UK News
Singapore’s Oversea-Chinese Banking Corp (SI:OCBC) announced the acquisition of Barclays’s wealth and investment management operations in Singapore and Hong Kong for $320M in cash.
Marks & Spencer (LON:MKS) posted a 4Q trading statement: “Overall, group sales were +1.9% for the quarter. Food sales continue to outperform the market Sales +4.0%; LFL +0.0%; grew market share to 4.3% In Clothing and Home, we faced a challenging backdrop characterised by price deflation and a flat market. Sales -1.9%; LFL -2.7%; M&S.com sales +8.2%; We now expect the full year Clothing and Home gross margin to be between +240 to +250bps. All other trading guidance remains unchanged.”
Shire Plc (LON:SHP) said it acknowledged the US Treasury notice published on April 4, 2016, adding: “The combination of Shire and Baxalta (NYSE:BXLT) is based on a strong strategic rationale to create the leading global biotechnology company focused on rare diseases. The Co currently expects to complete its proposed combination by mid-2016 as previously announced.”
Firstgroup (LON:FGP) said: “The Board confirms that overall results for the Group in the fourth quarter have been in line with management’s expectations and there have been no significant developments since the release of our third quarter 2015/16 trading update (announced 28 January 2016).”
Global News
In Asia stocks edged down on Thursday morning as the strength of the yen against the dollar took a toll on exporters and tempered an uptick in risk sentiment from a bounce in oil prices. The Nikkei index edged down 0.3% to 15,675.96 during the morning session. Sony Corp (NYSE:SNE) fell 1.2% whilst Toyota Motor Corp (NYSE:TM) lost 0.9% and Honda Motor Company Ltd (NYSE:HMC) fell 1.4%.
The US dollar was gained against its major counterparts on Wednesday with the exception of the GBP. On the economic data front, MBA mortgage applications rose 2.7% in week ended April 1st compared to a drop of 1.0% in the previous week. In other news, the minutes of the Federal Reserve announcement in March have been released and indicate a moderate expansion in economic activity while labor market indicators will continue to strengthen as long as adjustments are gradually made in monetary policy.
The euro was bullish against its major counterparts with the exception of the AUD, CAD and the JPY. In Europe, Germany industrial production fell 0.5% in February after a 2.3% increase the month before (revised from +3.3%). It was anticipated to drop by 1.8%.
In Commodities crude futures rose on a raft of supportive indicators on Thursday, although some traders warned that physical supply and demand fundamentals did not warrant a strong price recovery at this stage. Brent futures rose above $40 per barrel in early trading. U.S. West Texas Intermediate crude futures were trading at $38.09 per barrel. U.S. crude inventories fell 4.9 million barrels in the week to April 1, compared with analysts’ expectations for an increase of 3.2 million barrels, according to data from the EIA on Wednesday.
In the US, stocks rose on Wednesday bolstered by gains in healthcare stocks after the collapse of the $160 billion merger of Pfizer and Allergan (NYSE:AGN), and by a rise in energy stocks. The S&P 500 had gained 1.05%, to 2,066.66. U.S. drugmaker Pfizer Inc (NYSE:PFE) and Ireland- based Allergan Plc called off their merger after new U.S. Treasury rules aimed at curbing tax-cutting inversion deals. Shares of Pfizer rose 5% and gave the biggest boost to the S&P 500, while Allergan was up 3.5%.
Economic Calendar
FR 08:45: Feb Trade Balance, exp.: -3700M
FR 08:45: Feb Current Account Balance
UK 09:30: Mar Halifax House Prices MoM, exp.: 0.9%
UK 09:30: Mar Halifax House Price 3Mths/Year, exp.: 9.5%
EC 13:30: ECB Account of March Monetary Policy Meeting
US 14:30: Apr 2 Initial Jobless Claims, exp.: 270K
US 14:30: 03/26 Continuing Claims, exp.: 2170K
US 21:00: Feb Consumer Credit, exp.: $14.900B
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