UK Market Snapshot
UK markets finished mixed yesterday, following a decline in real estate firms as higher inflation in July raised expectations of an interest rate hike by the BoE. Taylor Wimpey and Barratt Developments dropped 0.6% and 1.9% respectively. Persimmon shed 1.7%, despite posting a significant advance in its first half earnings. Cairn Energy plunged 7.3%, after its loss worsened in first half of the year. Mining stocks, Anglo American and BHP Billiton fell 1.8% and 1.9% respectively. Royal Dutch Shell slid 1.6%, as it was granted permission by the US Government for exploration of oil and natural gas in the Arctic Ocean. On the upside, Glencore rose 3.6%, ahead of its half yearly results scheduled to release today amid news that it was contemplating over the closure of its Eland platinum mine in South Africa because of decline in prices. The FTSE 100 declined 0.4%, to close at 6,526.3, while the FTSE 250 rose 0.05%, to settle at 17,616.9.
US Market Snapshot
US markets closed lower yesterday, as decline in commodity shares masked positive report on housing market. Meanwhile, all eyes would be on the FOMC minutes which are scheduled to release today. Freeport McMoRan shed 3.1%, following a drop in copper prices. Wal-Mart Stores slid 3.4%, after the retail giant reduced its profit guidance for the year as it reported disappointing results for the quarter ended 31 July. Bucking the trend, National Penn Bancshares surged 16.8%, after BB&T, down 0.3%, decided to acquire the company in a deal worth about $1.8 billion. TJX Cos climbed 7.2%, as it reported better than anticipated sales for the second quarter. Home Depot advanced 2.6%, after raising its outlook for the year. The S&P 500 slipped 0.3%, to settle at 2,096.9. The DJIA shed 0.2%, to settle at 17,511.3, while the NASDAQ slid 0.6%, to close at 5,059.3.
Europe Market Snapshot
Other European markets finished mostly lower yesterday, amid persistent pressure on commodity stocks. RWE AG fell 3.9%, after a leading broker downgraded its rating on the stock to ‘Sell’ from ‘Hold’. Energy firms, Total and Technip declined 1.7% and 2.0% respectively. Auto parts makers, Michelin and Valeo slid 1.1% and 2.0% respectively. Luxury goods companies, Richemont and Swatch Group shed 1.0% and 1.8% respectively. On the contrary, Wirecard AG advanced 7.0%, after it confirmed its outlook for the full year and reported a considerable increase in its second quarter earnings. Jyske Bank added 4.6%, as it posted better than expected second quarter earnings. Financial firms, Credit Suisse Group and Julius Baer Group gained 0.6% and 0.8% respectively. The FTSEurofirst 300 index gained 0.2%, to close at 1,535.5. Among other European markets, the German DAX Xetra 30 slid 0.2%, to close at 10,915.9, while the French CAC-40 shed 0.3%, to settle at 4,971.3.
Asia Market Snapshot
Markets in Asia are trading lower this morning. Meanwhile, Shanghai Composite Index has shed more than 3.0%, extending its 6.2% plunge from previous session. In Japan, Murata Manufacturing has dropped 3.7%, amid demand concerns from China. Daiichi Sankyo has slid 2.6%, after a broker downgraded its rating on the stock. On the contrary, Toshiba has soared 8.3%, after it announced to reorganize its board of directors on Tuesday. SoftBank Group has advanced 1.6%, after it collaborated with Alibaba and Foxconn to invest $500 million in India’s e-commerce firm Snapdeal. In Hong Kong, China Petroleum & Chemical and PetroChina have fallen 1.4% and 1.5% respectively. In South Korea, LG Household & Healthcare and AmorePacific have declined 4.0% and 6.2% respectively. The Nikkei 225 index is trading 0.5% lower at 20,448.5. The Hang Seng index is trading 1.0% down at 23,247.3, while the Kospi index is trading 1.6% lower at 1,925.8.
Key Corporate Releases Today
UK
| Full Year Consensus | ||||
| Company Name | Results | Currency | Estimated EPS | Estimated Revenue (Mn) |
| Glencore Plc | Interim | USD | 0.19 | 179,822.10 |
| Hikma Pharmaceuticals Plc | Interim | USD | 1.37 | 1,537.78 |
| EnQuest Plc | Interim | USD | 0.01 | 941.70 |
| Admiral Group Plc | Interim | GBP | 0.93 | 923.00 |
| Hochschild Mining Plc | Interim | USD | (0.06) | 499.62 |
| Gem Diamonds Ltd | Interim | USD | 0.17 | 250.18 |
| MirLand Development Corporation Plc | Interim | USD | 35.00 | 187.00 |
| Inspired Energy Plc | Interim | GBP | 0.01 | 12.80 |
| Plaza Centers NV | Interim | EUR | – | – |
US
| Full Year Consensus | ||||
| Company Name | Results | Currency | Estimated EPS | Estimated Revenue (Mn) |
| Target Corp | Q2 | USD | 4.61 | 74,355.30 |
| Lowe’s Companies Inc | Q2 | USD | 3.28 | 58,809.80 |
| Staples Inc | Q2 | USD | 0.97 | 22,572.00 |
| L Brands Inc | Q2 | USD | 3.41 | 11,423.00 |
| Hormel Foods Corp | Q3 | USD | 2.54 | 9,550.73 |
| SpartanNash Co | Q2 | USD | 1.96 | 7,913.14 |
| NetApp Inc | Q1 | USD | 2.77 | 6,173.95 |
| American Eagle Outfitters Inc | Q2 | USD | 0.61 | 3,268.00 |
| Keysight Technologies Inc | Q3 | USD | 2.34 | 2,820.33 |
| Synopsys Inc | Q3 | USD | 2.78 | 2,225.08 |
| Eaton Vance Corp | Q3 | USD | 2.41 | 1,441.09 |
| Citi Trends Inc | Q2 | USD | 0.60 | 664.30 |
| Semtech Corp | Q2 | USD | 1.52 | 557.59 |
| CNinsure Inc | Q2 | USD | 0.42 | 447.84 |
| Popeyes Louisiana Kitchen Inc | Q2 | USD | 1.91 | 266.76 |
| Momo Inc | Q2 | USD | 0.17 | 163.27 |
| Astro-Med Inc | Q2 | USD | 0.72 | 100.49 |
| Immunomedics Inc | Q4 | USD | (1.75) | – |
| Auris Medical Holding AG | Q2 | USD | (1.02) | – |
| American Shared Hospital Services | Q2 | USD | – | – |
| Axion Power International Inc | Q2 | USD | – | – |
| Kingold Jewelry Inc | Q2 | USD | – | – |
Note: All Estimates are for Full Year
Key Corporate Announcements Today
AGMs
General Industries, Mountview Estates
EGMs
Global Invacom Group Limited (DI)
Final Dividend Payment Date
Bacit Limited, Halma
Interim Dividend Payment Date
Shoe Zone
Trading Announcements
Imperial Tobacco Group
Key Corporate Announcements for Tomorrow
AGMs
Marimedia (DI)
Final Ex-Dividend Date
Aberdeen Private Equity Fund Ltd. Sterling Part Shares, First Property Group, JPMorgan Brazil Inv Trust, Lindsell Train Inv Trust, Northgate, PHSC, red24, World Trust Fund
Final Dividend Payment Date
Development Securities
Interim Ex-Dividend Date
British American Tobacco, Dairy Farm International Holdings Ltd (Bermuda), Dairy Farm International Holdings Ltd. (Jersey), Dairy Farm International Holdings Ltd. (Singapore), FDM Group (Holdings), Fidessa Group, Ground Rents Income Fund, Hammerson, Henderson Opportunities Trust, Hongkong Land Holding Ltd. (Bermuda), Hongkong Land Holding Ltd. (Jersey), Hongkong Land Holding Ltd. (Sing.Reg), Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Matheson Holdings Ltd. (Bermuda), Jardine Matheson Holdings Ltd. (Jersey), Jardine Strategic Holdingd Ltd. (Bermuda), Jardine Strategic Holdings Ltd. (Singapore), Jarvis Securities, Jupiter Primadona Growth Trust, Mandarin Oriental International (Bermuda), Mandarin Oriental International (Jersey), Mandarin Oriental International (Singapore), Mobeus Income & Growth 4 Vct, Mobeus Income & Growth Vct, Mondi, Partnership Assurance Group, Prudential, Quartix Holdings, Scottish American Inv Company, Secure Trust Bank, SEGRO, Seneca Global Income & Growth Trust, Taylor Wimpey, The Renewables Infrastructure Group Limited, Threadneedle UK Select Trust Limited, TwentyFour Select Monthly Income Fund Limited, VPC Specialty Lending Investments, Witan Inv Trust
Special Ex-Dividend Payment Date
Lindsell Train Inv Trust
Quarterly Payment Date
Fair Oaks Income Fund Limited, SQN Asset Finance Income Fund Limited
Quarterly Ex-Dividend Date
Brunner Inv Trust, Carnival, M Winkworth, Raven Russia Ltd. Cum Red Pref Shares, Utilico Investments Ltd (DI)
Trading Announcements
WH Smith
Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0330GMT today, Brent crude oil one month futures contract is trading 0.41% or $0.20 lower at $48.61 per barrel, ahead of the Energy Information Administration’s weekly oil inventory data, scheduled to be released later today. Yesterday, the contract climbed 0.14% or $0.07, to settle at $48.81 per barrel, amid bargain buying. Meanwhile, the API report stated that the US crude oil supply dropped by 2.3 million barrels for the week ended 14 August.
Gold
At 0330GMT today, Gold futures contract is trading 0.02% or $0.20 higher at $1117.30 per ounce. Yesterday, the contract declined 0.13% or $1.50, to settle at $1117.10 per ounce, after upbeat US house-building data fuelled expectations that the Federal Reserve would raise interest rates in the near future.
Currency
At 0330GMT today, the EUR is trading 0.21% higher against the USD at $1.1045, ahead of the Euro-zone’s current account data for June, slated to be released in a few hours. Yesterday, the EUR weakened 0.51% versus the USD, to close at $1.1022.
At 0330GMT today, the GBP is trading 0.06% higher against the USD at $1.5669. Meanwhile, investors would closely assess the US inflation data for July, scheduled to be release later today. Yesterday, the GBP strengthened 0.47% versus the USD, to close at $1.5661, as the pound found support after UK’s CPI rose unexpectedly in July. In other news, US housing starts advanced to about an eight year high in July.
Fixed Income
In the US, long term treasury prices fell and pushed yields higher, after robust data on the US housing market raised hopes that economy is on the right track. Yesterday, yield on 10-year notes rose 4 basis points to 2.20%, while yield on 2-year notes gained 2 basis points to 0.74%. Meanwhile, 30-year bond yield rose 6 basis points to 2.87%.
