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Morning Report - 12 January 2015

UK 100 Leaders Close (p) Chg (p) % Chg % YTD
Randgold Resources Ltd 4931 43.0 0.9 12.6
Tesco PLC 204.1 -5.2 -2.5 8.0
Fresnillo PLC 816 -8.5 -1.0 6.5
Intertek Group PLC 2459 29.0 1.2 5.4
Imperial Tobacco Group PLC 2934 -16.0 -0.5 3.5
Shire PLC 4741 55.0 1.2 4.6
Johnson Matthey PLC 3506 50.0 1.5 3.2
Carnival PLC 3016 -32.0 -1.1 3.3
UK 100 Laggards Close (p) Chg (p) % Chg % YTD
Taylor Wimpey PLC 125.7 -7.1 -5.4 -8.8
Persimmon PLC 1459 -80.0 -5.2 -7.5
Tullow Oil PLC 387 -6.9 -1.8 -6.5
Barratt Developments PLC 431.4 -23.3 -5.1 -8.4
Weir Group PLC 1767 -10.0 -0.6 -4.5
Marks & Spencer Group PLC 448 1.1 0.3 -6.4
Hargreaves Lansdown PLC 947.5 -30.0 -3.1 -6.4
Royal Bank of Scotland Group (The) PLC 367.7 -10.0 -2.7 -6.8
Major World Indices Mid/Close Chg % Chg % YTD
UK UK 100 6,501.1 -68.8 -1.05 -1.0
UK 16,011.0 -74.5 -0.46 -0.5
FR CAC 40 4,179.1 -81.1 -1.90 -2.2
DE DAX 30 9,648.5 -189.1 -1.92 -1.6
US DJ Industrial Average 30 17,737.4 -170.5 -0.95 -0.5
US Nasdaq Composite 100 4,704.1 -32.1 -0.68 -0.7
US S&P 500 2,044.8 -17.3 -0.84 -0.7
JP Nikkei 225 17,197.7 30.6 0.18 -1.4
HK Hang Seng Index 48 23,977.3 57.4 0.24 1.6
AU S&P/ASX 200 5,422.7 -42.9 -0.78 0.2
Commodities & FX Mid/Close Chg % Chg % YTD
Crude Oil, US Light Sweet ($/barrel) 47.35 -0.86 -1.78 -10.2
Crude Oil, Brent ($/barrel) 49.16 0.10 0.2 -14.8
Gold ($/oz) 1229.75 6.35 0.52 3.4
Silver ($/oz) 16.62 0.10 0.59 5.3
Platinum ($/oz) 1233.50 10.00 0.82 2.0
GBP/USD – US$ per £ 1.517 0.07 -2.7
EUR/USD – US$ per € 1.186 0.15 -2.1
GBP/EUR – € per £ 1.279 -0.07 -0.6
UK 100 called to open +14pts at 6499

UK 100 (UKX): 1-week chart (Source: IT-Finance)

Click graph to enlarge

Today's Main Events

  • 09:30     UK          Lloyds Employment Confidence
  • 15:00     US          Labor Market Conditions Index

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

 

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

UK 100 Index called to open +18 points at 6504, after a frantic Friday where US Non-Farm payrolls came in better than expected and unemployment decreased to its lowest level (5.6%) since 2008, however wage slips fell and more people dropped out of the labour force. This led to the Dow Jones having an initial push upwards but declines ensued with a 170 drop. The Federal Reserve only in December cited the lack of evidence of rising wages, which means it may keep interest rates near zero for an extended period.

With Oil prices continuing to fall and a weakened dollar over the weekend, European bourses look set for a cautious open. Of note, Goldman Sachs this morning said in a note that oil needs to trade near $40 a barrel before OPEC will consider cutting output.

UK Pharmaceutical company Shire has been doing some January Sales shopping, although how much discount they received was negligible, as they tied up their biggest acquisition to date. They spent $5.2bn in acquiring US biotech rival NPS Pharmaceuticals to expand into rare diseases. After the failure of the Abbvie deal, Shire looks to be setting its own goals for 2015.

Asian markets were mixed following the choppy trading session seen on Friday. The Australian ASX the standout loser down almost 1% hurt by commodity based stocks. The Nikkei and Hang Seng both showed modest gains to erase early losses. Chinese stocks fell for the third day, its longest losing streak since November.

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)

  • AU          Home Loans                       Missed

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

 

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

  • Unite Group acquires 13 mln stg development site
  • AO World Q3 sales up 38 pct, confident on full year
  • Allergy Therapeutics expects H1 revenue about 30 mln stg
  • Lamprell warns 2015 revenue to be 10 pct below expectations
  • Astrazeneca's MedImmune signs licensing deal with Omnis Pharmaceuticals
  • Afren says considering options for Barda Rash oilfield
  • Taylor Wimpey confident on UK housing market in 2015
  • Ithaca Energy says average pro-forma production in 2014 was about 12,300 boepd
  • Fastjet posts 106 pct rise in total December revenue

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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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