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Morning Report - 24 December 2014

UK 100 Leaders Close (p) Chg (p) % Chg % YTD
Tullow Oil PLC 419.7 12.7 3.1 -50.9
Weir Group PLC 1912 38.0 2.0 -10.3
Royal Dutch Shell PLC 2266 20.5 0.9 -0.6
Tesco PLC 184.6 3.6 2.0 -44.8
Intertek Group PLC 2388 39.0 1.7 -24.1
Dixons Carphone PLC 463.6 2.7 0.6 71.1
Hargreaves Lansdown PLC 1010 1.0 0.1 -25.4
Admiral Group PLC 1346 7.0 0.5 2.8
UK 100 Laggards Close (p) Chg (p) % Chg % YTD
TUI AG 1089 18.0 1.7 0.0
AstraZeneca PLC 4516.5 -86.5 -1.9 26.4
Fresnillo PLC 725.5 11.5 1.6 -2.7
Sky PLC 902.5 6.5 0.7 6.9
Coca-Cola HBC AG 1256 11.0 0.9 -28.7
Shire PLC 4533 -131.0 -2.8 58.9
SSE PLC 1627 8.0 0.5 18.8
Lloyds Banking Group PLC 76.89 0.3 0.4 -2.5
Major World Indices Mid/Close Chg % Chg % YTD
UK UK 100 6,598.2 21.4 0.33 -2.2
UK 16,094.2 102.7 0.64 1.0
FR CAC 40 4,315.0 60.5 1.42 0.4
DE DAX 30 9,922.1 56.4 0.57 3.9
US DJ Industrial Average 30 18,024.2 64.8 0.36 8.7
US Nasdaq Composite 100 4,765.4 -16.0 -0.33 14.1
US S&P 500 2,082.2 3.6 0.17 12.6
JP Nikkei 225 17,854.2 219.1 1.24 9.6
HK Hang Seng Index 48 23,349.3 15.7 0.07 0.2
AU S&P/ASX 200 5,394.5 13.6 0.25 0.8
Commodities & FX Mid/Close Chg % Chg % YTD
Crude Oil, US Light Sweet ($/barrel) 56.79 0.02 0.04 -42.5
Crude Oil, Brent ($/barrel) 61.35 1.10 1.83 -45.6
Gold ($/oz) 1179.75 1.45 0.12 -2.2
Silver ($/oz) 15.81 0.07 0.46 -19.0
Platinum ($/oz) 1192.40 12.20 1.03 -13.2
GBP/USD – US$ per £ 1.552 0.01 -6.2
EUR/USD – US$ per € 1.218 -0.01 -11.4
GBP/EUR – € per £ 1.275 0.03 5.7
UK 100 called to open +15pts at 6601

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

Click graph to enlarge

Today's Main Events

  • 12:00     US          MBA Mortgage Applications
  • 13:30     US          Initial Jobless Claims
  • 13:30     US          Continuing 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 set to open higher by 15pts at 6,601pts.

The UK flagship index closed 21pts higher yesterday as stocks, beaten up in the previous session, bounced back.

Tullow Oil (TLW.L), Randgold Resources (RRS.L) and Tesco (TSCO.L) were among the top performers, shares up some 2-3% as traders moved in for 'cheaper' stocks.

Shire (SHP.L) was joined by AstraZeneca (AZN.L) at the foot of the table as Express Scripts, the largest manager of prescription drug plans for U.S. employers, said it is taking an increasingly aggressive stance in price negotiations with pharmaceutical companies after winning discounts on medications with a strategy introduced last year. Some big pharma companies warned recently that the need to offer U.S. price discounts on some of their biggest brand-name medicines will hurt 2015 sales. Shares closed lower as much as 3%.

Smith & Nephew (SN.L) closed lower by 2% yesterday but could be set for a bounce back today as U.S. peer Stryker is set to make an offer (at a 30% premium) according to a story covered by Reuters last night.

The headlines belonged to our U.S. counterparts, the Dow Jones Industrial Average pushed through 18,000pts for the first time ever.

GDP data from the U.S. confirmed the world's largest economy grew at the fastest pace in 11 years. Gross domestic product expanded at a 5% annual rate in Q3, smashing the previous government estimate of 3.9% and the median forecast of 4.3%.

Oil traded near the highest price in almost two weeks on the U.S. GDP data, on speculation fuel demand may increase in the world’s biggest consumer. This also boosted the case for higher interest rates which saw gold trade near a three-week low.

Trading in London will end at 12:30 today, giving everyone plenty of time to get home for Christmas. From all at Accendo Markets, we wish you a very Merry Christmas and a Happy New Year.

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)

  • Japan                    Small Business Confidence                          Declined

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

 

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

  • Easyhotel CFO Darren Mee to step down
  • Intu Properties to buy Spanish shopping centre for 451 mln euro

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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.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

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