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| Yesterday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Next | 5218 | 154 | 3.0 | 15.3 |
| Ashtead | 2124 | 52 | 2.5 | 6.6 |
| Bunzl | 2059 | 50 | 2.5 | -0.6 |
| BAE Systems | 579.4 | 13.6 | 2.4 | 1.1 |
| 3i | 930.2 | 21.6 | 2.4 | 1.8 |
| Yesterday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Mediclinic International | 611 | -18.2 | -2.9 | -5.9 |
| Reckitt Benckiser | 6727 | -101 | -1.5 | -2.8 |
| Randgold Resources | 7130 | -68 | -0.9 | -3.8 |
| Antofagasta | 941 | -7 | -0.7 | -6.4 |
| WPP | 1292.5 | -9 | -0.7 | -3.6 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,665.5 | 49.7 | 0.65 | -0.3 |
| UK | 20,615.6 | 93.9 | 0.46 | -0.5 |
| FR CAC 40 | 5,529.2 | 47.9 | 0.87 | 4.1 |
| DE DAX 30 | 13,340.2 | 41.8 | 0.31 | 3.3 |
| US DJ Industrial Average 30 | 26,616.8 | 224.0 | 0.85 | 7.7 |
| US Nasdaq Composite | 7,505.8 | 94.6 | 1.28 | 8.7 |
| US S&P 500 | 2,872.9 | 33.6 | 1.18 | 7.5 |
| JP Nikkei 225 | 23,629.3 | -2.5 | -0.01 | 3.8 |
| HK Hang Seng Index 50 | 32,968.3 | -185.8 | -0.56 | 10.2 |
| AU S&P/ASX 200 | 6,075.4 | 25.4 | 0.42 | 0.2 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 66.29 | 0.12 | 0.17 | 10.3 |
| Crude Oil, Brent ($/barrel) | 70.41 | 0.00 | 0 | 5.7 |
| Gold ($/oz) | 1348.06 | -5.55 | -0.41 | 3.5 |
| Silver ($/oz) | 17.42 | -0.11 | -0.63 | 3.2 |
| GBP/USD – US$ per £ | 1.4136 | – | -0.13 | 4.7 |
| EUR/USD – US$ per € | 1.2415 | – | -0.08 | 3.5 |
| GBP/EUR – € per £ | 1.1386 | – | -0.05 | 1.2 |
Click graph to enlarge
UK 100 Index called to open +20pts at 7685, but back from a failed attempt to break back above 7700. This maintains the downtrend since mid-Jan and keeps the index in a falling channel 7600-7700. Bulls need another challenge and break above 7700. Bears want to see a breach of 7660 to extend the downtrend. Watch levels: Bullish 7700, Bearish 7660
Calls for a positive start come after Asian equities (ex-China) took the baton from a sharply higher US finish on Friday. President Trump’s Davos address has, temporarily at least, helped the dollar off its lows, helping both UK Index and Dax futures overnight, although the greenback now off its best levels has seen both indices retreat marginally from overnight highs. Oil remains strong.
UK corporate news this morning: GKN updates on pension deficit. NMC Health completes its acquisition of the outstanding 49% stake in Fakih IVF, paid with new shares. Anglo American sells New Largo thermal coal project. RELX to acquire global risk-based authentication company ThreatMetrix for £580m cash.
John Laing Infrastructure says replacing Carillion as facilities manager on 9 projects will cost an extra £3m. WANdisco secures sales agreement with Bytes Technology. Petra Diamonds says re-assessment of optimal recoveries at Cullinan led to lower FY production guidance and EBITA 10-15% lower.
US equity markets surged to record highs on Friday, with all three major indices notching fresh record closes. The Dow Jones climbed over 200 points as positive share price reactions to earnings releases saw 3M and Intel outperform, while Tech and Healthcare outperformed on the S&P 500 and the Tech-focused Nasdaq outperformed. Note, defence behemoth Lockheed Martin reports Q4 results at 12:25pm while Seagate Technology updates on Q2 at 1pm.
Crude Oil benchmarks continue to trade close to Thursday’s 3-year highs, with US crude outperforming global benchmark Brent. The former is trading within half a dollar of its $66.73 highs, while the latter remains hindered by falling highs resistance as a result of the US dollar trading off its lows, trading almost a dollar from its best level of $71.38.
Gold has fallen back from Friday’s attempted rally back to multi-year highs, however has failed to better Thursday’s $1366 highs as the US dollar receives some respite from 3-year lows. The global reserve currency’s weakness has driven sentiment for the precious metal sentiment over the past few weeks, a theme which looks set to continue ahead of this week’s key events (see below).
In focus today will be December’s US Personal Income and Spending (1.30pm), the former seen holding 0.3% monthly growth while the latter cools from 0.6% to 0.4%. Following Friday’s strong US Personal Consumption growth, today’s associated inflation metrics have potential to impact sentiment towards Fed policy and thus the USD. The Dallas Fed manufacturing Index is forecast to fall back, much like Richmond last week and in contrast to Chicago and Kansas.
Speakers today are dominated by the ECB, with Chief Economist Peter Praet giving a speech at the Council of the European Union (10am), Lautenschläger participates in a conference on “'Basel III': Are We Done Now?” in Frankfurt (10:45am) and Cœuré gives a presentation at the Commission Économie et Financements du MEDEF in Paris (4pm).
No US Federal Reserve speakers are scheduled today as the central bank adheres to its self-imposed pre-policy meeting blackout, however this week does see a number of high-level addresses and meetings.
President Trump, fresh from his Davos trip, will give his first State of the Union address on Tuesday, with the aforementioned Fed policy meeting taking place Wednesday. UK PM May travels to China to strengthen diplomatic ties before the UK’s exit from the EU, laying the groundwork for a potential trade deal, whilst a host of the largest US companies report quarterly results throughout the week.
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