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| UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| TUI | 1067 | 40.0 | 3.9 | -11.9 |
| Shire | 5095 | 159.0 | 3.2 | 8.5 |
| Burberry | 1301 | 40.0 | 3.2 | 8.9 |
| AstraZeneca | 5095 | 101.0 | 2.0 | 10.4 |
| Provident Financial | 2963 | 53.0 | 1.8 | -12.0 |
| UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Royal Bank of Scotland | 185.6 | -8.6 | -4.4 | -38.5 |
| Barclays | 164.7 | -4.8 | -2.8 | -24.8 |
| Standard Chartered | 607.1 | -17.1 | -2.7 | 7.7 |
| ITV | 193.1 | -5.2 | -2.6 | -30.2 |
| Coca-Cola HBC | 1682 | -45.0 | -2.6 | 16.2 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 6,710.3 | -20.0 | -0.30 | 7.5 |
| UK | 17,852.0 | 99.9 | 0.56 | 2.4 |
| FR CAC 40 | 4,332.5 | -40.8 | -0.93 | -6.6 |
| DE DAX 30 | 10,276.2 | -155.0 | -1.49 | -4.4 |
| US DJ Industrial Average 30 | 18,123.8 | -88.8 | -0.49 | 4.0 |
| US Nasdaq Composite | 5,244.6 | -5.1 | -0.10 | 4.7 |
| US S&P 500 | 2,139.2 | -8.1 | -0.38 | 4.7 |
| JP Nikkei 225 | 16,519.3 | 114.3 | 0.70 | -13.2 |
| HK Hang Seng Index 50 | 23,571.8 | 236.2 | 1.01 | 7.6 |
| AU S&P/ASX 200 | 5,294.8 | -1.9 | -0.04 | 0.0 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 43.78 | 0.47 | 1.07 | 18.1 |
| Crude Oil, Brent ($/barrel) | 46.49 | 0.33 | 0.7 | 23.7 |
| Gold ($/oz) | 1318.85 | 5.65 | 0.43 | 24.4 |
| Silver ($/oz) | 19.20 | 0.36 | 1.92 | 38.9 |
| GBP/USD – US$ per £ | 1.30 | – | 0.33 | -11.5 |
| EUR/USD – US$ per € | 1.12 | – | 0.09 | 2.8 |
| GBP/EUR – € per £ | 1.17 | – | 0.24 | -13.9 |
Click graph to enlarge
UK 100 Index called to open +55pts at 6765 after Friday’s 6700 bounce gained momentum into the US close. This continued overnight as we kicked off the new trading week with a push north to 6760 which has allowed the index to escape from a falling channel and could be a 1-week bullish inverse head & shoulders reversal pattern back to 6860 or better. Both Bulls and Bears will be eyeing 6800 September falling highs. Above this is a clear path to 6860, but it also corresponds with completion of a 3-day bullish flag that could check the current rally. Updated watch levels: Bullish 6785, Bearish 6750.
The positive start to the week - yet another focused on global central bank policy - comes after gains in Asia overnight, albeit still without the full quota of regional bourses. Many may have returned for the first time since Wednesday, however, it is Japan’s turn for a public holiday today. Note tech gremlins made for a rather troubled start to the week down under, resulting in a late open and early close for the ASX that could have a knock-on for dual-listed stocks in London. Note, however, positive China property price data helping buoy sentiment along with an oil price bounce.
After the Swiss National Bank (SNB) and Bank of England (BoE) last week it’s the turn of the Bank of Japan (BoJ) and US Fed this week to spice up markets with their latest updates on monetary policy. Are we any closer to a stateside rate hike? What will Kuroda have to say about his institution’s review of its current stimulus programme? Working or not? Both could have a knock on for sentiment given markets' desire to stay living with accommodative policy for as long as possible.
US indices closed lower on Friday due to heavyweight financials weighing on the rest of the market and will now be focused on Wednesday's Fed monetary policy update for further market movements. A wave of terror-related incidents and reports of Hillary Clinton’s lead in the Presidential race lessening over the weekend could see last week’s downtrend continue.
Oil, having tested September lows of $45.50 and $42 for Brent and US Crude respectively over the weekend, has rebounded as both OPEC and non-OPEC countries are supposedly getting close to agreeing a production freeze deal according to the Venezuelan President. However, markets may react negatively to a warning from the Secretary-General of OPEC that no decision will be made at this month’s unofficial meeting in Algiers, instead preferring to call an extraordinary meeting in late November. Brilliant. As they say, patience is a virtue.
Gold continues to build on Friday’s gains thanks to a USD coming off its highs in the run up to this week’s all important monetary policy meetings in Japan and the US. After testing support at $1310, the commodity most sensitive to interest rate decisions, could see a breakout beyond the falling highs of last week.
In focus today, on what is set to be a quiet start to the new trading week, includes Eurozone Construction Output for July, something that could be viewed as offering an indication of regional confidence post Brexit. The afternoon sees only an update on US NAHB Housing Market Index, a print seen holding firm in September.
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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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