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| Yesterday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Persimmon PLC | 2761 | 63.0 | 2.3 | 55.5 |
| Burberry Group PLC | 1843 | 40.0 | 2.2 | 23.1 |
| Reckitt Benckiser Group PLC | 7090 | 152.0 | 2.2 | 3.0 |
| Antofagasta PLC | 1002 | 21.0 | 2.1 | 48.4 |
| Royal Bank of Scotland Group PLC | 278 | 5.3 | 2.0 | 23.6 |
| Yesterday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Pearson PLC | 619.5 | -12.0 | -1.9 | -24.3 |
| Sage Group (The) PLC | 719.5 | -12.0 | -1.6 | 9.9 |
| Johnson Matthey PLC | 3329 | -55.0 | -1.6 | 4.6 |
| Smurfit Kappa Group PLC | 2277 | -33.0 | -1.4 | 20.9 |
| ITV PLC | 176.3 | -1.6 | -0.9 | -14.6 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,538.3 | 30.4 | 0.40 | 5.5 |
| UK | 20,146.3 | 43.7 | 0.22 | 11.5 |
| FR CAC 40 | 5,363.7 | -2.2 | -0.04 | 10.3 |
| DE DAX 30 | 12,949.3 | -27.1 | -0.21 | 12.8 |
| US DJ Industrial Average 30 | 22,830.8 | 69.8 | 0.31 | 15.5 |
| US Nasdaq Composite | 6,587.3 | 7.5 | 0.11 | 22.4 |
| US S&P 500 | 2,550.6 | 5.9 | 0.23 | 13.9 |
| JP Nikkei 225 | 20,887.2 | 63.7 | 0.31 | 9.3 |
| HK Hang Seng Index 50 | 28,515.4 | 24.6 | 0.09 | 29.6 |
| AU S&P/ASX 200 | 5,772.1 | 34.0 | 0.59 | 1.9 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 51.16 | 0.34 | 0.66 | -5.1 |
| Crude Oil, Brent ($/barrel) | 56.80 | 0.05 | 0.1 | -0.1 |
| Gold ($/oz) | 1290.15 | -1.95 | -0.15 | 12.0 |
| Silver ($/oz) | 17.14 | -0.04 | -0.25 | 7.4 |
| GBP/USD – US$ per £ | 1.3194 | – | -0.12 | 6.8 |
| EUR/USD – US$ per € | 1.1816 | – | 0.02 | 12.3 |
| GBP/EUR – € per £ | 1.1166 | – | -0.14 | -4.8 |
Click graph to enlarge
UK 100 Index called to open +10pts at 7550, continuing to inch towards record highs of 7600 and extend this week’s bounce from 7480 and yesterday’s break above 7540. Bulls need to get above overnight highs of 7555, and for 7540 to hold as support, while Bears will be looking for a break below the latter. Watch levels: Bullish 7555, Bearish 7540.
Calls for a positive open come after US indices resumed their uptrend to deliver more record highs ahead of earnings season and Asia picked the bullish baton overnight. Australia’s ASX outperforms thanks to utilities, tech and consumer discretionary, although we note weakness among metals prices. The oil price rebound is helping sentiment ahead of the monthly OPEC report.
Japan’s Nikkei continues to close in on its June 2015 record, although it has underperformed overnight on account of USD weakness resulting in Yen strength, something echoed by Gold, and sharp drops (Kobe steel, Sanrio). As stated over the last few days beware USD weakness representing a hindrance for the UK UK Index by way of reciprocal GBP strength.
UK Index headlines this morning: Hargreaves Lansdown Q1 benefited from significant transfer activity, sees improved market sentiment. Mondi expects strong final quarter, higher selling prices. Wood Group wins multi-million dollar contract with Total. Telford Homes says pre-tax profit for H1 2018 expected to be significantly lower than H2 2018 and lower than last year. Watch the housebuilders after yesterday's gains.
Dunelm Q1 revenues +24.8%, like-for-like +9.3%. Polymetal reports significant increase in Ore Reserves at Komar gold deposit in Kazakhstan. Countryside Properties completions +28%, net reservation ratio rate up to 0.84, open sales outlets +9%, private forward order book +8% but average selling price -8% (underlying sales price growth +5%).
Oil prices are holding their rebound above $51 and $56 ahead of the monthly OPEC report and helped by persistent USD weakness. Gold is back below $1290 after US stocks resumed their uptrend, sapping safe haven demand.
In focus today - another quite one for macro data - will be September's Fed FOMC Meeting minutes (7pm) which may give traders a clearer view on the tone of US monetary policy debate and update expectations for the trajectory of policy normalisation.
After Catalan President Puigdemont stopped short of declaring independence yesterday, what Spanish PM Rajoy has to say this afternoon will be interesting. After Oil's rebound, the latest OPEC monthly report will be closely watched.
In terms of data, US Mortgage Applications (12pm) and US JOLTS Openings (3pm) are all we have.
The Fed’s Evans (voter, dovish, 12.15pm) speaks about current economic conditions and monetary policy in Zurich, with audience and media Q&A. Colleague Williams (voter, neutral, 7.40pm) deliver a speech on community leaders in Salt Lake City, also with audience Q&A. ECB Chief Economist Praet (7.50pm) speaks at the SUERF European Money and Finance Forum in New York.
Note the UK Index index goes ex-div for 7pts at 4.30pm, adjusting for the fact that Centrica (3.6p/2.1%), HSBC (7.6p/1.0%) and Tesco (1p/0.5%) will trade without the rights to their latest dividend from 8am tomorrow.
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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