UK, US and Europe: A busy day for the US follows a relatively quiet economic calendar in Europe, with one of the main figures already released in the form of the German industrial production number (2.6% from -1.3%). The focus for most will be the US and Canadian jobs report, with markets set to see whether the headline NFP number will follow the ADP figure lower. With market expectations of a September already elevated, todays jobs figures will add another important piece of that puzzle for traders.
South Africa: South Africa's local equity market is expected to initially follow gains in the US and Asia, although could trade tentatively into the US employment data releases this afternoon. South Africa's gold and foreign exchange reserves for June 2018 were reported to have been recorded at slightly lower levels than in the previous month. The rand has managed to claw back some strength today which is expected to aid gains in local banking and retail counters. BHP Billiton is trading 0.85% higher in Australia this morning suggestive of a positive start for local resource counters. Tencent Holdings is up 0.26% in Asia, suggestive of a marginally positive start for major holding company Naspers, although the stronger rand may temper some of these gains.
Economic calendar - key events and forecast (times in BST)
1.30pm – US non-farm payrolls (June): payrolls expected to fall to 190K from 223K, while the unemployment rate holds at 3.8%. Average hourly earnings forecast to be 0.2% higher MoM, from 0.3%. Markets to watch: US indices, USD crosses
1.30pm – Canada employment data (June): 17,500 jobs expected to have been created, from a 7500 fall in May. Unemployment rate to hold at 5.8%. Market to watch: CAD crosses
3pm – Canada Ivey PMI (June, seasonally-adjusted): forecast to fall to 60.7 from 62.5. Market to watch: CAD crosses
Source: Daily FX Economic Calendar
Corporate News, Upgrades and Downgrades
Glencore, the copper, nickel and iron ore mining specialist, announced it will initiate a $1bn share buy back scheme.
Stobart said that it had started the year ‘satisfactorily’, and has also announced a new five-year lease partnership with Ryanair.
Rolls-Royce has sold its commercial marine business to Norwegian firm Kongsberg for £500 million.
Eurazeo upgraded to buy at HSBC
ITV upgraded to buy at SocGen
Petra Diamonds raised to buy at Panmure Gordon & Co
Shell upgraded to buy at DZ Bank
Daily Mail downgraded to sell at SocGen
Direct Line cut to equal-weight at Barclays
Esure downgraded to underweight at Barclays
Pearson downgraded to hold at SocGen
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