This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
| Yesterday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| GKN PLC | 420 | 87.3 | 26.2 | 31.5 |
| Smiths Group PLC | 1652 | 84.5 | 5.4 | 10.9 |
| Marks & Spencer Group PLC | 309.2 | 8 | 2.7 | -1.8 |
| WPP Group PLC | 1354.5 | 30.5 | 2.3 | 1.0 |
| Johnson Matthey PLC | 3164 | 62 | 2.0 | 2.9 |
| Yesterday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| NMC Health PLC | 3102 | -62 | -2.0 | 7.5 |
| Shire PLC | 3581 | -66.5 | -1.8 | -8.2 |
| British American Tobacco PLC | 4968 | -82 | -1.6 | -1.0 |
| Direct Line Insurance Group PLC | 371 | -5.3 | -1.4 | -2.8 |
| Severn Trent PLC | 2015 | -21 | -1.0 | -6.8 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,778.6 | 15.7 | 0.20 | 1.2 |
| UK | 20,859.3 | 121.4 | 0.59 | 0.6 |
| FR CAC 40 | 5,517.1 | 28.5 | 0.52 | 3.9 |
| DE DAX 30 | 13,245.0 | 42.1 | 0.32 | 2.5 |
| US DJ Industrial Average 30 | 25,803.3 | 228.5 | 0.89 | 4.4 |
| US Nasdaq Composite | 7,261.1 | 49.3 | 0.68 | 5.2 |
| US S&P 500 | 2,786.2 | 18.7 | 0.67 | 4.2 |
| JP Nikkei 225 | 23,714.9 | 61.1 | 0.26 | 4.2 |
| HK Hang Seng Index 50 | 31,578.7 | 166.2 | 0.53 | 5.5 |
| AU S&P/ASX 200 | 6,077.1 | 7.0 | 0.12 | 0.2 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 64.40 | 0.76 | 1.19 | 7.1 |
| Crude Oil, Brent ($/barrel) | 69.86 | 0.72 | 1.04 | 4.8 |
| Gold ($/oz) | 1341.15 | 9.75 | 0.73 | 2.9 |
| Silver ($/oz) | 17.12 | 0.15 | 0.87 | 1.4 |
| GBP/USD – US$ per £ | 1.3748 | – | 0.15 | 1.8 |
| EUR/USD – US$ per € | 1.2216 | – | 0.12 | 1.8 |
| GBP/EUR – € per £ | 1.1254 | – | 0.04 | 0.0 |
Click graph to enlarge
UK 100 Index called to open flat at 7785, tracking back towards rising lows support at 7765 following a bullish test of 7800 overnight that extends the January rising channel. Bulls need a break above 7790 to further extend the channel, bears need a breach of 7760 to foster a breakdown. Watch levels: Bullish 7790, Bearish 7760
Calls for a flat start come despite another Wall St rally into a US long weekend (Martin Luther King holiday today) which Asian bourses latched onto overnight to make for a positive start the week. UK sentiment checked by Carillion being forced into liquidation, with political ramifications as one of the biggest UK contractors, having being given new business even after a run of profits warnings.
A weak USD continues to help Energy via Oil, and thus commodities, more than it is hindering via GBP and EUR strength. This is countering the potential hindrance from FX strength derived from soft Brexit hopes and German coalition talks progress.
In UK corporate news this morning: major UK contractor Carillion enters compulsory liquidation after unsuccessful weekend talks with creditors and UK government about options to reduce debt and bolster balance sheet. Government to fund existing public services contracts..
Ferguson sees 3pt tax rate benefit from US tax reform in 2018, no material one-off charges or credits. Melrose Industries starting shareholder meetings to discuss GKN proposal. William Hill expects FY adjusted operating profit ahead of expectations; strategic review of Australian business.
Acacia Mining Q417 gold production slightly ahead of expectations, although -30% vs Q416. Bodycote expects FY profits at upper end of consensus; expects significant non-cash tax credit from US tax reform. Gem Diamonds recovers 910-carat diamond at Letseng mine.
US equity markets finished the week with another record breaking session buoyed by results from banks JP Morgan and Wells Fargo and Energy names were supported by oil prices continuing to push higher. A weaker USD helped even after supportive macro data, perhaps fueleld by President Trump threatening the Iranian nuclear deal and NAFTA.
Crude Oil benchmarks remain strong, Brent holding above $70, supported by USD weakness and rising belief in both global growth and coordinated supply curbs, getting some investors looking to potential to see $100 again. Gold continues to benefit from USD weakness getting above mid-September resistance of $1335, opening the door to September highs of $1357.
In focus today - a quiet one for macro-economic data on account of the US Martin Luther King Day holiday - will be Eurozone Trade Balance (10am) for November, forecast to show a rise in the surplus, regaining half of the October drop from what was a 6-month high.
The lone speaker of the day is the Bank of England’s newly arrived Tenreyo (6.15pm), delivering her maiden speech as external member of the Monetary Policy Committee, speaking in London about ‘The Fall in Productivity Growth: Causes and Implications’.
For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.
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