(MENAFN- ProactiveInvestors - UK) Proactive Investors, 08:19
UK Market Snapshot
UK markets finished mixed yesterday, with the FTSE 100 index rebounding from its prior session loss, bolstered by a jump in mining sector stocks and weakness in the Pound. Anglo American rose 4.6%, after it reported higher output in the third quarter across all divisions, excluding copper. Peers, Glencore and Rio Tinto climbed 3.6% and 4.5%, respectively. National Express Group advanced 3.2%, after it reported upbeat profit for the third quarter. On the contrary, Whitbread declined 3.8%, despite reporting upbeat underlying pre-tax profit for the half year. However, its Costa Coffee shops posted dismal sales for the same period. GKN dropped 2.9%, as it warned about slower growth at its major automotive and aerospace markets amid weak global economy. The FTSE 100 rose 0.4%, to close at 7,017.6, while the FTSE 250 slipped 0.3%, to settle at 17,801.9.
US Market Snapshot
US markets ended lower yesterday, as investor sentiment was dampened after the US consumer confidence dropped to a three-month low level for October. Nielsen Holdings sank 16.9%, following downbeat results for the third quarter amid higher restructuring charges. Under Armour slumped 13.2%, after the athletic gear maker warned about slower sales growth for 2017 and 2018. Whirlpool plummeted 10.8%, as it posted disappointing result for the third quarter and slashed its projected growth for the full year. On the contrary, Lockheed Martin jumped 7.4%, as its revenue for the third quarter surpassed market estimates and it boosted its dividend. Baker Hughes climbed 4.3%, after it reported lower than expected adjusted loss per share for the third quarter. The S & P 500 edged down 0.4%, to settle at 2,143.2. The DJIA shed 0.3%, to settle at 18,169.3, while the NASDAQ slid 0.5%, to close at 5,283.4.
Europe Market Snapshot
Other European markets closed lower yesterday, amid a slump in health care firms and Italian lenders. Unione di Banche Italiane and Banca Popolare dell'Emilia Romagna declined 3.7% and 4.2%, respectively. ams sank 12.8%, after it reported disappointing sales for the third quarter and stated that its fourth quarter performance will be muted. Novartis slid 2.8%, following a decline in its earnings for the third quarter. On the brighter side, UPM-Kymmene surged 10.8%, after it reported higher than expected operating profit for the third quarter. Luxottica Group climbed 4.4%, as it confirmed its guidance for the year 2016 and hinted that its sales growth will accelerate in 2017. The FTSEurofirst 300 index dipped 0.3%, to close at 1,354.6. Among other European markets, the German DAX Xetra 30 marginally eased, to close at 10,757.3, while the French CAC-40 slid 0.3%, to settle at 4,540.8.
Asia Market Snapshot
Markets in Asia are trading weaker this morning, following an overnight sell-off in the US equities. In Japan, oil stocks, Japan Petroleum Exploration and Inpex have eased 0.8% and 1.5%, respectively, on lower crude oil prices. Exporters, Toshiba, Canon and Panasonic have slid 0.4%, 0.5% and 1.0%, respectively, amid strength in the Japanese Yen. On the flip side, Taiheiyo Cement has jumped 8.9%. In Hong Kong, lenders, Bank of East Asia and Industrial and Commercial Bank of China have shed 0.9% and 1.0%, respectively. In South Korea, index majors, POSCO and Samsung Electronics have dropped 0.8% and 1.8%, respectively. The Nikkei 225 index is trading 0.2% lower at 17,331.5. The Hang Seng index is trading 0.9% down at 23,358.3, while the Kospi index is trading 1.3% lower at 2,009.8.
Commodity, Currency and Fixed Income Snapshots
Crude Oil
At 0330GMT today, Brent Crude Oil one month futures contract is trading 1.16% or $0.59 lower at $50.20 per barrel, ahead of the Energy Information Administration's weekly oil inventory data, scheduled to be released later today. Yesterday, the contract declined 1.30% or $0.67, to settle at $50.79 per barrel, after the American Petroleum Institute reported that US crude stockpiles climbed by 4.8 million barrels for the week ended 21 October 2016.
Gold
At 0330GMT today, Gold futures contract is trading 0.20% or $2.50 higher at $1276.10 per ounce. Yesterday, the contract advanced 0.78% or $9.90, to settle at $1273.60 per ounce, reversing its losses from the last session, amid weaker global equity markets.
Currency
At 0330GMT today, the EUR is trading marginally higher against the USD at $1.0889, ahead of the German GfK consumer confidence survey for November, due to release in some time. Yesterday, the EUR rose 0.06% versus the USD, to close at $1.0886, after data showed that the German Ifo current assessment and business climate advanced more than anticipated in October.
At 0330GMT today, the GBP is trading 0.19% lower against the USD at $1.2163, ahead of the UK BBA mortgage approvals for September, due to release in a few hours. Moreover, the US Markit services PMI for October and goods trade balance for September, slated to release later in the day, will be closely assessed by market participants. Yesterday, the GBP weakened 0.40% versus the USD, to close at $1.2186.
Fixed Income
In the US, treasury yields were mixed, with investors digesting weaker than expected data on the US consumer confidence in October. However, the US housing price index advanced in August. Yesterday, yield on 10-year notes remained steady at 1.77%, while yield on 2-year notes rose 2 basis points to 0.86%. Meanwhile, 30-year bond yield fell 2 basis points to 2.50%.
Key Economic News
Mark Carney defended BoE actions
During a testimony at House of Lords, the Bank of England (BoE) Governor, Mark Carney, defended the monetary policy pursued by the central bank in recent years and stated that the BoE's efforts has had a positive impact on Britain's economy that is 'without parallel'.
Mario Draghi stressed commitment to low rates until inflation target is met
The European Central Bank (ECB) President, Mario Draghi, defended the central bank's actions by stating that the ECB's aggressive bond buying programme and ultra-low rates haven't harmed German households. He further reiterated that the ECB would keep its policies in place until it reaches its goal of keeping inflation just below 2.0%.
German Ifo business expectations index surprisingly advanced in October
The Ifo business expectations index in Germany registered an unexpected rise to 106.10 in October, compared to a level of 104.50 in the previous month. Markets were anticipating the Ifo business expectations index to record a flat reading.
German Ifo current assessment index climbed in October
In October, the Ifo current assessment index in Germany advanced to 115.00, compared to a reading of 114.70 in the prior month. Markets were anticipating the Ifo current assessment index to rise to a level of 114.90.
German Ifo business climate index advanced in October
Compared to a reading of 109.50 in the previous month the Ifo business climate index climbed to 110.50 in Germany, in October. Market anticipation was for the Ifo business climate index to rise to 109.60.
French production outlook indicator fell surprisingly in October
In October, the production outlook indicator in France registered an unexpected drop to a level of 2.00, compared to market expectations of a rise to 8.00. The production outlook indicator had registered a revised reading of 6.00 in the previous month.
French business survey overall demand registered a drop in October
Compared to a revised level of 14.00 in the prior month business survey overall demand registered a drop to 4.00 in France, in October.
French industrial business climate index remained unchanged in October
The industrial business climate index remained steady at a level of 101.00 in France, in October, compared to market expectations of a rise to 102.00.
French own-company production outlook remained steady in October
Own-company production outlook remained flat at a level of 9.00 in October, in France, meeting market expectations.
Italian industrial sales recorded a rise in August
In Italy, the non-seasonally adjusted industrial sales registered a rise of 6.80% in August on a YoY basis. In the previous month, industrial sales had fallen by a revised 0.50%.
Italian industrial sales registered a rise in August
In August, on a monthly basis, the seasonally adjusted industrial sales climbed 4.10% in Italy. In the prior month, industrial sales had climbed by a revised 2.30%.
Italian industrial orders advanced in August
On a monthly basis, the seasonally adjusted industrial orders in Italy recorded a rise of 10.20% in August. Industrial orders had recorded a revised drop of 10.40% in the previous month.
Italian industrial orders recorded a rise in August
In Italy, the non-seasonally adjusted industrial orders climbed 15.90% in August on an annual basis. In the prior month, industrial orders had fallen 11.80%.
Spanish PPI recorded a rise in September
The producer price index (PPI) climbed 0.30% on a MoM basis in Spain, in September. The PPI had registered a revised drop of 0.30% in the previous month.
Spanish PPI declined in September
The PPI eased 2.00% on a YoY basis in Spain, in September. In the previous month, the PPI had fallen 3.10%.
US CB consumer confidence index registered a drop in October
In the US, the CB consumer confidence index fell to a level of 98.60 in October, compared to a revised level of 103.50 in the prior month. Markets were anticipating the CB consumer confidence index to fall to a level of 101.50.
US economic optimism index recorded a rise in October
The economic optimism index recorded a rise to 51.30 in the US, in October, compared to market expectations of an advance to 47.50. In the prior month, the economic optimism index had registered a reading of 46.70.
US Redbook index registered a drop in the last week
The seasonally adjusted Redbook index registered a drop of 0.10% in the US on a monthly basis, in the week ended 21 October 2016. In the previous week, the Redbook index had recorded a flat reading.
US S & P/Case-Shiller composite home price index (HPI) of 20 metropolitan areas advanced more than expected in August
The S & P/Case-Shiller composite home price index (HPI) of 20 metropolitan areas registered a rise of 5.13% on a YoY basis in August, in the US, more than market expectations for a rise of 5.00%. In the previous month, the S & P/Case-Shiller composite home price index (HPI) of 20 metropolitan areas had recorded a revised rise of 4.98%.
US S & P/Case-Shiller composite index of 20 metropolitan areas advanced more than expected in August
On a monthly basis, the seasonally adjusted S & P/Case-Shiller composite index of 20 metropolitan areas in the US rose 0.24% in August, higher than market expectations for a rise of 0.10%. In the prior month, the S & P/Case-Shiller composite index of 20 metropolitan areas had risen by a revised 0.02%.
US housing price index rose more than expected in August
On a monthly basis, the housing price index in the US rose 0.70% in August, compared to a rise of 0.50% in the prior month. Markets were expecting the housing price index to climb 0.40%.
US Redbook index registered a rise in the last week
In the US, the Redbook index climbed 0.30% on an annual basis, in the week ended 21 October 2016. The Redbook index had climbed 1.00% in the previous week.
US Richmond Fed manufacturing index registered a rise in October
In the US, the Richmond Fed manufacturing index advanced to -4.00 in October, in line with market expectations. The Richmond Fed manufacturing index had registered a reading of -8.00 in the previous month.
US S & P/Case-Shiller home price index recorded a rise in August
The S & P/Case-Shiller home price index in the US recorded a rise to 191.66 in August, compared to a revised reading of 190.85 in the previous month.
Japanese corporate service price index rose more than expected in September
In September, on a YoY basis, the corporate service price index advanced 0.30% in Japan, compared to a rise of 0.20% in the previous month. Markets were expecting the corporate service price index to rise 0.20%
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