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UK 100 Leaders Close (p) Chg (p) % Chg
Vodafone Group PLC 221 3.5 1.6
Sports Direct International PLC 577 7.5 1.3
Rio Tinto PLC 1979.5 20.5 1.1
Glencore PLC 90.48 0.7 0.8
Hikma Pharmaceuticals PLC 2301 9.0 0.4
UK 100 Laggards Close (p) Chg (p) % Chg
Smiths Group PLC 939.5 -18.0 -1.9
Experian PLC 1201 -21.0 -1.7
Coca-Cola HBC AG 1448 -25.0 -1.7
TUI AG 1211 -18.0 -1.5
National Grid PLC 937.5 -13.5 -1.4
Major World Indices Mid/Close Chg % Chg
UK UK 100 6,242.3 -31.7 -0.51
UK 17,429.8 -89.9 -0.51
FR CAC 40 4,651.5 -25.7 -0.55
DE DAX 30 10,743.0 -117.1 -1.08
US DJ Industrial Average 30 17,425.0 -178.8 -1.02
US Nasdaq Composite 5,007.4 -58.4 -1.15
US S&P 500 2,043.9 -19.4 -0.94
JP Nikkei 225 18,451.0 -582.7 -3.06
HK Hang Seng Index 48 21,329.9 -584.6 -2.67
AU S&P/ASX 200 5,270.5 -25.4 -0.48
Commodities & FX Mid/Close Chg % Chg
Crude Oil, West Texas ($/barrel) 34.83 0.07 1.31
Crude Oil, Brent ($/barrel) 37.75 0.18 0.47
Gold ($/oz) 1068.65 8.15 0.77
Silver ($/oz) 13.93 0.10 0.74
GBP/USD – US$ per £ 1.474 – 0.01
EUR/USD – US$ per € 1.089 – 0.27
GBP/EUR – € per £ 1.353 – -0.25
Click graph to enlarge
UK 100 Index called to open -70pts at 6170 starting the new year very much on the back foot, back below the 6200 level it managed to hold above through the festive period. The overnight sell-off accelerates the downtrend from 29 Dec, sees a breach of rising support from mid-Dec and maintains the downtrend from May. Watch levels: Bullish 6190, Bearish 6160.
The negative opening call comes courtesy of a poor start to the new year in Asia after China Manufacturing PMI contraction worsened, missing expectations for a slight improvement and adding to 2015’s fears of a slowing economy and to calls for more stimulus from Beijing. Copper back to 3-week lows. Geopolitics is also rearing its ugly head again.
After the yuan was fixed at a 4.5yr low by the PBOC (the down-trend is clearly our friend), Chinese equities fell steeply enough (-7%; worst ever start to the year) to trigger circuit-breakers while the price of oil has spiked on concerns about supply disruption as geopolitical tensions in the Middle East rise after OPEC-leader Saudi Arabia cut diplomatic ties with soon-to-return to the oil market Iran with the former executing a prominent Shi’ite Muslim cleric and the latter’s embassy in Tehran being stormed in retribution.
In focus today will be the Eurozone Manufacturing PMIs this morning, especially after the Chinese disappoint and which so much hopes of a Eurozone rebound. UK Consumer Credit and Mortgage approvals will be watched for signs on the UK housing market, notably after Cameron’s calls for the biggest affordable house-building plan in 30 years. German Consumer Price Inflation will be eyed for clues about a rebound in the Eurozone and vindication of Draghi’s decision to hold off from more QE.
In the afternoon, look out for the first US data of the year with ISM Manufacturing seen nudging back towards growth (even if prices paid remain very depressed) while Construction Spending is seen having cooled in November. Having spoken yesterday along with Mester, the Fed’s Williams speaks again late tonight.
Gold has jumped on account of a weaker USD as markets digest the Fed’s hike and plan for a slower than suggested rate-rise schedule while geopolitical tensions in the Middle East are fueling demand for the safehaven. Oil off its best levels since pre-Christmas, but still supported by the weaker USD and fears of supply disruption.
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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.
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