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London's house prices - EMEA brief 21 Aug



  • Asian stocks generally up on hopes trade tensions may ease.
  • Hopes of a China - US trade resolution pushed up copper, often seen as a barometer for the economic outlook, dragging behind it miners such as BHP Billiton and Glencore.
  • Venezuela have debased their currency taking off five zeros, along with increase minimum wage by 3000% in and effort to prop up their economy.
  • Yesterday the world trade organisation confirmed that Turkey had lodged a trade dispute against the US.
  • Gold gains as Trumps remarks weigh on the US dollar, whilst oil edges up on tighter US outlook and Iran sanctions.
  • See what's going on with London house prices in the IGTV video featured video below.

2018-08-21 08_10_59-Trading Blog _ IG Community.pngAsian overnight: Another mixed Asian session overnight, with the Japanese Topix and Australian ASX 200 providing the two negative movers in an otherwise positive session. Donald Trump has downplayed expectations for tomorrow's trade talks between the US and China, yet Chinese stocks managed to gain significant ground nonetheless. Trump also hit out at the Fed over their consistent rate hikes since he came to power, sending the dollar lower. US index futures and most Asian equity markets are trading flat to modestly higher this morning, although China's Shanghai Composite has managed to post significant gains this morning (+1.37%). The scheduled news calendar for today is relatively light and Turkish markets are closed, to removing some of the short term catalysts for volatility.

UK, US and Europe: Looking ahead, we have precious few major events of note to look out for. Thus markets will likely to continue to feed off any comments from Donald Trump as we head towards tomorrow's summit.

South Africa:  The US dollar has weakened and with it aided some gains in commodity prices and strength in emerging market currencies such as the rand. BHP Billiton is down 1.87% in Australia after releasing FY18 results, suggestive of a similar move for the local Billiton listing. Tencent Holdings is down 0.3% in Asia, suggestive of a softer start for major holding company Naspers. With this in mind we expect a flat to marginally lower start on the Jse Top40 Index today. 

Economic calendar - key events and forecast (times in BST)

2018-08-21 08_03_23-Forex Economic Calendar.png

Source: Daily FX Economic Calendar

Corporate News, Upgrades and Downgrades

  • Persimmon said first-half pre-tax profit rose 13% to £516.3 million, while average selling prices rose 1% to £215,813 over the year. Current forward sales were 6% higher compared to a year earlier, at £2.1 billion.  
  • BHP Billiton said that full-year net profit fell 37% to $3.7 billion, thanks to impairments of $5.2 billion. Underlying profit was 33% higher at $8.93 billion, while revenue was up 21% to $43.64 billion, helped by higher production and increased prices for copper, coal and oil. The dividend was boosted by 20 cents to 63 cents per share. 
  • Wood Group suffered a net loss of $52 million for the first-half, due to a write-down on its EthosEnergy gas turbine services business. Operating profit before exceptionals however rose 74% to $125 million, while revenue was up 13 overall. The dividend was boosted to 11.3 cents per share, from 11.1 cents. It remains on track to hit full-year expectations. 
  • Polymetal reported a 45% jump in first-half profit, to $175 million, while revenue was up 16% to $789 million. The firm enjoyed higher gold production and selling prices in gold, offsetting lower silver output. The dividend was raised to 17 cents per share, from 14 cents a year earlier. .
  • Imperial Holdings  FY18 results showed that excluding businesses held for sale, total revenue and operating profit for the group increased by 13% and 7% respectively.
  • BHP Billiton FY18 results  showed basic earnings per share to have remained flat from the prior financial year. 
  • Harmony Gold FY18 results headline earnings per share to have declined by 38% (in USc) from the prior year.

Aggreko upgraded to buy at HSBC
H&R upgraded to hold at DZ Bank
Bayer upgraded to buy at Berenberg
Deutsche Wohnen upgraded to buy at HSBC

Atlantia downgraded to hold at Santander
Bodycote downgraded to sell at Panmure Gordon
Medistim downgraded to sell at SpareBank

IGTV featured video

Information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary


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