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Morning Report - 6 November 2014

UK 100 Leaders Close (p) Chg (p) % Chg % YTD
Marks & Spencer Group PLC 444.1 39.4 9.7 2.7
Meggitt PLC 473.2 33.2 7.6 -10.3
Tullow Oil PLC 489.5 31.6 6.9 -42.8
Morrison (Wm) Supermarkets PLC 162.4 9.1 5.9 -37.8
Associated British Foods PLC 2942 159.0 5.7 20.3
United Utilities Group PLC 865.5 23.5 2.8 28.9
Standard Life PLC 395.9 10.5 2.7 10.1
Aberdeen Asset Management PLC 442 11.5 2.7 -11.6
UK 100 Laggards Close (p) Chg (p) % Chg % YTD
Admiral Group PLC 1296 -40.0 -3.0 -1.1
Kingfisher PLC 285 -8.3 -2.8 -25.9
Fresnillo PLC 684.5 -13.0 -1.9 -8.2
Randgold Resources Ltd 3765 -40.0 -1.1 -0.7
Standard Chartered PLC 936 -9.5 -1.0 -31.2
Babcock International Group PLC 1068 -10.0 -0.9 -10.6
ITV PLC 202.7 -0.2 -0.1 4.5
Whitbread PLC 4341 -2.0 -0.1 15.7
Major World Indices Mid/Close Chg % Chg % YTD
UK UK 100 6,539.1 85.2 1.32 -3.1
UK 15,526.3 132.2 0.86 -2.6
FR CAC 40 4,208.4 78.2 1.89 -2.0
DE DAX 30 9,315.5 149.0 1.63 -2.5
US DJ Industrial Average 30 17,484.5 100.7 0.58 5.5
US Nasdaq Composite 100 4,620.7 -2.9 -0.06 10.6
US S&P 500 2,023.6 11.5 0.57 9.5
JP Nikkei 225 16,792.5 -144.8 -0.86 3.1
HK Hang Seng Index 48 23,704.7 9.1 0.04 1.7
AU S&P/ASX 200 5,506.1 -11.8 -0.21 2.9
Commodities & FX Mid/Close Chg % Chg % YTD
Crude Oil, US Light Sweet ($/barrel) 78.83 -0.04 -0.04 -20.1
Crude Oil, Brent ($/barrel) 83.13 0.43 0.52 -25.0
Gold ($/oz) 1144.25 1.25 0.11 -5.1
Silver ($/oz) 15.36 -0.01 -0.05 -20.9
Platinum ($/oz) 1208.60 -16.80 -1.37 -12.0
GBP/USD – US$ per £ 1.599 0.17 -3.5
EUR/USD – US$ per € 1.252 0.36 -9.2
GBP/EUR – € per £ 1.277 -0.18 6.1
UK 100 called to open -14pts at 6520

UK 100 (UKX): 1-week chart (Source: IT-Finance)

Click graph to enlarge

Today's Main Events

  • 08:30     DE           Construction PMI
  • 09:10     EZ           Retail PMI
  • 09:10     EZ           Retail PMI
  • 09:30     UK          Industrial Production
  • 09:30     UK          Manufacturing Production
  • 12:00     UK          BOE Rate Announcement
  • 12:45     EZ           ECB Main Refinancing Rate
  • 13:30     US          Initial Jobless Claims

See Live Macro Calendar for full data line-up, incl. consensus expectations

 

Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

The UK 100 Index is called to open lower by 16pts after rallying 85pts yesterday to close at 6,539pts.

Corporate earnings updates were responsible for driving stocks to the top of the index. Marks & Spencer (MKS.L) securing top spot with a rally of 9.74% as profits came in ahead of analyst's forecasts.

Meggitt (MGGT.L) tried to keep pace with a gain of 7.55% for the session as the company announced a share buy-back.

Morrisons (MRW.L) enjoyed a buoyant day as speculators bought shares ahead of this morning's trading update. The shares closed higher by 5.94%. This morning's update detailed another quarterly decline in sales, worse than analysts had expected.

Only 8 companies closed lower on the day, Randgold Resources (RRS.L) and Fresnillo (FRES.L) among them, hurting from slumping precious metal prices. Shares closed down between 1-2%.

US markets were broadly higher across the board helped by a rebound in crude oil prices, as rumours of an explosion on a Saudi oil pipeline was not terror related, which saw the Dow hit a new intraday record high. ADP data also came in better than expected ahead of the non-farms data released on Friday. Obama also pledged to work with the new Congress to ensure the next two years would continue to be productive.

Asian markets bucked the trend to finish in the red with the Nikkei the worst performer down 1% as USD/Yen fell from a seven year high. The Hang Seng and ASX were both lower by 0.2% respectively.  The BoJ released minutes that stated members would continue to make adjustments until their inflation target is stable.

In commodities, following crude inventories data yesterday we saw a slight rebound following the recent sell-off with both WTI and Brent higher by almost 2%. Gold was down by another 2% as low as $1137 an ounce, lowest levels since April 2010 with silver down by 5% to $15.40, lowest levels since February 2010.

Key Overnight Macro Data: (Source: Reuters/DJ Newswires)

  • AU          Unemployment Rate                     In-line
  • JP            Leading Index                                    Better

See Live Macro Calendar for full data line-up, incl. consensus expectations

 

UK Company Headlines: (Source: Reuters/DJ Newswires)

  • Dairy Crest to sell its dairies operations for 80 mln stg
  • Schroders pretax profit up 16 per cent to 404 mln stg
  • UK launches probe into competition for banking services
  • Cable & Wireless Comms to buy Columbus Intl for $1.85 bln
  • Cable & Wireless Comms first – half earnings rise 5 pct
  • UK grocer Morrisons' sales fall again
  • DS Smith acquires Spanish corrugated board producer Andopack
  • Halfords posts 10.8 pct rise in first half profit
  • BSkyB to own 88 percent of Sky Deutschland
  • Tate & Lyle posts lower first-half profit, sticks to outlook
  • Waste management firm Shanks first-half profit falls 39 pct
  • Avocet Mining cuts full-year gold production forecast
  • AstraZeneca lifts sales forecast as Nexium keeps on giving
  • Astrazeneca sells Myalept to Aegerion
  • Inmarsat Q3 revenue dips, sees lower costs
  • Experian lifts interim dividend by 7 percent
  • Prezzo receives cash acquisition offer from Papa Bidco
  • Randgold Resources Q3 production rises
  • Hikma raises full-year revenue forecast
  • easyJet says passengers rise 5.5 pct in October
  • RSA insurance premiums fall on soft markets
  • Rightmove says confident of meeting full-year expectations
  • Cobham maintains guidance, to return to growth in 2015

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

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