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| Yesterday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Ocado | 794.4 | 44.4 | 5.9 | 100.1 |
| easyJet | 1207 | 47 | 4.1 | -17.6 |
| Royal Mail | 340 | 12.5 | 3.8 | -24.9 |
| British Land | 606 | 17.4 | 3.0 | -12.4 |
| Sage Group | 576.4 | 16.2 | 2.9 | -27.8 |
| Yesterday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Fresnillo | 746.4 | -56 | -7.0 | -47.8 |
| Wood Group | 587.6 | -37 | -5.9 | -9.6 |
| Anglo American | 1568.8 | -74.4 | -4.5 | 1.3 |
| Evraz | 471.7 | -19.7 | -4.0 | 38.7 |
| Royal Dutch Shell | 2332.5 | -93 | -3.8 | -7.0 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 6,952.9 | -7.5 | -0.11 | -9.6 |
| UK | 18,533.0 | 3.0 | 0.02 | -10.6 |
| FR CAC 40 | 4,947.0 | 8.8 | 0.18 | -6.9 |
| DE DAX 30 | 11,192.7 | 54.2 | 0.49 | -13.4 |
| US DJ Industrial Average 30 | 24,286.0 | -178.8 | -0.73 | -1.8 |
| US Nasdaq Composite | 6,939.0 | -33.3 | -0.48 | 0.5 |
| US S&P 500 | 2,632.6 | -17.4 | -0.66 | -1.5 |
| JP Nikkei 225 | 21,812.0 | 165.5 | 0.76 | -4.2 |
| HK Hang Seng Index 50 | 26,296.3 | 374.7 | 1.45 | -12.1 |
| AU S&P/ASX 200 | 5,671.6 | -44.6 | -0.78 | -6.5 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 51.13 | 0.02 | 0.04 | -14.9 |
| Crude Oil, Brent ($/barrel) | 60.14 | 1.29 | 2.19 | -9.7 |
| Gold ($/oz) | 1224.63 | 1.13 | 0.09 | -6.0 |
| Silver ($/oz) | 14.28 | -0.21 | -1.46 | -15.4 |
| GBP/USD – US$ per £ | 1.2817 | – | -0.04 | -5.1 |
| EUR/USD – US$ per € | 1.1331 | – | -0.06 | -5.5 |
| GBP/EUR – € per £ | 1.1301 | – | -0.07 | 0.4 |
Click graph to enlarge
UK 100 Index called to open +50pts at 7000, yet again trying to regain the ceiling of the November falling channel (7020-7030 zone). Bulls need a break above 7025 2-week falling highs resistance to break out of the channel. Bears require a breach of yesterday’s 6945 overnight lows for a further continuation of the November slide. Watch levels: Bullish 7030, Bearish 6960
Calls for a positive open come after a mixed start to November’s final trading week in Asia. Hong Kong was the rank outperformer on hopes of progress in resolving the US-China trade war during this week’s G20 meeting between Presidents Trump and Xi on Friday in Argentina. The rest of Asia was more mixed, with Australia’s ASX hurting from commodity sector weakness after coal, steel and iron ore futures slid lower in China (Dual-listed Miners BHP and RIO -3.5%).
GBP is holding flat despite positive developments during the weekend’s Brexit summit. PM May received support from fellow European leaders for the EU Withdrawal agreement, but markets now look with concern on potential difficulties in passing the bill through the House of Commons.
Black Friday sales brought in a record $6.22bn for US retailers (+23.6% YoY) according to market research from Adobe Analytics. Keep an eye on UK Index Retail names for potential read-across impact. Oil is rebounding after last week’s sell-off, with Brent Crude international marker once again trading above $60/barrel..
In corporate news today, Rio Tinto to sell a 68.62% stake in Namibian uranium mine Rössing to China National Uranium Corporation for $106.5m ($6.5m initial cash + up to $100m contingent payment based on uranium spot prices).
AstraZeneca received US FDA orphan drug designation (allowing for tax benefits and incentives) for Fesenra treatment of rare EGPA autoimmune disease.
BBA Aviation completed acquisition of Firstmark Corp, a provider of aerospace aftermarket services, after receiving payment and regulatory approval. Greencore completed sale of its US business to Hearthside Food Solutions. Faroe Petroleum received a £607.9m takeover offer from DNO ASA (152p/share implied share price, 20.8% premium to Friday’s closing price).
In focus today (busier with the US back from their Thanksgiving weekend), will be the fallout from yesterday’s EU/UK summit in Brussels, where the 27 EU leaders endorsed the draft Brexit deal. The agreement will now go before the UK House of Commons and the European Parliament for what is likely to be a very contentious approval process.
Data to listen for this morning includes German IFO Surveys (9am), forecast lower for November, followed by UK Mortgage Approvals (9.30am) which could impact UK Index housebuilders. In the afternoon, Chicago Fed Nat Activity Index (1.30pm) could influence US growth sentiment, as could the Dallas Fed (3.30pm), forecast lower in November.
Speakers on the docket today comprise of the ECB’s Praet (9am; "Challenges for the European Monetary Policy 2019"), colleagues Nowotny (12pm) and Coeure (12.30pm; “How to finance cohesion in Europe") and the central bank’s President Draghi (2pm; Introductory statement at ECON Hearing of European Parliament). Be mindful of EUR moves.
To close out the day, Bank of England Governor Carney (6.30pm) and former Fed Chair Alan Greenspan’s discuss the new book ‘Capitalism in America: A History’ - with The Economist’s political editor Adrian Wooldridge.
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Prepared by Michael van Dulken, Head of Research