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Morning Report - 28 November 2014

UK 100 Leaders Close (p) Chg (p) % Chg % YTD
easyJet PLC 1633 88.0 5.7 6.3
International Consolidated Airlines Group SA 457.8 21.0 4.8 14.1
TUI Travel PLC 433.3 15.8 3.8 4.9
ITV PLC 212.9 5.7 2.8 9.7
Intu Properties PLC 357.6 9.2 2.6 27.3
Admiral Group PLC 1248 32.0 2.6 -4.7
Barclays PLC 243.8 5.8 2.4 -10.4
Smith & Nephew PLC 1133 26.0 2.4 31.6
UK 100 Laggards Close (p) Chg (p) % Chg % YTD
Tullow Oil PLC 464.9 -36.1 -7.2 -45.6
Petrofac Ltd 843.5 -56.0 -6.2 -31.1
BG Group PLC 986.7 -62.8 -6.0 -24.0
Weir Group PLC 1960 -98.0 -4.8 -8.1
Royal Dutch Shell PLC 2265.5 -101.0 -4.3 -0.6
Fresnillo PLC 731 -24.0 -3.2 -2.0
Randgold Resources Ltd 4345 -129.0 -2.9 14.6
BP PLC 426.2 -11.7 -2.7 -12.7
Major World Indices Mid/Close Chg % Chg % YTD
UK UK 100 6,723.4 -5.8 -0.09 -0.4
UK 15,889.7 101.3 0.64 -0.3
FR CAC 40 4,382.3 8.9 0.20 2.0
DE DAX 30 9,974.9 59.3 0.60 4.4
US DJ Industrial Average 30 17,827.8 12.8 0.07 7.5
US Nasdaq Composite 100 4,787.3 29.1 0.61 14.6
US S&P 500 2,072.8 5.8 0.28 12.1
JP Nikkei 225 17,459.9 211.4 1.23 7.2
HK Hang Seng Index 48 24,036.7 32.4 0.13 3.1
AU S&P/ASX 200 5,313.0 -87.9 -1.63 -0.7
Commodities & FX Mid/Close Chg % Chg % YTD
Crude Oil, US Light Sweet ($/barrel) 68.04 -0.50 -0.73 -30.6
Crude Oil, Brent ($/barrel) 71.42 -0.05 -0.06 -35.5
Gold ($/oz) 1185.55 -3.25 -0.27 -1.3
Silver ($/oz) 16.14 -0.12 -0.72 -16.3
Platinum ($/oz) 1216.00 -13.00 -1.06 -11.5
GBP/USD – US$ per £ 1.571 -0.09 -5.0
EUR/USD – US$ per € 1.245 -0.08 -9.4
GBP/EUR – € per £ 1.262 0.00 4.7
UK 100 called to open -3pts at 6720

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

Click graph to enlarge

Today's Main Events

  • 10:00     EU          CPI
  • 10:00     EU          Unemployment Rate

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 5pts at 6718 having shed 5pts yesterday following a slump in oil-related stocks.

OPEC (Organisation of the Petroleum Exporting Countries) met yesterday in Vienna and decided not to cut output despite crude oil prices falling 30% since June on sluggish global demand and rising production from the US. The news sent oil prices crashing yesterday, over 7% at one point.

The reaction in oil-related equities was aggressive. Tullow Oil (TLW.L) led stocks lower falling 7.2% by the close of business. Petrofac (PFC.L), BG Group (BG.L), Weir Group (WEIR.L), Royal Dutch Shell (RDSA/B.L) and BP (BP.L) all endured abnormal share price moves, down as much 6%.

Shares in Barclays (BARC.L) approached a six-month high after Goldman Sachs recommended investors buy shares in the bank.

If the news was bad for those who sell oil for a living, it was certainly good for those who buy it! EasyJet (EZJ.L) topped the UK 100 Index adding 5.7%, closely followed by International Consolidated Airlines (IAG.L) and TUI Travel (TT.L), up 4.8% and 3.8% respectively.

US markets posted modest gains. The Dow Jones closed higher by 12pts at 17,827 in a subdued session on thin volume with many participants starting the Thanksgiving holiday early. By aware the US trading hours are shortened today, markets will close at 6pm GMT.

Asian markets enjoyed a positive session. Japanese CPI data led to chatter of further stimulus from the BoJ, this in turn pushed the Yen lower and exporter share prices higher. The Nikkei gained 1.23% to 17,460pts.

In commodities, oil is dominating the headlines, trading at the lowest levels in 4 years. US light crude now trading a $68.50 a barrel, while Brent trades at $72.50 after oil cartel OPEC decided not to reduce production. The price of gold has eased slightly from $1200, currently at $1187 on profit taking ahead of the weekend's Swiss Referendum. Five million Swiss voters are to decide on a proposal that would force the central bank to triple its gold reserves - experts predict a rally in the price of the yellow metal although some believe it'll never happen - watch this space.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.

 

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

  • UK          GFK Consumer Confidence         In-line
  • JP            Vehicle Production                          Decreased
  • JP            Housing Starts                                   Beat

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

 

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

  • Hochschild sets 2015 production target
  • Merlin Entertainments sees ongoing EBITDA in 20-25 pct range
  • Ofgem says Drax pays 28 mln stg over energy saving obligations
  • Arrow Global sees FY results in line with expectations
  • SSE gets Ofgem's 8-year electricity price control scheme
  • Songbird Estates says received no further offers from QIA, Brookfield
  • Quindell denies that a major contract has been lost
  • Spirit Pub says Greene King deal scheme to be published by Dec 24

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