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| UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Coca-Cola HBC AG | 1770 | 38.0 | 2.2 | 0.0 |
| London Stock Exchange Group PLC | 2914 | 59.0 | 2.1 | 0.0 |
| Hikma Pharmaceuticals PLC | 1893 | 36.0 | 1.9 | 0.0 |
| TUI AG | 1163 | 21.0 | 1.8 | 0.0 |
| Standard Chartered PLC | 663.6 | 11.8 | 1.8 | 0.0 |
| UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Rolls-Royce Group PLC | 668 | -10.0 | -1.5 | 0.0 |
| BT Group PLC | 366.9 | -4.0 | -1.1 | 0.0 |
| DCC PLC | 6040 | -55.0 | -0.9 | 0.0 |
| United Utilities Group PLC | 901 | -6.5 | -0.7 | 0.0 |
| Severn Trent PLC | 2222 | -15.0 | -0.7 | 0.0 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,142.8 | 22.6 | 0.32 | 0.0 |
| UK | 18,077.3 | 47.8 | 0.27 | 0.0 |
| FR CAC 40 | 4,835.7 | -2.8 | -0.06 | 0.0 |
| DE DAX 30 | 11,445.0 | -6.0 | -0.05 | 0.0 |
| US DJ Industrial Average 30 | 19,762.5 | -57.3 | -0.29 | 0.0 |
| US Nasdaq Composite | 5,383.1 | -49.0 | -0.90 | 0.0 |
| US S&P 500 | 2,238.8 | -10.4 | -0.46 | 0.0 |
| JP Nikkei 225 | 19,114.4 | -30.8 | -0.16 | 0.0 |
| HK Hang Seng Index 50 | 22,149.2 | 148.6 | 0.68 | 0.7 |
| AU S&P/ASX 200 | 5,733.2 | 67.4 | 1.19 | 1.2 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 54.03 | 0.01 | 0.01 | 0.6 |
| Crude Oil, Brent ($/barrel) | 57.15 | 0.39 | 0.69 | 0.9 |
| Gold ($/oz) | 1158.85 | 7.75 | 0.67 | 0.6 |
| Silver ($/oz) | 16.15 | 0.13 | 0.83 | 1.2 |
| GBP/USD – US$ per £ | 1.2302 | -0.0047 | 0.17 | -0.4 |
| EUR/USD – US$ per € | 1.0487 | -0.0032 | 0.28 | -0.3 |
| GBP/EUR – € per £ | 1.1730 | -0.0003 | -0.11 | 0.0 |
Click graph to enlarge
UK 100 Index called to open +20pts at 7165, starting the New Year 2017 on the front foot with an overnight rally and break above yesterday’s fresh all-time highs (intraday and closing). This keeps alive the end-2016 Santa Rally uptrend, although we note the daily RSI is now technically overbought. Bulls will likely remain happy so long as the 7160 overnight breakout level holds up. Bears will want to see rising support at the same level give way to open the door for a retreat. Watch levels: Bullish 7170, Bearish 7155.
Calls for a positive open come after a solid start to the year in Europe yesterday and gains in Asia overnight, although Japan remains closed for an extended New Year holiday. Oil prices holding around recent highs on OPEC production cut hopes is helping sentiment along with positive PMI Manufacturing data from China. An overnight bounce in USD is also delivering reciprocal GBP and EUR weakness that helps the UK Index and DAX.
Australia’s ASX is outperforming thanks to Oil buoyancy and strength among the dual-listed Aussie/UK Miners down under overnight after China Caixin PMI Manufacturing surprised to the upside. The sector is thus one to watch at the European open although note official PMI Manufacturing gave up ground on Sunday. China and Hong Kong are posting gains having shaken off a weak open.
US Markets reopen today following the New Year holiday close, creeping ever closer to the Jan 20 inauguration of Trump and his stimulus policies while the Fed preps us for more hikes.
Crude Oil prices continue their OPEC-inspired rallies after November’s production cut deal, however market sentiment is likely to hinge entirely on the compliance of OPEC and non-OPEC nations as well as the capability of exempt countries (Libya, Nigeria) to increase production. Brent Crude will need to break above 3-week falling highs resistance at $57.75 for the rally to continues, while US Crude needs to break $54.50 to challenge December’s 2016 highs.
Gold survived an overnight test of $1150 resistance turned support, however has since failed to overcome falling highs resistance from before the New Year. A sharp sell-off already this morning could pave the way for a fresh test of $1150, a breakdown of which might see the precious metal back to two and a half week support at $1135.
In focus today will be the provisional December reading of Consumer Price Inflation (CPI) for Germany at 1pm, with forecasts for the YoY figure to move back above 1% for the first time since 2014, whilst this morning the country’s Unemployment Rate is seen unchanged despite a marginal improvement in the rate of Unemployment Change.
Elsewhere, UK Manufacturing PMI for December is seen marginally slowing from 53.4 to 53.3, continuing its slide from September’s two-year high reading. This afternoon’s US data is comprised of December’s final Manufacturing PMI reading, seen unchanged, alongside ISM New York at 2:45pm. Quarter of an hour later ISM Manufacturing and Prices Paid are both seen improving, the former to its highest reading in 12 months, while November’s Construction Spending is also seen unchanged.
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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