Canada expanded to C$3.34 billion in May, compared to a revised international merchandise trade deficit of C$2.99 billion in the prior month. Market expectation was for the nation to record an international merchandise trade deficit of C$2.50 billion.
Japanese (BOP basis) trade deficit slid in May
Cabinet Office Japan has reported that (BOP basis) trade deficit in Japan narrowed to ¥47.30 billion in May, less than market expectations of a (BOP basis) trade deficit of ¥287.50 billion. Japan had reported a (BOP basis) trade deficit of ¥146.20 billion in the prior month.
Japanese bank lending including trusts climbed in June
Bank lending including trusts in Japan rose 2.50% in June on an annual basis. In the prior month, bank lending including trusts had risen 2.60%.
Japanese bank lending ex-trust advanced more than expected in June
In June, on a YoY basis, bank lending ex-trust in Japan registered a rise of 2.60%, compared to a revised rise of 2.70% in the previous month. Market anticipation was for bank lending ex-trust to rise 2.50%.
Japanese adjusted (total) current account surplus widened in May
Japan reported an adjusted (total) current account surplus of ¥1636.30 billion in May, from an adjusted (total) current account surplus of ¥1274.20 billion in the prior month. Markets were anticipating the nation to register an adjusted (total) current account surplus of ¥1375.20 billion.
Japanese current account surplus rose in May
In May, the non-seasonally adjusted current account surplus in Japan expanded to ¥1880.90 billion, compared to market expectations of a current account surplus of ¥1563.60 billion. Japan had registered a current account surplus of ¥1326.40 billion in the prior month.
Economic Calendar
| Country | BST | Economic Indicator | Consensus/
*Actuals |
Previous/
**Previous Estimate |
Frequency |
| UK | 0:01 | BRC Shop Price Index (MoM) (Jun) | 0.20%* | -0.20% | Monthly |
| 0:01 | BRC Shop Price Index (YoY) (Jun) | -1.30%* | -1.90% | Monthly | |
| 8:00 | Halifax House Prices (3m/YoY) (Jun) | 8.30% | 8.60% | Monthly | |
| 8:00 | Halifax House Prices (MoM) (Jun) | 0.30% | -0.10% | 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 | Composite leading indicator (May) | – | 100.00 | Monthly | |
| 13:30 | Budget Report | – | – | As scheduled | |
| Eurozone | 7:00 | EU Extraordinary Economic Summit | – | – | As scheduled |
| 9:00 | ECB’s Nowotny Speaks in Vienna | – | – | As scheduled | |
| 10:00 | ECB Board Member Coeure Speaks on Role of Euro | – | – | As scheduled | |
| 12:00 | Composite leading indicator (May) | – | 100.70 | Monthly | |
| – | ECB Governing Member, BOF Governor Noyer Speaks at Conference | – | – | As scheduled | |
| Germany | 10:30 | Germany to Sell EUR3 Bln 0.0% 2017 Bonds | – | – | As scheduled |
| 12:00 | Composite leading indicator (May) | – | 99.90 | Monthly | |
| France | 7:30 | Bank of France Business Sentiment (Jun) | 99.00 | 99.00 | Monthly |
| 12:00 | Composite leading indicator (May) | – | 100.80 | Monthly | |
| Italy | 9:00 | Padoan, ECB’s Visco Attend Banking Lobby’s Annual Meeting | – | – | As scheduled |
| 12:00 | Composite leading indicator (May) | – | 101.00 | Monthly | |
| Spain | 12:00 | Composite leading indicator (May) | – | 102.20 | Monthly |
| US | 12:00 | Composite leading indicator (May) | – | 99.50 | Monthly |
| 12:00 | MBA Mortgage Applications (03-Jul) | – | -4.70% | Weekly | |
| 15:30 | DOE Cushing OK Crude Inventory (Barrels) (03-Jul) | – | 123.00 K barrels | Weekly | |
| 15:30 | DOE Distillate Inventory (03-Jul) | – | 392.00 K barrels | Weekly | |
| 15:30 | DOE Gasoline Inventories (03-Jul) | – | -1757.00 K barrels | Weekly | |
| 15:30 | EIA Crude Oil Stocks Change (Barrels) (03-Jul) | -1.00 mn barrels | 2.39 mn barrels | Weekly | |
| 19:00 | Fed Releases Minutes of FOMC Meeting | – | – | As scheduled | |
| 19:00 | Fed’s Williams Speaks on Outlook in Los Angeles | – | – | As scheduled | |
| 20:00 | Consumer Credit Change (May) | $18.50 bn | $20.54 bn | Monthly | |
| Canada | 13:30 | Building Permits (MoM) (May) | -5.00% | 11.60% | Monthly |
| Japan | 0:50 | Bank Lending including Trusts (YoY) (Jun) | 2.50%* | 2.60% | Monthly |
| 0:50 | Bank Lending ex-Trust (YoY) (Jun) | 2.60%* | 2.70% | Monthly | |
| 0:50 | Adjusted Current Account Total (May) | ¥1636.30 bn* | ¥1274.20 bn | Monthly | |
| 0:50 | Current Account n.s.a. (May) | ¥1880.90 bn* | ¥1326.40 bn | Monthly | |
| 0:50 | Trade Balance – BOP Basis (May) | -¥47.30 bn* | -¥146.20 bn | Monthly | |
| 5:30 | Bankruptcies (YoY) (Jun) | – | -13.18% | Monthly | |
| 6:00 | Eco Watchers Survey: Current (Jun) | 53.00 | 53.30 | Monthly | |
| 6:00 | Eco Watchers Survey: Outlook (Jun) | 54.00 | 54.50 | Monthly | |
| 12:00 | Composite leading indicator (May) | – | 100.00 | Monthly | |
| China | 12:00 | Composite leading indicator (May) | – | 97.50 | Monthly |
