This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
| UK 100 Leaders | Close | Chg | % Chg | % YTD |
| Kazakhmys PLC | 686.5 | 29 | 4.4 | -25.94 |
| Royal Bank of Scotland Group (The) PLC | 253 | 8.5 | 3.5 | 25.37 |
| Vedanta Resources PLC | 1003 | 27.5 | 2.8 | -1.18 |
| Marks & Spencer Group PLC | 371.1 | 9.9 | 2.7 | 19.32 |
| CRH PLC | 1206 | 28 | 2.4 | -5.78 |
| International Consolidated Airlines Group SA | 149.9 | 3.2 | 2.2 | 1.7 |
| Antofagasta PLC | 1249 | 23 | 1.9 | 2.8 |
| Fresnillo PLC | 1756 | 32 | 1.9 | 15 |
| UK 100 Laggards | Close | Chg | % Chg | % YTD |
| SABMiller PLC | 2700 | -62.5 | -2.3 | 19.13 |
| Glencore International PLC | 370 | -8.05 | -2.1 | -5.61 |
| United Utilities Group PLC | 687 | -14 | -2 | 13.37 |
| Associated British Foods PLC | 1280 | -26 | -2 | 15.63 |
| National Grid PLC | 681 | -11.5 | -1.7 | 8.96 |
| British American Tobacco PLC | 3124.5 | -49 | -1.5 | 2.26 |
| Severn Trent PLC | 1690 | -26 | -1.5 | 12.97 |
| BAE Systems PLC | 327.7 | -4.8 | -1.4 | 14.94 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK 100 | 5793.2 | -1.6 | -0.03 | 3.96 |
| 11841.5 | 33.49 | 0.28 | 17.21 | |
| CAC 40 | 3506.05 | -13 | -0.37 | 10.96 |
| DAX (Xetra) | 7213.7 | -0.8 | -0.01 | 22.3 |
| Dow Jones Industrial Average | 13254.3 | -52.34 | -0.39 | 8.49 |
| Nasdaq Comp. | 3104.02 | -32.4 | -1.03 | 19.15 |
| S&P 500 | 1429.08 | -8.84 | -0.61 | 13.64 |
| Nikkei 225 | 8807.38 | -61.99 | -0.7 | 4.16 |
| Hang Seng | 19794 | -33.17 | -0.17 | 7.37 |
| S&P/ASX 200 | 4325.8 | -7.97 | -0.18 | 6.64 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil Light Sweet Composite | 96.325 | 0.045 | 0.05 | -2.7 |
| Gold Composite | 1731.75 | 1.25 | 0.07 | 10.56 |
| Silver Composite | 33.5025 | -0.0025 | -0.01 | 20.62 |
| Palladium Composite | 669.25 | -1.15 | -0.17 | 1.9 |
| Platinum Composite | 1599.5 | 5.3 | 0.33 | 14.16 |
| GBP/USD – US $ per £ | 1.6006 | – | 0.09 | 3.07 |
| EUR/USD – US$ per Euro | 1.278 | – | 0.14 | -1.34 |
| GBP/EUR – Euros per £ | 1.2524 | – | -0.05 | 4.39 |
Click graph to enlarge
See Live Macro Calendar for all data, incl. consensus expectations
UK 100 called to open -15pts, with caution returning to the fore after the strong gains from mid-last week in the run up to Germany’s constitutional ruling on Europe’s new bailout fund (ESM; European Stability Mechanism) and the Eurozone’s fiscal pact on Wednesday as well as Thursday’s US Federal Reserve (Fed) potential decision on any new stimulus measures.
US markets closed lower, less on macro data (although US Consumer Credit for July did fall versus expectations of another solid rise, suggesting spenders holding back) but more on Spanish PM Rajoy maintaining stubbornness regarding conditionality attached to any request for assistance and an element of profit taking after he recent rally.
Overnight, positive data from China with New Loans data suggesting a much stronger than expected rise in issuance from financial institutions in August. Are existing stimulus measures working? Are we to expect more? This followed a strong improvement in UK House Price declines (not as bad as expected; improved on last month) which could serve to boost consumer confidence.
On the continent, Wholesale Price data from Germany showed a much stronger rise in August – a possible bright spot for the industrial and exporting nation while the Eurozone is struggling with growth.
Elsewhere, ratings agency Moody’s has warned that the UK’s Banks (on which it has negative outlook) could be subject to further downgrades, with profitability to remain under pressure in the uncertain macro environment. No big surprise, with the sector so heavily linked to growth sentiment.
In Commodities Gold has come off its $1740 highs with despite high expectations of Fed stimulus. Priced in already, or further to run upon confirmation? Silver understandably showing similar pattern. In Oil, both Brent Crude and US Light Crude pretty much unchanged, but with upside resistance possibly forming.
In FX, USD remaining around 1.60 vs GBP on stimulus expectations (1-week trend of rising lows). USD still above 1.275 vs EUR on combination of stimulus expectations and European Central Bank (ECB) commitment to sovereign borrowing costs.
In today’s macro line-up, the UK’s Trade Balance will be watched by GBP traders while those trading the USD will watch the stateside equivalent in the afternoon. With the poor jobs data last Friday, watch out for the JOLTS Job Openings for more signs that the full employment element of the Fed’s mandate remains under pressure.
Should you require any other information don’t hesitate to call in to your friendly trader.
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