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 |
| Rightmove | 583.8 | 18.8 | 3.3 | 35.1 |
| Standard Life Aberdeen | 272.5 | 7.8 | 2.9 | 6.1 |
| Halma | 1835.5 | 52 | 2.9 | 34.6 |
| Ocado | 1199 | 31.5 | 2.7 | 51.8 |
| Evraz | 593.2 | 13.8 | 2.4 | 23.5 |
| Yesterday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Marks & Spencer | 221.1 | -11 | -4.7 | -6.5 |
| National Grid | 778 | -37.8 | -4.6 | 1.8 |
| Johnson Matthey | 3046 | -138 | -4.3 | 8.8 |
| United Utilities | 784 | -13 | -1.6 | 6.5 |
| NMC Health | 2403 | -32 | -1.3 | -12.2 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,218.2 | 32.9 | 0.5 | 7.3 |
| UK | 19,111.5 | 165.4 | 0.9 | 9.2 |
| FR CAC 40 | 5,248.9 | 26.8 | 0.5 | 11.0 |
| DE DAX 30 | 11,902.0 | 64.3 | 0.5 | 12.7 |
| US DJ Industrial Average 30 | 25,170.0 | 43.5 | 0.2 | 7.9 |
| US Nasdaq Composite | 7,567.7 | 20.4 | 0.3 | 14.1 |
| US S&P 500 | 2,788.9 | 5.8 | 0.2 | 11.3 |
| JP Nikkei 225 | 20,649.3 | -293.2 | -1.4 | 3.2 |
| HK Hang Seng Index 50 | 27,024.5 | -90.4 | -0.3 | 4.6 |
| AU S&P/ASX 200 | 6,388.5 | -3.6 | -0.1 | 13.2 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 56.01 | -2.1 | -3.7 | 23.3 |
| Crude Oil, Brent ($/barrel) | 64.60 | -2.0 | -3.1 | 19.3 |
| Gold ($/oz) | 1292.76 | 5.1 | 0.4 | 0.8 |
| Silver ($/oz) | 14.38 | -0.1 | -0.7 | -7.1 |
| GBP/USD – US$ per £ | 1.2612 | – | 0.1 | -1.1 |
| EUR/USD – US$ per € | 1.1129 | – | 0.0 | -2.9 |
| GBP/EUR – € per £ | 1.1334 | – | 0.1 | 1.9 |
Click graph to enlarge
UK 100 called to open -45pts at 7175 after a sharp pullback from 7230 which negated yesterday’s breakout above 7200. Bulls need a break back above 7200, for another attempt to make headway towards 7315; Bears require a breach of 7170 for a retest of Wednesday’s 7150 lows, if not mid-May lows of 7130. Watch levels: Bullish 7205, Bearish 7170
Calls for a negative open come after a mixed session, countering a positive Wall St close. The risk-off mood stems from Trump imposing yet more tariffs, this time on Mexico (all goods!), rather than China, although its dispute with the latter remains just as newsworthy and market-moving. Safe havens like Gold finding renewed interest.
Disappointing China PMI Manufacturing hasn’t helped sentiment either, contracting more than expected, denting sentiment towards Miners (RIO, BHP) in Australia overnight. Copper understandably weak, extending declines. Worse than expected Nationwide House Price data may also impact UK Index house builders.
Oil prices extend their pullback amid trade concerns, to their lowest since mid-March. This may see higher-beta oil plays like Explorers/Services underperform the Majors whose up and downstream activities offer an element of protection from oil price volatility.
Legal & General to sell General Insurance business to Allianz for £242m with potential further payments over 3 years. Group Solvency Ratio to rise by circa 2%.
Balfour Beatty joint venture (45% share with Flour Corp) secures $1.7bn US contract from Texas Dept of Transport for reconstruction and widening of Interstate 635 LBJ East in 2020-24.
Rank Group confirms it is in advanced discussions with Stride (£89m mkt cap) regarding a possible 151p/share all cash offer (28% premium to yesterday’s closing price).
Wizz Air upgrades profits guidance after FY Revenues +19.6%, Passengers +16.7%, EBITDAR +8.9%, Continuing ops profits +6.9%; Revs per avg. seat KM +2.3%, Ancillary +18%; Costs per avg. seat KM -0.9% (excluding fuel which is +19%); Cash +34%, load +1.5pts, fleet +20.4%.
Capital & Counties notified by TFL of independent valuation by JLL of underlying property interests held by Earls Court Partnership. Implied value of property interests at 31 March -10.5% like-for-like versus 31 Dec which would reduce FY EPRA NAV by approx 2%.
Lookers Q1 New Cars turnover +3%, gross profit +4% (flat like-for-like, beat a negative market); Used car turnover +8%, gross profit +2%; After sales turnover +11%, gross profit +9%, growth in all divisions; performance in-line with expectations since end-March.
Fitch affirms British American Tobacco at 'BBB'; Outlook Stable; “underpinned by strong business (largest industry player, regional & brand diversification, scope to grow next-gen products, exposure to wide range of mature, cash generating and emerging markets. Constrained by financial risk following integration of Reynolds American. Stable Outlook assumes steady deleveraging to 2022”
Digestion of weak China PMI Manufacturing overnight with a bigger than expected drop back into contraction, albeit no worse than the lows of earlier in the year. Also those new Mexico tariffs from Trump
UK Mortgage Lending (9.30am) may impact UK Index Housebuilders after this morning’s worse than expected Nationwide House Price data. Watch GBP too.
This afternoon, US Personal Income & Spending (1.30pm) could deliver mixed messages should it delivers on consensus expectations for a bounce in income, but a big pullback spending. That said., the former may be bouncing off lows while the latter normalises from last month’s jump to a 7yr best.
PCE Inflation could also influence expectations about Fed monetary policy. The Chicago Fed (2.45pm) may improve along with Consumer Confidence (3pm). Watch USD.
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.1
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