Highlights of the Day
Asian Markets
Asian Shares advanced, led by a rally in the Topix as the yen held losses after the Bank of Japan left monetary policy unchanged. |
U.S. Markets
U.S. Shares closed lower as tech firms weighed and the market digested rate rise news. |
Today's News
For the best part of a decade, Greece has wanted to become a “normal” country, and late it appeared to begin that process, after creditors agreed to disburse €8.5bn (£7.4bn) of bailout funds aimed at putting the debt-stricken nation back on the road to recovery. The money, signed off after months of disagreement between the European Union and International Monetary Fund over how to reduce Athens’ staggering debt pile, will be released in July, once European parliaments ratify the deal.
Tesco trading statement was the highlight for investors, Tesco endured a tough day ahead of its first-quarter trading announcement, falling over 3% amid gloomy UK retail numbers that knocked the head off its recent gains. In the fourth quarter of its last financial year, UK and Irish sales were up 0.6% and international down 0.3%, while in the first quarter last year, UK&I was up 0.3% and international 3%.
Amec Foster Wheeler has been awarded an engineering procurement and construction contract worth A$298m for the Gruyere gold project. The contract was awarded by Gruyere Management Pty Ltd (GRM) – agent and manager for the joint venture between Gold Road Resources Limited and Gruyere Mining Company Pty Ltd, a wholly owned subsidiary of Gold Fields Limited. The Gruyere gold project, located approximately 200 kilometres east of Laverton, in Western Australia, is one of the largest undeveloped gold deposits in Australia.
Rolls-Royce Holdings says it has started 2017 well, with all businesses performing in line with its expectations. “As a result, Group expectations for first half revenue, profit and free cash flow remain unchanged from that provided at the AGM in May.” Looking at the year as a whole, against a backdrop of mixed market conditions, Rolls said it remained focused on the delivery of its engine production ramp up, the continued execution of its transformation programme and growing its free cash flow.
Ken MacKenzie has been elected to succeed Jac Nasser as chairman of BHP Billiton with effect from 1st September following Nasser’s retirement. The appointment follows a formal chairman succession process led by senior independent director, Shriti Vadera. MacKenzie – who has extensive international business experience gained during his 23 years at global packaging company Amcor – joined the BHP board as a non-executive director in September 2016 and is a member of the Sustainability Committee.
Oil prices were not far off six-month lows, held down by an ongoing supply overhang that persists despite an OPEC-led effort to cut production and prop up crude markets.
Gold edged lower on Friday to hit a three-week low and was on track for a second weekly fall, dragged down as upbeat U.S. economic data supported the dollar.
Companies Reporting this week
Day |
Companies |
Today: |
Real Estate Credit Investments * Record |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,441.9 |
+22.5 |
+0.3% |
UK 250 |
19,632.0 |
+78.3 |
+0.4% |
GER 30 |
12,755.1 |
+63.3 |
+0.5% |
FRA 40 |
5,266.1 |
+49.3 |
+0.9% |
U.S. 30 |
21,359.90 |
-14.66 |
-0.1% |
U.S. 500 |
2,432.5 |
-5.5 |
-0.2% |
OIL (BRENT) |
47.05 |
+0.13 |
+0.28% |
GOLD |
1,253.90 |
-0.08 |
-0.01% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
UBM |
729.75 |
+23.25 |
+3.3% |
Tesco |
185.7 |
+5.75 |
+3.2% |
Glencore |
287.35 |
+4.3 |
+1.5% |
CLS Holdings |
203.25 |
-6.05 |
-2.9% |
BT Group |
290.55 |
-2.95 |
-1.0% |
Fresnillo |
1546 |
-12 |
-0.8% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
AstraZeneca |
Deutsche Bank |
Buy |
5,322.00 |
5,700.00 |
BP |
HSBC |
Buy |
464.00 |
565.00 |
Johnson Matthey |
Deutsche Bank |
Buy |
3,051.50 |
3,600.00 |
Wolseley |
Liberum Capital |
Buy |
4,860.00 |
5,300.00 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9:00am: European Final CPI y/y |
1.4% |
1.4% |
– |
12:30pm: U.S. Building Permits |
1.23m |
1.25m |
– |
2:00pm: U.S. Prelim UoM Consumer Sentiment |
97.1 |
97.2 |
– |
12:30pm: U.S. Housing Starts |
1.17m |
1.23m |
– |
Sources:
http://www.businesstimes.com.sg/stocks/asia-shares-gain-as-japan-stocks-rally-after-boj
http://www.proactiveinvestors.co.uk/companies/market_reports/179327/us-stocks-end-lower-amid-global-equity-slump-179327.html
https://www.digitallook.com/news/news-and-announcements/bhp-billiton-appoints-ken-mackenzie-as-chairman–2725486.html
https://www.digitallook.com/news/company-news-preview/friday-preview-loss-of-confidence-in-tesco-ahead-of-q1-update–2724708.html
https://www.digitallook.com/news/press-round-up-short-premium/friday-newspaper-round-up-greece-morrisons-firstgroup–2725466.html
http://www.stockmarketwire.com/article/5568696/Amec-Foster-Wheeler-wins-gold-project-contract.html
http://www.stockmarketwire.com/article/5568697/Rolls-Royce-begins-2017-well-amid-mixed-conditions.html
https://www.reuters.com/article/us-global-oil-idUSKBN19703Z
http://www.reuters.com/article/global-precious-idUSL3N1JD1JH