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| UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Antofagasta | 715 | 73.5 | 11.5 | 52.4 |
| Prudential | 1531 | 105.5 | 7.4 | 0.0 |
| Glencore | 285 | 14.8 | 5.5 | 215.0 |
| Royal Bank of Scotland | 202.7 | 10.4 | 5.4 | -32.9 |
| Legal & General | 232.8 | 11.1 | 5.0 | -13.1 |
| UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Mediclinic International | 776 | -144.0 | -15.7 | -30.0 |
| Fresnillo | 1576 | -195.0 | -11.0 | 122.6 |
| Randgold | 6385 | -730.0 | -10.3 | 54.1 |
| 3i Group | 604.5 | -51.0 | -7.8 | 25.5 |
| Polymetal International | 880 | -69.0 | -7.3 | 50.6 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 6,828.0 | -83.9 | -1.21 | 9.4 |
| UK | 17,659.5 | 68.5 | 0.39 | 1.3 |
| FR CAC 40 | 4,531.0 | -12.5 | -0.28 | -2.3 |
| DE DAX 30 | 10,630.0 | -15.9 | -0.15 | -1.1 |
| US DJ Industrial Average 30 | 18,808.0 | 218.3 | 1.17 | 7.9 |
| US Nasdaq Composite | 5,208.8 | -42.3 | -0.80 | 4.0 |
| US S&P 500 | 2,167.5 | 4.2 | 0.20 | 6.0 |
| JP Nikkei 225 | 17,374.8 | 30.4 | 0.18 | -8.7 |
| HK Hang Seng Index 50 | 22,507.5 | -331.6 | -1.45 | 2.7 |
| AU S&P/ASX 200 | 5,370.7 | 41.9 | 0.79 | 1.4 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 44.49 | -0.20 | -0.44 | 20.0 |
| Crude Oil, Brent ($/barrel) | 45.70 | -0.16 | -0.34 | 21.6 |
| Gold ($/oz) | 1260.65 | 0.25 | 0.02 | 18.9 |
| Silver ($/oz) | 18.63 | 0.02 | 0.09 | 34.8 |
| GBP/USD – US$ per £ | 1.26 | – | 0.08 | -14.8 |
| EUR/USD – US$ per € | 1.09 | – | 0.19 | 0.4 |
| GBP/EUR – € per £ | 1.15 | – | -0.12 | -15.1 |
Click graph to enlarge
UK 100 Index called to open +5pts at 6835, having traded sideways overnight, 6820-6855. A late bounce from 6800 yesterday, completing a 7000-6800 bearish flag pattern bodes well for Bulls hoping that a ~3% correction will suffice, especially with US markets (ex-Tech) and commodities still rallying. Ardent Bears, however, are eyeing any weakness around 6800 for potential that a bigger bearish flag and 200pt downside could still be on the cards. Watch levels: Bullish 6860, Bearish 6785.
A tepidly positive UK Index open comes after US equities (ex-Tech) closed at fresh record highs and Asian bourses (flat to positive) do their best to maintain a northerly bearing, focusing on the positives of a Trump presidency. However the pace of gains has slowed and a slow start in Europe adds to regional losses yesterday, optimism being gently eroded by fresh uncertainty about whether a huge Trump spending plan and tax cuts can in fact be delivered.
Japan’s Nikkei is flat, buoyed by Yen weakness, derived from dollar strength (higher US inflation expectations. Fed rate hikes) and unwinding of safehaven trades. A rampant commodity sector (Copper still climbing!) is helping Australia’s ASX and Miners outperform, supported by oil prices holding up in spite of concerns about Trump energy policy versus OPEC.
The Dow Jones posted fresh intraday all-time highs yesterday as fears of a Trump dump turned into optimism. Financials and Healthcare continue to perform well on hopes of deregulation in both sectors, whilst the Technology sector took a battering as worries over supply chains (reliant on foreign workers) saw the Nasdaq down 0.8%.
Crude Oil prices fell overnight, however, remain at the bottom end of a mild week long uptrend. The International Energy Agency warned yesterday that global supply growth could continue into 2017 as OPEC members produce 33.8m bpd, well above the proposed upper limit of supply promised in Algiers in September. Can the oil industry’s largest producer group refocus its efforts to cut production at their meeting in Vienna, now less than three weeks away?
Gold is trading sideways this morning however it's on course for its first weekly decline in four weeks as US election uncertainty abates and the US Dollar recovers to near 9 month highs, making the safehaven more expensive. Fears that a Trump presidency could postpone any Fed rate hikes have been obliterated in the aftermath of his surprise victory, putting increased pressure on the monetary policy sensitive metal.
The fallout from Trump’s Election win is yet again likely to dominate markets today as a lack of macro data and a quiet day for speakers closes out what has been an exciting week.
UK Construction Output at 9:30am is seen flat month on month, however the yearly figure is expected to fall into negative territory once again after last month’s first positive reading since May. This afternoon’s US Uni of Michigan Consumer Sentiment is forecast to show a slight increase on last month yet remains a way off the 90+ mark consistently produced over the summer, whilst the Baker Hughes rig count will, as always, close out the week and could move oil prices.
Once more a solitary Fed speaker will be highly anticipated after Trump’s victory on Wednesday, this time Vice Chair Stanley Fischer taking the stand at 2pm. Will he echo colleague Bullard’s remarks yesterday that a rate hike is still on the cards? European speakers provide the warm up with the ECB’s Lane and EU President Juncker both speaking shortly after midday.
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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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