Highlights of the Day
Asian Markets
Equity markets across the Asia-Pacific region were down, with stocks in Japan reversing early gains following fresh threats from North Korea, while China-related stocks declined on a credit-rating downgrade.
U.S. Markets
U.S. stock indices closed lower, with market heavyweight Apple out of favor on concerns about its latest iPhones, while financials rose as investors reacted to rising expectations for a third interest rate hike this year.
Today's News
Kim Jong Un on Friday described Donald Trump as “deranged” and Pyongyang’s foreign minister said North Korea may test a hydrogen bomb in the Pacific as the recalcitrant nation hit back at the US president after the latest attempt to curb its nuclear programme. Trump signed an executive order on Thursday boosting the United States’ ability to sanction foreign banks, individuals and companies that facilitate trade with North Korea. The move “will cut off sources of revenue that fund [North Korea’s] efforts to develop the deadliest weapons known to humankind,” Trump said on the sidelines of the UN General Assembly in New York.
Theresa May will tell European counterparts their shared political legacies depend on agreeing a good Brexit deal as she seeks to break the deadlock in negotiations over the UK’s withdrawal from the European Union. The prime minister will set out her plans for a transitional period from the formal date of Brexit in March 2019, expected to last two years, before moving to a permanent trade deal. May is thought to be considering an offer of paying around EUR20bn over the transition period in order to secure favourable trading arrangements, which would also help address Brussels’ concerns about the potential hole in its current budget caused by the UK’s exit. And she is also reported to be ready to give ground on the issue of citizens’ rights for EU nationals in the UK, enshrining the terms of any deal in a formal treaty.
Rio Tinto said it has committed an additional $2.50bn to its ongoing share buyback programme as it returns the proceeds from its recent sale of Coal & Allied to shareholders. The additional commitment means Rio Tinto has announced share buybacks totalling $4.00bn in 2017 alone, following previous announcements in August and February this year. The $2.50bn committed will be comprised, of $560m of off-market buybacks of shares in Rio Tinto Ltd, with the balance of around $1.90bn being added to the company’s existing on-market buybacks of shares in the PLC firm.
Acacia Mining said its third mine in the country is likely to start generating cash again after positive results from a trial to increase the proportion of sellable gold bars. Having previously intended to end gold/copper concentrate production from the Buzwagi mine in the second quarter of 2018 due to the export ban on this material by the Tanzanian government imposed in March, the positive results of the trial the mine has led the company to decide to solely produce gold doré bars from now until the end of its life in 2020.
BHP Billiton announced the final results of its US tender offers that formed part of a larger, multi-currency bond repurchase programme originally launched in August. The multi-commodity blue-chip has paid $2.90bn in total, spending $1.90bn repurchasing euro and sterling bonds and a further $1.00bn on US bonds. The early repayment has extended BHP’s average debt maturity profile and enhanced its capital structure.
Smiths Group said margins expanded across all units in the year while investment was made in every division to drive future growth. Annual pretax profit rose to £601m from £346m the year before, and the dividend was raised 3% to 43.25p from 42.0p. “The progress delivered in executing our strategy ensures that we’re well positioned for the group to return to growth in the 2018 financial year. As in previous years, we expect group performance to be weighted towards the second half,” said Chief Executive Andy Reynolds Smith.
Oil prices edged higher as the market waited to see whether major oil producers would extend supply cuts beyond March at a meeting in Vienna later in the day.
Gold edged up from a four-week low as the latest twist in tensions between the United States and North Korea prompted investors to seek out the safe-haven asset.
Companies Reporting this week
Day |
Companies |
Today: |
Smiths Group * Saga |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,245.7 |
-18.2 |
-0.3% |
UK 250 |
19,357.2 |
-61.1 |
-0.3% |
GER 30 |
12,575.1 |
-25.0 |
-0.2% |
FRA 40 |
5,276.7 |
+9.4 |
+0.2% |
U.S. 30 |
22,359.23 |
-53.36 |
-0.2% |
U.S. 500 |
2,500.6 |
-7.6 |
-0.3% |
OIL (BRENT) |
56.55 |
+0.12 |
+0.2% |
GOLD |
1,296.53 |
+5.33 |
+0.4% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Acacia Mining |
183.75 |
+5.15 |
+2.9% |
Reckitt Benckiser |
6786 |
+82 |
+1.2% |
Kingfisher |
303.4 |
+3.2 |
+1.1% |
Provident Financial |
744.25 |
-20.25 |
-2.6% |
Smiths Group |
1556 |
-57 |
-3.5% |
BHP Billiton |
1317 |
-27 |
-2% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
BP |
Goldman Sachs |
Neutral |
463.15 |
500 |
Astrazenca |
Bernstein |
Outperform |
4788 |
5780 |
Royal Dutch Shell B |
Goldman Sachs |
Buy |
2213 |
2580 |
John Laing |
HSBC |
Buy |
292.5 |
340 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
Prime Minister Theresa May Speaks |
– |
– |
– |
9:00pm: European Flash Manufacturing PMI |
57.4 |
57.2 |
– |
Sources
http://www.stockmarketwire.com/article/5675532/Smiths-Group-underlying-revenue-broadly-in-line.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1506063296797597500.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1506062401987567700.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1506058495607264000.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1506058071947259300.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1506060375157340300.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1506062823487586200.html
https://www.digitallook.com/news/news-and-announcements/acacia-mining-shifts-buzwagi-mine-to-gold-bars-to-avoid-export-ban–2873265.html
https://www.reuters.com/article/usa-stocks/us-stocks-snapshot-wall-street-ends-lower-apple-out-of-favor-idUSZXN0R482I
http://www.marketwatch.com/story/asian-markets-rattled-by-latest-north-korean-nuclear-threat-2017-09-21
http://www.reuters.com/article/us-global-oil/oil-prices-edge-up-ahead-of-opec-meeting-on-supply-cut-extension-idUSKCN1BX02D
https://uk.reuters.com/article/global-precious/precious-gold-prices-inch-up-amid-north-korea-concerns-idUKL4N1M265M