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| Yesterday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Fresnillo | 1674 | 52.0 | 3.2 | 37.1 |
| Randgold Resources | 7700 | 200.0 | 2.7 | 20.0 |
| Anglo American | 1045 | 19.0 | 1.9 | -9.9 |
| Reckitt Benckiser Group | 8108 | 121.0 | 1.5 | 17.8 |
| Experian | 1609 | 23.0 | 1.5 | 2.2 |
| Yesterday’s UK Index Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| ConvaTec Group | 330.4 | -13.6 | -4.0 | 41.3 |
| Burberry Group | 1743 | -67.0 | -3.7 | 16.4 |
| Royal Bank of Scotland Group | 251.7 | -8.0 | -3.1 | 12.1 |
| Merlin Entertainments | 508 | -16.0 | -3.1 | 13.2 |
| Kingfisher | 316.9 | -9.7 | -3.0 | -9.5 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,525.0 | -0.8 | -0.01 | 5.4 |
| UK | 19,654.8 | -213.9 | -1.08 | 8.7 |
| FR CAC 40 | 5,269.2 | -38.7 | -0.73 | 8.4 |
| DE DAX 30 | 12,690.0 | -132.8 | -1.04 | 10.5 |
| US DJ Industrial Average 30 | 21,136.3 | -47.8 | -0.23 | 7.0 |
| US Nasdaq Composite | 6,275.1 | -20.6 | -0.33 | 16.6 |
| US S&P 500 | 2,429.3 | -6.8 | -0.28 | 8.5 |
| JP Nikkei 225 | 20,012.3 | 32.4 | 0.16 | 4.7 |
| HK Hang Seng Index 50 | 25,984.1 | -13.0 | -0.05 | 18.1 |
| AU S&P/ASX 200 | 5,672.7 | 5.2 | 0.09 | 0.1 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 48.06 | 0.81 | 1.7 | 0.7 |
| Crude Oil, Brent ($/barrel) | 50.01 | 0.79 | 1.61 | 0.1 |
| Gold ($/oz) | 1294.25 | -2.05 | -0.16 | 1.0 |
| Silver ($/oz) | 17.66 | -0.03 | -0.16 | 0.7 |
| GBP/USD – US$ per £ | 1.2907 | – | 0.01 | 0.2 |
| EUR/USD – US$ per € | 1.1267 | – | -0.03 | -0.1 |
| GBP/EUR – € per £ | 1.1456 | – | 0.05 | 0.3 |
Click graph to enlarge
UK 100 Index called to open flat at 7525, having traded sideways in a tight 7515-30 range overnight. Whilst nursing falling highs resistance since yesterday’s close, rising support going back to 19 April remains valid, along with support at 7500 support since 25 May. Bulls need a break above 7530 to reignite the uptrend; Bears want rising support at 7515 to be jeopardised. Watch levels: Bullish 7535, Bearish 7515.
A flat opening call comes thanks to Asian bourses ignoring a negative close on Wall St. Sentiment remains cautious ahead of tomorrow's ample event-risk docket (UK election, ECB policy update, Comey testimony), however a takeover of troubled Banco Popular (deemed likely to fail by ECB) by Santander may spice up the European banking sector, after a recent period of calm, notably concerns about Italy’s equally-troubled MPS.
Both Australian and Japanese equities are flat despite gains for Tech and Telcos amid M&A activity, and banks and materials following in-line Aussie GDP that made up for poor exports data yesterday and a strong construction print. Chinese equities outperform helped by technology.
US equity markets continued to fall from record highs overnight as investors looked to hedge against the major event risk posed on Thursday. Rallying Energy names offset Retail weakness to help the Dow Jones outperform other major US bourses, with corresponding stocks on the S&P500 continuing the trend while the tech-focused Nasdaq underperformed.
Crude Oil prices are higher overnight as API reported US inventories fell by 4.6m barrels last week, beating analysts’ expectations, however both Brent and US benchmarks are paring gains in early trading having encountered resistance at $50.25 and $48.50 respectively. Support at $49.80/$47.85 is helping to stem the losses and create tight trading ranges into the European open and today’s Official US Government Inventories data at 3:30pm.
Gold has held close to yesterday’s highs of $1296, maintaining its breakout from 11-month falling highs resistance, but has so far been unable to comprehensively overcome resistance of $1295. The breakout is being underpinned by continued weakness in the US dollar having traded a fresh 8-month low overnight. Increased safe-haven demand ahead of tomorrow’s three key high-risk events - the UK election, ECB policy meeting an ex-FBI Director Comey’s testimony on Capitol Hill.
In focus today is the final push by political parties before tomorrow’s UK general election. Pollsters continue to give Theresa May’s Conservatives the edge over Jeremy Corbyn’s Labour, Opinium (4-6 June) giving the sitting PM a 7-point lead over the opposition yesterday, and this will be the last chance to persuade undecided voters, with security, Brexit and the NHS high on the agenda.
Data-wise, we are limited to UK Halifax House Prices (8:30am) which are expected to move further into contraction in May and the annual pace slowing. Italian Retail Sales (9am) should return to growth in April, lifting the annual figure back to positive territory. US Crude Oil Inventories (3:30pm), will be looking to emulate last night’s API drawdown of 4.6m barrels to spur on oil prices.
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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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