Highlights of the Day

Asian Markets

Asian stock markets are mixed on Friday as the Trump administration’s decision to impose steel and aluminum tariffs on Canada, Mexico and the European Union rekindled fears of a global trade war.

 

U.S. Markets

U.S. stocks finished broadly lower Thursday, with the U.S. decision to impose tariffs on steel and aluminum imports from the European Union, Canada and Mexico sparking promises of retaliation by trade partners and reigniting fears of a global trade war.

Today's News

The United Kingdom will attempt to break the deadlock in the Brexit negotiations with a proposal to give Northern Ireland joint UK and European Union status so that it can trade freely with both.Northern Ireland, which will become the UK’s only land frontier with the European Union after Brexit in March 2019, remains the most difficult issue in talks between Brussels and London, and a threat to peace in the region.

 

Synchronoss Technologies, a global leader and innovator of cloud, messaging, digital and IoT products and platforms, today announced it has completed the acquisition of the honeybee software business from UK-based multinational electrical and telecommunications retailer and services company Dixons Carphone plc. Financial terms of the deal were not disclosed.

 

Rio Tinto said it had completed the sale of its 75% interest in the Winchester South coal development in Australia’s Queensland state to Whitehaven Coal for $200m. The sale price includes $150m in cash and an unconditional cash payment of $50m due in 12 months. The sale of Rio Tinto’s interests in the Kestrel and Hail Creek coal mines and Valeria coal development project are expected to complete during the second half of 2018, the miner said.

 

Toshiba Corp said it had completed the $18bn (£13.5bn) sale of its chip unit to a consortium led by U.S. private equity firm Bain Capital. The completion of the deal, initially aimed for by end-March, had been delayed due to a prolonged review by Chinese antitrust authorities. China approved the deal last month.

 

CRH has begun a shake-up of its business, as it looks to merge European and US divisions and boost profits. The UK100 company – which is targeting a margin improvement of 300 basis points by 2021, barring any major disruptions to the global economy – said it had initiated a strategic review of its European distribution business, which would focus on “improving the margins and returns of the business, as well as exploring other strategic options”.

 

Oil Prices lost more ground on Friday, with the U.S. market set for a second week of decline on pressure from record U.S. production and expectations of OPEC boosting output.

 

Gold Prices were lower, ending with a loss on Thursday to tally a second straight monthly decline, as pressure from the U.S. dollar index’s gains in May outweighed concerns about a global trade spat.

Companies Reporting this week

Monday:
Tuesday:
Wednesday: Telford Homes
Thursday: FirstGroup * Johnson Matthey
Friday:

Early Market Movements

K 100 7,726.9 +48.7 +0.6%
UK 250 20,985.3 +139.1 +0.7%
GER 30 12,668.7 +63.8 +0.5%
FRA 40 5,445.1 +46.7 +0.9%
U.S. 30 24,415.84 -251.94 -1.0%
U.S. 500 2,705.27 -18.74 -0.7%
OIL (Crude) 77.71 +0.15 +0.2%
GOLD 1,298.86 +0.35 +0.0%

UK Risers & Fallers (8:15am)

Barrat Developments 561.6 +16 +2.9%
Anglo American 1838.8 +41.6 +2.3%
First Group 92.85 +3.05 +3.4%
Shire 4047.5 -52.5 -1.3%
Pearson 896.2 -5.4 -0.6%
Dignity 1039 -176 -14.5%

Latest Broker Views

Johnson Matthey Credit Suisse Outperform 3513 4000
Taylor Wimpey JPMorgan Neutral 190.15 220
National Grid Deutsche Bank Hold 833.3 860
Persimmon JPMorgan Overweight 2832 3250

Forthcoming Economic Data

9.30am: U.K. Manufacturing PMI 53.9 53.5
All Day- G7 Meetings
1.30pm: US Average Hourly Earnings m/m 0.1% 0.2%
1.30pm: U.S. Non-Farm Employment Change 164k 189k

 

Sources:

http://www.stockmarketwire.com/article/5993500/Rio-Tinto-completes-Winchester-South-coal-asset-sale-for-200m.html

https://uk.reuters.com/article/uk-britain-nireland-brexit/uk-plans-to-give-northern-ireland-joint-uk-eu-status-the-sun-idUKKCN1IW35H?il=0

https://uk.reuters.com/article/uk-toshiba-chips/toshiba-completes-18-billion-sale-of-chip-unit-to-bain-consortium-idUKKCN1IX3O7

https://uk.reuters.com/article/uk-global-oil/crude-oil-eases-on-record-u-s-production-opec-supply-hopes-idUKKCN1IX397?il=0

https://www.marketwatch.com/story/gold-futures-tip-higher-head-for-monthly-drop-2018-05-31

https://www.forexfactory.com/

https://www.bloomberg.com/markets/commodities

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