Highlights of the Day
Asian Markets
Major indexes in Asia were mixed trade as investors digested a barrage of economic data releases out of China. |
U.S. Markets
US markets finished at record heights led by technology companies and banks amid a raft of quarterly earnings reports. The U.S. 30 industrial average closed above 23,000 for the first time. |
Today's News
China’s economy grew by 6.8% in the third quarter of the year, the National Bureau of Statistics said Thursday, cooling slightly from the 6.9% growth rate in the first six months of the year. Growth was supported by strong retail sales and exports, however, experts warned that China’s soaring debt posed financial risks and could further slow the economy. The government has been promising to deleverage the economy but has instead used debt to support its construction sector and underperforming state-owned enterprises.
London Stock Exchange Group chief executive Xavier Rolet will step down at the end of December 2018. LSEG said that during his tenure the group had built a clear and successful strategy and a strong management team, resulting in an increase in the market capitalisation from £800m to almost £14bn today. It said the board was now initiating a process to find a successor and would work closely with Rolet to ensure a smooth transition process. Rolet said: ‘I am extremely proud of all we have done together in just under a decade to turn LSEG into a truly global financial market infrastructure group.
BAE Systems is to make a joint bid with Liverpool-based shipbuilder Cammell-Laird to build five new warships for the UK government. Reuters said Cammell-Laird will be the prime contractor to build and assemble the Type 31e vessels. BAE, it said, is to “lend its expertise” to ensure delivery on time and on budget. The contract of £1.25bn, and said it was the first time in three decades that BAE has taken a back-seat role in the construction of a new warship.
Rathbone Brothers reported a jump in assets in the third quarter on Wednesday as inflows grew. In the three months to 30th September, total funds under management rose to £37.5bn from £36.6bn at the end of June. Meanwhile, total net inflows came in at £619m , with £277m of inflows from its investment management division and £342m from its unit trusts. Overall underlying net operating income came in at £70.5m in the third quarter, up 7% from the same period a year ago, while net operating income in the investment management division was 5.6% higher at £62.5m.
SEGRO‘s total contracted headline rent was £36.4 million for the nine months to 30 September, 3% higher than the same period last year. The company contracted £8.8 million of new headline rent during the third quarter, including £3.8 million in rent from existing space. It completed 313,000 sq m of fully let developments which will generate £12 million of headline rent, the largest of which was a 156,000 sq m fulfilment centre for Amazon in Rome.
Nestle SA reported that its total reported nine-month sales decreased by 0.4% to 65.3 billion Swiss francs from 65.5 billion francs, prior year, reduced by net divestments of 2.6% (mainly due to the creation of the Froneri joint venture) and negative foreign exchange effects of 0.4%. Organic growth increased to 2.6%, supported by improved RIG of 1.8%. The Group confirmed its sales guidance for 2017, and now expects organic growth for the full year to be around the level of the nine-month period. The underlying trading operating profit margin for 2017 is set to improve by at least 20 basis points in constant currency, in line with the Group’s expectations.
Oil prices were stable, supported by ongoing OPEC-led supply cuts, tensions in the Middle East and lower U.S. production due to hurricane-enforced closures.
Gold touched the lowest in more than one week, as the dollar stood firm on rising U.S. Treasury yields, with investors focusing on who would replace Janet Yellen as the next chair of the Federal Reserve.
Companies Reporting this week
Day |
Companies |
Today: |
Tristel * Stobart Group Ltd. * Unilever * Travis Perkins |
Tomorrow: |
Oncimmune Holdings * Record |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,522.2 |
-20.7 |
-0.3% |
UK 250 |
20,220.2 |
-39.6 |
-0.2% |
GER 30 |
13,040.4 |
-2.6 |
-0.0% |
FRA 40 |
5,374.7 |
-9.1 |
-0.2% |
U.S. 30 |
23,157.60 |
+160.16 |
+0.7% |
U.S. 500 |
2,561.3 |
+1.9 |
+0.1% |
OIL (BRENT) |
58.19 |
+0.0 |
+0.1% |
GOLD |
1,280.98 |
-0.1 |
-0.0% |
Prices supplied by Saxo Capital Markets UK Limited, part of the Saxo Bank A/S Group of companies
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Travis Perkins |
1519.5 |
+47.5 |
+3.2% |
Ashtead |
1900 |
+26 |
+1.4% |
Pearson |
693 |
+6 |
+0.9% |
IWG |
229.15 |
-89.95 |
-28.2% |
Unilever |
4412 |
-136.5 |
-3.0% |
Intu Properties |
228.95 |
-5.55 |
-2.4% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
BHP Billiton |
HSBC |
Hold |
1398.5 |
1530 |
BP |
JPMorgan |
Overweight |
490 |
540 |
Merlin Entertainments |
Berenberg |
Sell |
368.2 |
320 |
Reckitt Benckiser |
Berenberg |
Buy |
6841 |
8000 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9:30am: U.K. Retail Sales m/m |
1.0% |
-0.1% |
– |
Tentative: U.K. 10-y Bond Auction |
1.16|2.2 |
– |
– |
1:30pm: U.S. Unemployment Claims |
243k |
240k |
– |
Sources:
https://www.cnbc.com/2017/10/18/asia-markets-focus-on-china-economic-data-party-congress-currencies.html
http://abcnews.go.com/Business/wireStory/markets-now-us-stocks-opening-higher-ibm-surges-50559699
https://www.digitallook.com/news/news-and-announcements/rathbone-brothers-funds-under-management-rise-in-third-quarter–2919779.html
http://www.stockmarketwire.com/article/5709911/LSEG-chief-executive-to-step-down.html
http://www.stockmarketwire.com/article/5709963/SEGRO-reports-positive-leasing-momentum.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1508392568029665800.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1508390534379610400.html
http://markets.businessinsider.com/news/stocks/Nestle-9-month-Organic-Sales-Up-2-6-Confirms-2017-Sales-Guidance-1004866365
https://www.reuters.com/article/us-global-oil/oil-markets-stable-on-tighter-u-s-market-expected-extension-of-opec-supply-cuts-idUSKBN1CO02X
https://uk.reuters.com/article/global-precious/precious-gold-hits-over-1-week-low-as-dollar-holds-firm-idUKL4N1MU168