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| Yesterday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Vodafone | 129.3 | 2.2 | 1.7 | -15.4 |
| Severn Trent | 1965.5 | 12.5 | 0.6 | 8.3 |
| Fresnillo | 742 | 4 | 0.5 | -13.7 |
| British Land | 532.6 | 2.6 | 0.5 | -0.1 |
| National Grid | 815.8 | 3.7 | 0.5 | 6.8 |
| Yesterday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| NMC Health | 2435 | -185 | -7.1 | -11.0 |
| Tesco | 225.8 | -12.4 | -5.2 | 18.8 |
| Hikma Pharmaceuticals | 1650 | -84 | -4.8 | -3.9 |
| Micro Focus | 1893 | -84 | -4.3 | 36.9 |
| Burberry | 1735.5 | -63.5 | -3.5 | 0.0 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,185.3 | -83.6 | -1.2 | 6.8 |
| UK | 18,946.0 | -258.8 | -1.4 | 8.3 |
| FR CAC 40 | 5,222.1 | -90.6 | -1.7 | 10.4 |
| DE DAX 30 | 11,837.8 | -189.3 | -1.6 | 12.1 |
| US DJ Industrial Average 30 | 25,126.5 | -221.3 | -0.9 | 7.7 |
| US Nasdaq Composite | 7,547.3 | -60.0 | -0.8 | 13.8 |
| US S&P 500 | 2,783.0 | -19.4 | -0.7 | 11.0 |
| JP Nikkei 225 | 20,902.7 | -100.7 | -0.5 | 4.4 |
| HK Hang Seng Index 50 | 27,071.9 | -163.8 | -0.6 | 4.7 |
| AU S&P/ASX 200 | 6,385.3 | -54.7 | -0.9 | 13.1 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 59.18 | 1.7 | 2.9 | 30.3 |
| Crude Oil, Brent ($/barrel) | 68.12 | 0.7 | 1.0 | 25.8 |
| Gold ($/oz) | 1277.06 | -3.9 | -0.3 | -0.4 |
| Silver ($/oz) | 14.48 | -0.1 | -0.5 | -6.4 |
| GBP/USD – US$ per £ | 1.2632 | – | 0.0 | -0.9 |
| EUR/USD – US$ per € | 1.1135 | – | 0.0 | -2.9 |
| GBP/EUR – € per £ | 1.1344 | – | 0.0 | 2.0 |
Click graph to enlarge
UK 100 called to open +5pts at 7190, holding yesterday’s 7150 bounce (and above the 200-day moving average) but hindered by 2-week intersecting resistance at 7200. Bulls need a break above 7205 for further upside towards 7315; Bears a breach of 7180 for a retreat towards 7150. Watch levels: Bullish 7205, Bearish 7175
Calls for a tepid open come after another weak session in Asia following a negative close on Wall St as worries over economic growth persist by way of US-China trade dispute and record low bond yields (inverted yield curve) which could be a recessionary signal.
Oil prices still in recovery, Brent close to recovering a $70 handle. Gold back in retreat, despite equity falls, due to USD strength. Copper off its worst levels, although holding around lows. GBP off lows, which could hinder a UK Index breakout.
Imperial Brands: continued to gain market share over recent months; 14bp gain over past 26-weeks. Expects FY US industry volume declines will be maintained around 4.5-5%.
Johnson Matthey FY revenues +5% (+10% ex precious metals), pre-tax profit +53%, final dividend +7%; Expects more modest growth in 2019/20 with investments hurting margins.
FirstGroup FY underlying group revenues +5.7%, underlying adj. Operating profit +10.5%, statutory net loss narrows; Selling Greyhound after investor pressure, North America to become core market.
Inmarsat partners with Airbus to deliver transformation of Global Xpress network; contract for three next generation satellites, first launch 2023; on track to for annual Global Xpress revenue run rate of $500m by end 2020.
Pennon FY underlying revs +6.1%, EBITDA +7.2% (+5.4% adj.), op profit +8.4%, pre-tax +8.3%, net debt +9.9%, final div +6.0%; South West Water confident of outperformance;
Restaurant Group confirms Andy Hornby as CEO from 1 Aug 2019
Equiniti completed technical separation of EQ US division from Wells Fargo.
Greencoat UK Wind raises £375m via equity capital raise to pursue investments and cut debt; recently said would raise £500m over next 12 months.
Ratings agency Fitch affirms Stagecoach at 'BBB'/Negative; Withdraws Ratings
De La Rue profits fall 78%, despite revenues rising 14%, due to exceptional charges from Venezuela sanctions. CEO to step down and leave board. Final div flat.
Daily Mail Gen Trust FY underlying revenues +1% (reported -3%), operating profit +11%
Beware of risk off among Miners late today with China PMI Manufacturing data expected overnight (2am), consensus expecting a return to contraction.
US GDP (1.30pm; Q1, 2nd estimate) is expected to confirm a re-acceleration from 2.2% QoQ, but to 3.1% vs the advance estimate of 3.2%.
A softening in GDP price data (1.30pm), which has inflationary read-across, would back up some expectations for a Fed rate cut.
US Pending Home Sales (3pm) may show a weakening in monthly growth which keeps the annual figure under pressure.
EIA Crude Oil Inventories (4pm) will be watched after last night’s API report showed a build in oil stocks.
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Prepared by Michael van Dulken, Head of Research