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Market Update - 24/08/2016

Wednesday, August 24, 2016

Disclaimer: This is an informal commentary by one of our Market Analysts. It should not be taken as investment advice and is made available only on that basis.
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US equities closed higher in Tuesday led by materials, which outperformed -Defensives lagged, as Consumer Staples (-48bps) and Utilities (-18bps) were the only two sectors to close lower.
Asia: Hong Kong pulled back, underperforming the rest of the Asia region today. -Japanese shares rose, tracking gains in U.S. shares, with exporters rallying as the yen weakened. Volume was muted (TOPIX +0.72%).
Paddy Power Betfair results good, synergies bought forward and FY guidance all good, implies 2.5% upgrade.
SCA plans to divide into 2 listed companies next year.
South African Rand plunged 3%, currently -2.6% post South Africa's finance minister being summoned by a police investigative team . Is regarding his role setting up a tax surveillance team within the country's revenue service.
BAML says likelihood of UK ending up with a ‘Norway solution’ seems less likely now.-
Pfizer  agreed to buy an antibiotics business from AstraZeneca Plc for $725 million as well as other payouts, seeking to add to its pipeline of treatments intended to fight infections.
VW ends supplier dispute.
FT main headline, banks seek to harness Blockchain technology for settlement system. UBS has joined forces with Deutsche Bank, Santander , Mellon and ICAP to pitch the idea to Central Banks aiming for it’s commercial launch by early 2018.
Ryanair hosting a sell side event in Dublin today and tomorrow.
Glencore saw a reported 66% profit drop in H1 on lower4 raw materials prices.
Melrose placing of rights rump , 97% take up in rights.
WPP good numbers, profit +15%.
Labour leadership candidate Owen Smith says would oppose Brexit trigger withdrawal unless Government lets the public vote on the results of withdrawal negotiations.
Ahead of the Yellen speech at Jackson Hole, the US$ strengthened versus all its developed-market peers as futures traders placed a 28% probability of a U.S. interest-rate increase next month and a 54% chance by December.
Markets lower near open, Europe – 25 BPs, Oil lower -1.5% on conflicting Iranian news.