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Morning Report - 10 September 2014

UK 100 Leaders Close (p) Chg (p) % Chg % YTD
Persimmon PLC 1358 47.0 3.6 23.8
Morrison (Wm) Supermarkets PLC 175.3 5.3 3.1 -39.1
Shire PLC 5240 105.0 2.0 121.1
Meggitt PLC 480.5 9.5 2.0 -9.9
Barratt Developments PLC 367.1 6.3 1.8 21.9
SABMiller PLC 3479 53.5 1.6 11.6
Lloyds Banking Group PLC 73.25 1.1 1.5 -2.4
Wolseley PLC 3294 47.0 1.5 1.3
UK 100 Laggards Close (p) Chg (p) % Chg % YTD
Coca-Cola HBC AG 1395 -34.0 -2.4 -21.4
Associated British Foods PLC 2700 -57.0 -2.1 42.7
SSE PLC 1456 -21.0 -1.4 -5.9
Royal Dutch Shell PLC 2504.5 -36.0 -1.4 17.8
Capita Group (The) PLC 1176 -16.0 -1.3 20.7
British Land Co PLC 719 -9.0 -1.2 26.0
Anglo American PLC 1527 -16.5 -1.1 2.1
BHP Billiton PLC 1872 -19.0 -1.0 -5.2
Major World Indices Mid/Close Chg % Chg % YTD
UK UK 100 6,829.0 -5.8 -0.08 1.2
UK 15,786.9 18.7 0.12 -0.9
FR CAC 40 4,452.4 -22.6 -0.50 3.6
DE DAX 30 9,710.7 -47.3 -0.49 1.7
US DJ Industrial Average 30 17,014.0 -97.5 -0.57 2.6
US Nasdaq Composite 100 4,552.3 -40.0 -0.87 9.0
US S&P 500 1,988.4 -13.1 -0.65 7.6
JP Nikkei 225 15,784.2 35.1 0.22 -3.1
HK Hang Seng Index 48 24,750.4 -440.1 -1.75 6.2
AU S&P/ASX 200 5,572.0 -35.9 -0.64 4.1
Commodities & FX Mid/Close Chg % Chg % YTD
Crude Oil, US Light Sweet ($/barrel) 93.00 0.02 0.02 -5.8
Crude Oil, Brent ($/barrel) 99.71 -0.56 -0.55 -10.0
Gold ($/oz) 1255.60 -1.20 -0.1 4.2
Silver ($/oz) 19.06 0.00 0 -1.9
Platinum ($/oz) 1390.30 -9.70 -0.69 1.2
GBP/USD – US$ per £ 1.612 0.19 -2.6
EUR/USD – US$ per € 1.294 0.39 -5.9
GBP/EUR – € per £ 1.246 -0.20 3.3
UK Index called to open -11pts at 6817

1 Week, 5 Min

Click graph to enlarge

Today's Main Events

  • 12:00     US          MBA Mortgage Applications
  • 14:45     UK          BOE’S Carney, Shafik, Weale & Miles Speak At TSC
  • 15:00     US          Wholesale Inventories

See Live Macro Calendar for full data line-up, incl. consensus expectations

Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

 

The UK 100 Index is called to open down by 12pts at 6818pts as a future for Great Britain, minus Scotland, continues to concern the markets.

The UK 100 Index fell just 6pts by the close of play yesterday with companies linked to Scotland in the red yet again. The likes of Aberdeen Asset Management (ADN.L) and SSE (SSE.L) shed as much as 1.4%, traders opting to drop the stock and revisit once the situation becomes clearer.

Associated British Foods (ABF.L) continued to decline following Monday's disappointing trading update. The stock fell over 5% on Monday and another 2.4% yesterday to finish the day as the worst performer on the index.

On a brighter note, house builder stocks were back in favour. Persimmon (PSN.L) gained the most to close higher by 3.59% after analysts at JP Morgan boosted its target price for the stock to 1650p.

Barratt Developments (BDEV.L) gained 1.75% yesterday as traders picked up shares ahead of today's full year results - JUST IN - Highlights include pre-tax profits up 103% and increased dividend payment.

WM Morrison (MRW.L) continued its recovery closing higher by 3.12% on the, bargain hunters continue to pick up the beleaguered stock. Tesco (TSCO.L) and J Sainsbury (SBRY.L) also finished the day in positive territory.

U.S. stocks fell, with the S&P 500 Index declining the most in a month to close at 1,988, as concerns grew that the Federal Reserve may raise interest rates sooner than anticipated. The Dow Jones dropped 98pts to close just above 17,000pts.

A rally in Apple Inc. (AAPL) shares disappeared. Apple wiped out a rally of as much as 4.8% after unveiling new products including larger-screen iPhones.

Asian markets were broadly lower following on from US peers amid fears that the Fed could raise rates sooner rather than later. The Hang Seng was down 1.6%, however the Nikkei bucked the trend to finish positive helped by a weak yen, the Topix closed at its highest level since 2008. The ASX was down by 0.6% as Australian consumer confidence declined sharply in September.

In commodities, gold remained out of favour despite equity markets falling, trading near three month lows of $1255 as the dollar continues to strengthen. WTI remained unchanged trading near eight month lows of $92.55 a barrel ahead of stockpile data with Brent steady at 16-month lows of $99.55.

In FX, the dollar hit a six year high against the yen as Treasury yields rose and traders continue to increase bets that the Fed would raise rates next year.

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.

 

 

Key Overnight Macro Data: (Source: Reuters/DJ Newswires)

  • JP            PPI                                         Worse
  • JP            Machine Orders                               Worse

 

See Live Macro Calendar for full data line-up, incl. consensus expectations

 

UK Company Headlines: (Source: Reuters/DJ Newswires)

  • BSkyB prices 3.25 bln bond to fund European deal
  • Daisy Group says buyout offer deadline extended to Sept. 22
  • London Stock Exchange sees encouraging IPO pipeline
  • Optimal Payments H1 rev up 34 pct
  • Kingfisher names new CEO as posts flat profit
  • Anglogold Ashanti says to restructure international operations
  • Xcite Energy signs collaboration agreement with Statoil, EnQuest
  • Chocolatier Thorntons' full-year profit soars
  • Barratt sees housing market returning to normal as profit doubles
  • Alliance Pharma sees full-year results in line with expectations
  • PureCircle full-year sales jump 44 pct

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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.

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

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