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| UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Compass Group | 1271 | 20.0 | 1.6 | 8.2 |
| Marks & Spencer | 424.2 | 6.2 | 1.5 | -6.2 |
| Randgold Resources | 6170 | 75.0 | 1.2 | 48.9 |
| Taylor Wimpey | 181.8 | 2.2 | 1.2 | -10.5 |
| SSE | 1532 | 18.0 | 1.2 | 0.3 |
| UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Anglo American | 575 | -42.3 | -6.9 | 92.0 |
| Antofagasta | 406.1 | -19.6 | -4.6 | -13.5 |
| Glencore | 131.1 | -5.8 | -4.2 | 44.9 |
| ARM Holdings | 908 | -38.0 | -4.0 | -12.6 |
| Sainsbury (J) | 252.5 | -10.5 | -4.0 | -2.4 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 6,104.2 | -58.3 | -0.95 | -2.2 |
| UK | 16,660.0 | -60.9 | -0.36 | -4.4 |
| FR CAC 40 | 4,293.3 | -23.4 | -0.54 | -7.4 |
| DE DAX 30 | 9,862.1 | -113.2 | -1.13 | -8.2 |
| US DJ Industrial Average 30 | 17,720.5 | 9.5 | 0.05 | 1.7 |
| US Nasdaq Composite | 4,737.3 | -23.4 | -0.49 | -5.4 |
| US S&P 500 | 2,064.1 | -0.4 | -0.02 | 1.0 |
| JP Nikkei 225 | 16,471.2 | -175.2 | -1.05 | -13.5 |
| HK Hang Seng Index 50 | 19,676.1 | -239.4 | -1.20 | -10.2 |
| AU S&P/ASX 200 | 5,319.9 | -39.4 | -0.74 | 0.5 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 46.31 | 0.42 | 0.9 | 24.9 |
| Crude Oil, Brent ($/barrel) | 47.79 | 0.67 | 1.41 | 27.1 |
| Gold ($/oz) | 1274.35 | 6.35 | 0.5 | 20.2 |
| Silver ($/oz) | 17.13 | 0.04 | 0.22 | 23.9 |
| GBP/USD – US$ per £ | 1.44 | – | -0.04 | -2.0 |
| EUR/USD – US$ per € | 1.14 | – | 0 | 4.7 |
| GBP/EUR – € per £ | 1.27 | – | -0.04 | -6.5 |
Click graph to enlarge
UK 100 called to open -10pts at 6095, in the midst of a test of yesterday’s 6091 lows and support. Coupled with falling highs since yesterday’s brief revisit of 6200 we remain under the cloud of falling resistance since late April’s 6430 highs. This could usher us back towards 6050 month lows if risk appetite wanes into the weekend. Any effort to clear 6100 could yet revive bullishness. Watch levels: Bullish 6110, Bearish 6085.
European bourses called to open in the red as a weak Asian session follows a mixed US finish. Sentiment has been dented overnight by another poor US earnings report from a retail name, weakness in Apple shares (June 2014 lows) and Yen strength bruising Nikkei exporters to ensure Japanese bourses underperform.
A USD back pushing recent highs is also hampering commodity prices, notably oil, to hold back Australia’s ASX. Stocks in China outperforming, with the tech focused Shenzhen managing to post gains supported by Apple’s $1bn investment in China’s version of Uber.
Disappointing results from US retailer Nordstrom compounded those from Macy’s and Gap to maintain concerns about the US recovery. Markets there were flat on Thursday as Apple shares weighed most heavily, offsetting a strong performance in the oil sector with crude prices benefitting from continuing supply concerns in Canada, an improved demand outlook in emerging markets (led by India) and a surprise drawdown in US stockpiles.
The US Fed continues to keep sentiment in check with three speakers yesterday warning markets they may be in for a surprise, as the likelihood of imminent rate hikes is higher than is currently being priced in. Mester saw recent inflation data ‘encouraging’, while Rosengren and George warned the kids against betting too much on long-term easy policy.
A stronger USD is likely to put pressure on commodities into the weekend as the Dollar Basket (DX) attempts another breakout from its downwards trend with support around key level 94.0. This could see the Gold price back to 3-week rising support around $1264 if strength continues, though this might be offset by potential risk-offness into the weekend. Gold is currently at $1273.
In focus today, will be Germany’s better than expected GDP this morning, with the Eurozone print expected mid-morning. Thereafter it’s all about US Retail Sales, after a hat-trick of poor results (Gap, Macy’s, Nordstrom) stoked fears about US consumer sentiment and growth.
An improvement to positive for US Producer Price Inflation would also surely revive the Fed rate hike debate, as would gains for US Business Inventories and Uni of Michigan Sentiment. The Baker Hughes Rig count could also shift the price of oil after the European open, before the Fed’s Williams speaks after the US final bell to close the trading week.
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