Today's Closing Update
U.S. Shares opened higher for the first time in days, with investors brushing off much of the geopolitical concern seen on Thursday, and instead focussing on weak inflation data.
European and U.K. Shares struggled across the board with most sectors and major bourses in negative territory.
Dixons Carphone saw its biggest drop in over 12 months after Simon Bowler of Exane BNP Paribas, one of the top-rated analysts following the stock, downgraded his recommendation for the company. The analyst revised his opinion to ‘underperform’ from ‘outperform’, saying changes in the mobile phone market and a broad decline in UK consumer spending posed risks to the company’s future market position. “These market changes are inviting in new competitors,” Bowler noted. “Not only are the networks and manufacturers looking to take a greater proportion of direct business, but new entrants such as BT and Sky are more easily able to participate, and are happy to be aggressive in doing so.”
World oil demand is growing more strongly than previously thought, but revisions to past data for demand from developing economies means the excess oil on the market will clear less quickly than initially expected later in 2017, according to the rich-world’s energy watchdog. In its latest monthly Oil Market Report, the International Energy Agency revised its forecast for oil demand growth in 2017 from 1.4m barrels per day to 1.5m b/d it forecast in July and said that same pace would be maintained throughout 2018.
Exports of British-built vans, trucks and buses increased by more than 11% in the first half of the year, with almost all the vehicles going to the European Union, new figures show. Almost two-thirds of commercial vehicles built in Britain were exported, with 27,800 out of the 43,700 produced sent to more than 45 countries across the world. The Society of Motor Manufacturers and Traders said six of the top 10 markets for British-built commercial vehicles (CV) were within the EU.
The cost of living in the United States increased at a slightly lower-than-expected pace last month as the cost of energy and that of cars and trucks fell. Headline consumer prices in the US advanced by 0.1% month-on-month in July and were up by 1.7% year-on-year, according to the Bureau of Labor Statistics. That was less than the 0.2% on the month (1.8% year-on-year) gains economists had penciled in. At the ‘core’ level, CPI was up by identical magnitudes, in-line with forecasts. Whereas food prices rose by 0.2% in comparison to June, energy prices dipped by a tenth of a percentage point.
New York is likely to be the favoured option for the foreign listing of the state oil giant Saudi Aramco, not London or Hong Kong. The Big Apple was likely to be the favoured option for the Kingdom’s government and Crown Prince Mohammad bin Salman, a senior industry source told Reuters, due to “political considerations” on account of the long-standing relationship between Riyadh and Washington, although financial and commercial factors would also play a role. “All awaits on the final shareholder decision,” the source said.
Oil prices fell after the International Energy Agency said weak OPEC compliance with production cuts was prolonging a rebalancing of the market despite strong demand growth.
Gold prices climbed to two-month highs as investors sought refuge from escalating tensions between North Korea and the United States, while bullion also received support from weak U.S. inflation data.
Market Close
Market |
Index |
Change |
% Change |
UK 100 |
7310.0 |
-80.0 |
-1.1% |
UK 250 |
19,544.8 |
-154.6 |
-0.8% |
GER 30 |
12,014.1 |
-0.2 |
-0.0% |
FRA 40 |
5,060.9 |
-54.3 |
-1.1% |
U.S. 30 |
21,879.63 |
+35.62 |
+0.2% |
U.S. 500 |
2,445.0 |
+6.8 |
+0.3% |
OIL (BRENT) |
51.67 |
-0.23 |
-0.4% |
GOLD |
1,286.76 |
+0.23 |
+0.0% |
UK Risers & Fallers
Company |
Price |
Change |
% Change |
AA Plc |
187.25 |
+5.6 |
+3.1% |
Smurfit Kap |
2224 |
+38 |
+1.7% |
Persimmon |
2501 |
+39 |
+1.6% |
Kaz Mineras |
665 |
-57 |
-7.9% |
Standard Life |
410.8 |
-16 |
-3.7% |
Rio Tinto |
3370 |
-109.5 |
-3.1% |
Reported Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
1:30pm: U.S. CPI m/m |
0.0% |
0.2% |
0.1% |
1:30pm: U.S. Core CPI m/m |
0.1% |
0.2% |
0.1% |
Sources
https://www.digitallook.com/news/international-economic/opec-oil-output-compliance-slipping-iea-warns–2811969.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1502458202064264100.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1502454983024191500.html
http://www.marketwatch.com/story/oil-prices-head-lower-as-global-tensions-continue-unabated-2017-08-11
http://economictimes.indiatimes.com/markets/commodities/news/gold-up-for-fourth-straight-session-on-n-korea-tensions/articleshow/60013788.cms
https://www.reuters.com/article/us-usa-stocks-idUSKBN1AR13J
https://www.bloomberg.com/news/articles/2017-08-11/europe-stocks-head-for-worst-week-in-nine-months-on-geopolitics
https://www.bloomberg.com/news/articles/2017-08-11/double-downgrade-hits-dixons-carphone-as-retailer-s-shares-slide
https://www.digitallook.com/news/new-issues/new-york-favoured-option-for-foreign-listing-of-saudi-aramco–2812220.html