UK Market Snapshot
UK markets finished lower on Friday, as investors were anxious about the outcome of Sunday’s bailout referendum in Greece. Meanwhile, the Markit UK services PMI data was better than anticipated in June. Royal Bank of Scotland fell 1.9%, following news that the bank could have to pay a $13 billion fine regarding mis-selling of mortgage backed securities. Mining stocks, Glencore and BHP Billiton slid 1.2% and 1.9% respectively. Anglo American declined 1.7%, amid news that it might lay off 20% of its employees working at different head offices across the globe. Lenders, HSBC, Barclays and Standard Chartered dropped 0.9%, 1.3% and 2.1% respectively, after the antitrust agency in Brazil probed 15 international banks for their involvement in exchange rate manipulation between 2007 and 2013. BT Group fell 0.5%, after UK communications regulator, Ofcom fined its target company, EE for £1 million for its failure to meet customer service requirements. On the upside, Hammerson and Land Securities advanced 0.6% and 1.4% respectively. Greene King gained 0.8%, after a top broker upgraded its rating on the stock to ‘Buy’. The FTSE 100 declined 0.7%, to close at 6,585.8, while the FTSE 250 fell 0.4%, to settle at 17,613.5.
US Market Snapshot
The US markets were closed on Friday on account of Independence Day Observation. On Thursday, the S&P 500 slipped marginally, to settle at 2,076.8. The DJIA shed 0.2%, to settle at 17,730.1, while the NASDAQ slid 0.1%, to close at 5,009.2.
Europe Market Snapshot
Other European markets finished lower on Friday, as investors exercised caution and awaited the Greek referendum results, which would decide the nation’s future in the common currency union. Seadrill fell 3.4%, amid lower oil prices. Banking stocks, Banca Monte dei Paschi di Siena and Banco Popular Espanol fell 0.6% and 1.3%, extending their weekly declines. On the brighter side, K+S jumped 5.5%, as expectations of an improved acquisition offer from Canada’s Potash Corp. of Saskatchewan were triggered after the latter announced that it could address the firm’s concerns about its proposal. Pirelli climbed 0.5%, after China National Chemical Corp secured European Commission approval for its proposed €7.1 billion takeover of the firm. The FTSEurofirst 300 index declined 0.6%, to close at 1,518.4. Among other European markets, the German DAX Xetra 30 slid 0.4%, to close at 11,058.4, while the French CAC-40 shed 0.6%, to settle at 4,808.2.
Asia Market Snapshot
Markets in Asia are trading sharply lower this morning, as investor sentiments were dampened after Greece voted against the austerity measures required to win another bailout package, risking the country’s future in the Euro bloc. Meanwhile, the Chinese markets have rallied after the nation’s government launched policies to shore up its equity markets, which included the suspension of initial public offerings and the central bank’s efforts to provide liquidity support for margin trading. In Japan, Toshiba has declined 2.7%, amid reports that the firm would lower its prior year’s earnings by nearly $1.2 billion amid accounting errors. Firms with large exposure to Europe, Mazda Motor and Ricoh have dropped 3.0% and 3.1% respectively. In Hong Kong, Lenovo Group has tumbled 6.9%, after a leading broker lowered its price target on the stock. In South Korea, Hyundai Motor and Samsung Electronics have fallen 1.5% and 2.1% respectively. The Nikkei 225 index is trading 1.6% lower at 20,215.2. The Hang Seng index is trading 3.2% down at 25,241.5, while the Kospi index is trading 1.7% lower at 2,068.9.
Key Corporate Releases Today
UK
| Full Year Consensus | ||||
| Company Name | Results | Currency | Estimated EPS | Estimated Revenue (Mn) |
| RM Plc | Interim | GBP | 0.15 | 178.00 |
| Trakm8 Holdings Plc | Final | GBP | 0.06 | 18.00 |
US
| Full Year Consensus | ||||
| Company Name | Results | Currency | Estimated EPS | Estimated Revenue (Mn) |
| A Schulman Inc | Q3 | USD | 2.47 | 2,474.38 |
| Healthcare Services Group Inc | Q2 | USD | 0.98 | 1,455.07 |
| Helen of Troy Ltd | Q1 | USD | 5.45 | 1,417.28 |
| Ocean Power Technologies Inc | Q4 | USD | – | – |
Note: All Estimates are for Full Year
Key Corporate Announcements Today
AGMs
Connemara Mining Co, Martin Currie Pacific Trust, Marwyn Management Partners.
EGMs
Aberdeen Asset Management
Final Dividend Payment Date
Huntsworth, Scottish Mortgage Inv Trust, Slingsby H.C, Staffline Group, WPP
Interim Dividend Payment Date
Renew Holdings
Trading Announcements
Bovis Homes Group, EasyJet.
Key Corporate Announcements for Tomorrow
AGMs
3i Infrastructure, Ambrian, LGO Energy, Marks & Spencer Group, Northern Investors Co, Northern Investors Co, Summit Germany Limited, Totally, Young & Co’s Brewery ‘A’ Shares, Young & Co’s Brewery (Non-Voting), Establishment Investment Trust, NVM Private Equity Ltd.
EGMs
3i Infrastructure, Establishment Inv Trust, 3i Group, Mattioli Woods.
Final Dividend Payment Date
Management Consulting Group
Interim Dividend Payment Date
Marston’s
Special Dividend Payment Date
Spirit Pub Company
Trading Announcements
Mcbride, Robert Walters, Connect Group, Marks & Spencer Group, Asos.
Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0330GMT today, Brent crude oil one month futures contract is trading 0.93% or $0.56 lower at $59.76 per barrel. On Friday, the contract declined 2.82% or $1.75, to settle at $60.32 per barrel, pressured by the increase in US rigs drilling for oil. Moreover, a possible deal between Iran and the West that could boost oil supply in the world market continued to weigh on the commodity.
Gold
At 0330GMT today, Gold futures contract is trading 0.31% or $3.60 higher at $1167.10 per ounce. On Friday, the contract rose 0.45% to settle at $1168.70 per ounce, reversing its losses from the previous session amid a weak US Dollar.
Currency
At 0330GMT today, the EUR is trading 0.56% lower against the USD at $1.1035, after 61.3% of Greeks voted against further austerity demanded by its creditors, increasing uncertainty and putting Greece’s Eurozone future at risk. On Friday, the EUR strengthened 0.11% versus the USD, to close at $1.1096.
At 0330GMT today, the GBP is trading 0.09% lower against the USD at $1.5559. On Friday, the GBP weakened 0.22% versus the USD, to close at $1.5574. However, losses were capped after UK services PMI rose more than expected in June.
Fixed Income
In the US, bond markets were closed on Friday on account of a national holiday. On Thursday, yield on 10-year notes fell 3 basis points to 2.40%, while yield on 2-year notes lost 5 basis points to 0.64%. Meanwhile, 30-year bond yield fell 1 basis point to 3.19%.
Key Economic News
Greece rejected bailout offer
Greek voters have voted towards rejecting the terms demanded by international creditors for more austerity measures in exchange of bailout of Greece’s bankrupt economy in a critical referendum yesterday.
UK official reserves recorded a rise in June
Official reserves recorded a rise of $1.00 million in the UK, in June. In the prior month, official reserves had dropped $324.00 million.
UK services PMI registered a rise in June
In June, the services PMI advanced to 58.50 in the UK, compared to a reading of 56.50 in the prior month. Markets were expecting the services PMI to rise to 57.50.
Eurozone retail sales advanced more than expected in May
The seasonally adjusted retail sales in the Eurozone recorded a rise of 2.40% on a YoY basis in May, compared to a revised rise of 2.70% in the previous month. Markets were expecting retail sales to climb 2.30%.
Eurozone composite PMI rose in June
In June, the final composite PMI recorded a rise to 54.20 in the Eurozone, higher than market expectations of an advance to 54.10. In the previous month, composite PMI had registered a reading of 53.60. The preliminary figures had recorded a rise to 54.10.
Eurozone retail sales rose more than expected in May
In the Eurozone, the seasonally adjusted retail sales rose 0.20% in May, on a MoM basis, more than market expectations for an advance of 0.10%. In the previous month, retail sales had risen 0.70%.
Eurozone services PMI recorded a rise in June
The final services PMI climbed to 54.40 in the Eurozone, in June, compared to a level of 53.80 in the prior month. The preliminary figures had also indicated a rise to 54.40. Markets were anticipating services PMI to advance to.
German services PMI registered a rise in June
In Germany, the final services PMI advanced to 53.80 in June, compared to a reading of 53.00 in the prior month. Markets were expecting services PMI to advance to a level of 54.20. The preliminary figures had indicated a rise to 54.20.
French services PMI advanced in June
In June, the final services PMI in France advanced to 54.10, compared to a level of 52.80 in the prior month. The preliminary figures had also recorded a rise to 54.10. Markets were anticipating services PMI to rise to a level of 54.10.
Italian services PMI rose surprisingly in June
In June, the services PMI advanced unexpectedly to 53.40 in Italy, compared to a reading of 52.50 in the previous month. Markets were anticipating the services PMI to ease to a level of 52.30.
Spanish services PMI registered a decline in June
The services PMI recorded a drop to 56.10 in June, in Spain, compared to a level of 58.40 in the previous month. Markets were expecting the services PMI to fall to a level of 58.00.
Economic Calendar
| Country | BST | Economic Indicator | Consensus/
*Actuals |
Previous/
**Previous Estimate |
Frequency |
| UK | 9:00 | New Car Registrations (YoY) (Jun) | – | 2.40% | Monthly |
| – | Halifax House Prices (3m/YoY) (Jun) | – | 8.60% | Monthly | |
| – | Halifax House Prices (MoM) (Jun) | – | -0.10% | Monthly | |
| Eurozone | 9:00 | ECB Member Noyer Presents Bank of France Savings Plan | – | – | As scheduled |
| 9:30 | Sentix Investor Confidence (Jul) | 15.00 | 17.10 | Monthly | |
| Germany | 7:00 | Factory Orders n.s.a. (YoY) (May) | 3.80% | 0.40% | Monthly |
| 7:00 | Factory Orders s.a. (MoM) (May) | -0.40% | 1.40% | Monthly | |
| 10:30 | Germany- Manufacturing Order-Total (May) | – | 110.90 | Monthly | |
| 10:30 | Germany- Domestic Orders (May) | – | 103.90 | Monthly | |
| 10:30 | Germany- Foreign Export Orders (May) | – | 116.60 | Monthly | |
| 10:30 | Plant and Machinery Orders (May) | – | 117.90 | Monthly | |
| France | 13:50 | France to Sell Up to EUR4 Bln 91-Day Bills | – | – | As scheduled |
| 13:50 | France to Sell Up to EUR1.4 Bln 140-Day Bills | – | – | As scheduled | |
| 13:50 | France to Sell Up to EUR1.4 Bln 350-Day Bills | – | – | As scheduled | |
| Spain | 8:00 | Industrial Production (May) | – | 94.03 | Monthly |
| 8:00 | Industrial Production (YoY) (May) | – | 4.80% | Monthly | |
| 8:00 | Industrial Output Cal Adjusted (YoY) (May) | 2.80% | 1.80% | Monthly | |
| Switzerland | 8:15 | Consumer Price Index (MoM) (Jun) | -0.10% | 0.20% | Monthly |
| 8:15 | Consumer Price Index (YoY) (Jun) | -1.20% | -1.20% | Monthly | |
| 8:15 | Harmonised Index of Consumer Prices (HICP) (MoM) (Jun) | -0.10% | 0.00% | Monthly | |
| 8:15 | Harmonised Index of Consumer Prices (HICP) (YoY) (Jun) | -1.00% | -0.90% | Monthly | |
| US | 14:45 | Markit Composite PMI (Jun) (F) | – | 54.60** | Monthly |
| 14:45 | Markit Services PMI (Jun) (F) | 54.90 | 54.80** | Monthly | |
| 15:00 | ISM Non-Manufacturing PMI (Jun) | 56.40 | 55.70 | Monthly | |
| Canada | 15:00 | Ivey PMI n.s.a (Jun) | – | 65.20 | Monthly |
| 15:00 | Ivey PMI s.a (Jun) | 55.50 | 62.30 | Monthly | |
| 15:30 | Bank of Canada Business Outlook Survey (Q2) | – | 4.00% | Quarterly | |
| 15:30 | Bank of Canada Senior Loan Officer Survey (Q2) | – | 6.70 | Quarterly | |
| Japan | 6:00 | Coincident Index (May) (P) | 109.10 | 111.00 | Monthly |
| 6:00 | Leading Economic Index (May) (P) | 106.20 | 106.40 | Monthly |
