Morning Briefing: Manufacturing boosts investor sentiment

Morning Briefing: Manufacturing boosts investor sentiment

Morning Briefing: Manufacturing boosts investor sentiment Manufacturing boosts investor sentiment
A raft of global manufacturing sector data has given an early boost to equities in 2017 but investors are only too aware of challenging headwinds in the year ahead.

World stock markets are mixed Wednesday as Asian investors weighed gains for commodity prices and Japanese exporters benefitted from a weaker yen; while Europeans digested new data.

Most Asian indexes closed higher with Hong Kong the exception as plans to tighten regulations on transactions were deemed detrimental to the region’s lucrative gaming industry.

European investors are considering data showing mixed fortunes for services industries with France and Germany gaining but Italy lagging. The overall PMI for services in the Eurozone is higher and inflation data shows strength in consumer prices. UK mortgage approvals stalled.

Wall Street and Toronto are expected to open higher. Canada’s MLI leading indicator and US mortgage applications and FOMC December minutes are due.
 
  Latest 1 month ago 1 year ago
 
North America (previous session)
US Dow Jones 19,881.76 (+0.60 per cent) +3.71 per cent +14.10 per cent
TSX Composite 15,403.03 (+0.76 per cent) +2.33 per cent +19.15 per cent
 
Europe (at 5.00am ET)
UK FTSE 7,175.23 (-0.04 per cent) +6.60 per cent +17.75 per cent
German DAX 11,561.57 (-0.20 per cent) +9.97 per cent +12.43 per cent
 
Asia (at close)
China CSI 300 3,368.31 (+0.78 per cent) -4.55 per cent -2.90 per cent
Japan Nikkei 19,594.16 (+2.51 per cent) +6.34 per cent +2.94 per cent
 
Other Data (at 5.00am ET)
Oil (Brent) Oil (WTI) Gold Can. Dollar
55.87
(+0.72 per cent)
52.75
(+0.80 per cent)
1166.20
(+0.36 per cent)
U$0.7476
 
Aus. Dollar
U$0.7262

 
Canadian IPOs worst in 20 years says PwC
There were few IPOs on the Toronto Stock Exchange in 2016, making it the worst year of the past 20 according to PwC.

Its survey of the Canadian IPO market reveals that there were just 8 across all TSX indexes in the year with the $400 million Aritzia Inc. IPO the largest of the year. The overall total was $464 million for the year.

The previous worst year on record was 2008, at the height of the financial crisis.

The hangover from the European debt crisis, the shock of the Brexit vote in the U.K. and the U.S. presidential election campaign all contributed to the uncertainty that plagued the IPO market in 2016 — not just in Canada but in other developed global markets.

The IPO market always lags the traditional equity market,” explains Dean Braunsteiner, national IPO leader at PwC in Canada. “Markets in Canada and the U.S. have marched higher since the U.S. election. Companies considering an IPO are watching that steady upward trend like everyone else. They won’t want to get left behind.”

Braunsteiner points to the tech sector as one possible starting point for an IPO revival and he is more optimistic about the coming year.

“It’s sometimes darkest before the dawn,” he concluded.