This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
| UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Royal Mail Group PLC | 511.5 | 11.5 | 2.3 | 19.0 |
| Mondi PLC | 1395 | 27.0 | 2.0 | 32.9 |
| Intu Properties PLC | 319.8 | 4.7 | 1.5 | -4.3 |
| Reed Elsevier PLC | 1077 | 15.0 | 1.4 | -2.1 |
| Randgold Resources Ltd | 4652 | 60.0 | 1.3 | 6.2 |
| GKN PLC | 362.2 | 4.4 | 1.2 | 5.3 |
| Standard Chartered PLC | 1034 | 11.5 | 1.1 | 7.4 |
| TUI AG | 1194 | 10.0 | 0.8 | 11.6 |
| UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Pearson PLC | 1273 | -31.0 | -2.4 | 7.0 |
| AstraZeneca PLC | 4246 | -87.0 | -2.0 | -6.8 |
| Anglo American PLC | 985.4 | -20.1 | -2.0 | -17.9 |
| CRH PLC | 1795 | -27.0 | -1.5 | 16.3 |
| RSA Insurance Group PLC | 426.8 | -6.4 | -1.5 | -1.9 |
| Kingfisher PLC | 374.5 | -5.3 | -1.4 | 10.0 |
| Rio Tinto PLC | 2781 | -37.5 | -1.3 | -7.3 |
| Admiral Group PLC | 1436 | -19.0 | -1.3 | 8.6 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 6,753.8 | -36.2 | -0.53 | 2.9 |
| UK | 17,839.8 | -38.6 | -0.22 | 10.9 |
| FR CAC 40 | 4,850.2 | -7.4 | -0.15 | 13.5 |
| DE DAX 30 | 11,001.3 | -63.6 | -0.57 | 12.2 |
| US DJ Industrial Average 30 | 17,764.0 | -2.5 | -0.01 | -0.3 |
| US Nasdaq Composite 100 | 5,013.9 | -7.8 | -0.15 | 5.9 |
| US S&P 500 | 2,080.2 | 0.9 | 0.04 | 1.0 |
| JP Nikkei 225 | 20,126.3 | 30.0 | 0.15 | 15.3 |
| HK Hang Seng Index 48 | 27,087.6 | 98.1 | 0.36 | 14.8 |
| AU S&P/ASX 200 | 5,478.7 | 7.4 | 0.14 | 1.3 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, US Light Sweet ($/barrel) | 61.02 | 0.47 | 0.77 | 12.7 |
| Crude Oil, Brent ($/barrel) | 65.56 | 0.99 | 1.53 | 12.2 |
| Gold ($/oz) | 1180.15 | 3.55 | 0.3 | -0.6 |
| Silver ($/oz) | 16.03 | 0.09 | 0.56 | 1.6 |
| Platinum ($/oz) | 1113.95 | 5.35 | 0.48 | -8.3 |
| GBP/USD – US$ per £ | 1.541 | – | 0.15 | -1.2 |
| EUR/USD – US$ per € | 1.129 | – | -0.01 | -6.7 |
| GBP/EUR – € per £ | 1.365 | – | 0.15 | 5.8 |
Click graph to enlarge
UK 100 Index called to open -15pts at 6740, having recovered from overnight low (6725) but now struggling to better 6750 under weight of negative global news-flow and resistance via falling highs from 3 Jun. Testing 200-day MA 6747. Note current sell-off extended to 330pts in 9 days while last 2 rallies took 10 days to deliver 350+ points. Are we any closer to a reversal, or worse to come (6670 April lows)? Watch levels: Bullish 6765, Bearish 6720.
The mildly negative opening call comes after US stocks closed flat yesterday following a tech sell off that continued to cap a recovery. In Asia the PBoC cut its GDP and inflation estimates – to be taken as a bullish sign of additional stimulus to come. The above just about managed to quell Eurozone unease as Greek PM Tsipras heads to Brussels on Thursday for more talks with Merkel and Hollande.
European banks back in the spotlight after S&P and McGraw Hill Financial downgraded several UK and German institutions including Deutsche Bank, Barclays and RBS overnight (Deutsche now at BBB +ve - just two notches above junk status), considering future government support ‘uncertain’ meaning the term ‘too big to fail’ may be losing relevance. Investor sentiment dented as a result to keep European equities under pressure this morning.
US bourses were the subject of a tug of war between gains in energy stocks and a tech sell off that ultimately ended in stalemate with a more or less flat close. Tuesday also saw some good data releases in the world’s #1 economy with small business optimism, wholesale inventories and JOLTS job openings (best since Dec 2000) all beating forecasts.
Asian stocks mixed, swinging between gains and losses after a negative European and breakeven US close as energy names and commodities benefit from continued USD reversal and consumer shares slipped.
Japan’s Nikkei and its exporters hindered by a JPY surge to 2 week highs (bouncing from 13yr lows) thanks to stable PPI deflation readings double whammy of continued USD reversal and comments by BoJ governor Kuroda that “it was hard to see the [already very weak JPY] currency falling further”. Is he calling the JPY or the USD, and by default the Fed’s rate hike timing? Ballsy!
China stocks rebounding thanks to PBOC cuts to 2015 growth and inflation estimates being taken as positive for stimulus and thus equities following weak trade and inflation data this week. Gains are also in spite of MSCI putting on hold the inclusion of China mainland ‘A’ equities in its benchmark indices due to regulatory obstacles. Optimism had been high that a positive decision would lead to big capital inflows.
Australia’s ASX positive, with the miners benefiting from China stimulus hopes and the weaker USD helping commodities push higher. A weaker AUD also helped thanks to RBA governor Stevens saying the currency needs to fall further and open to further policy easing to support sustainable growth. Consumer confidence readings (weekly and monthly) were mixed.
In focus today we have industrial & manufacturing production from several European nations including the UK (@0930). Consensus sees a reduction in all but manufacturing production YoY. Later in the morning we’ll get we’ll get Greek CPI and US mortgage applications. See the live macro-calendar for a full rundown.
Crude prices edged up again yesterday with US Light breaking through $60 again and benchmark Brent hitting $66 this morning as lower US shale output forecasts and reports that Saudi Arabia is upping production in reaction to growing demand supported prices in such a way as to give crude its biggest boost so far this month.
Gold managed to recover back to $1180 thanks to weaker USD but still within a downtrend from mid-May with resistance at $1190. Plenty of global concerns to buoy safe haven demand.
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.
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