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| UK 100 Leaders | Close | Chg | % Chg | % YTD |
| Morrison (Wm) Supermarkets PLC | 201.2 | 3.9 | 2.0 | -22.9 |
| Fresnillo PLC | 908.5 | 9.0 | 1.0 | 21.9 |
| Resolution Ltd | 278.9 | 1.6 | 0.6 | -21.2 |
| Unilever PLC | 2635 | 13.0 | 0.5 | 6.2 |
| Burberry Group PLC | 1413 | 6.0 | 0.4 | -6.8 |
| Centrica PLC | 334.9 | 1.2 | 0.4 | -3.7 |
| BG Group PLC | 1113.5 | 0.5 | 0.0 | -14.2 |
| Sainsbury (J) PLC | 309.6 | 0.0 | 0.0 | -15.2 |
| UK 100 Laggards | Close | Chg | % Chg | % YTD |
| International Consolidated Airlines Group SA | 392.1 | -21.8 | -5.3 | -2.3 |
| Hargreaves Lansdown PLC | 1257 | -67.0 | -5.1 | -7.2 |
| Sports Direct International PLC | 771 | -39.0 | -4.8 | 7.8 |
| Ashtead Group PLC | 880 | -43.5 | -4.7 | 15.8 |
| ARM Holdings PLC | 958.5 | -45.5 | -4.5 | -12.8 |
| London Stock Exchange Group PLC | 1803 | -82.0 | -4.4 | 4.0 |
| ITV PLC | 183 | -7.1 | -3.7 | -5.7 |
| easyJet PLC | 1700 | -61.0 | -3.5 | 10.7 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 6,561.70 | -80.27 | -1.21 | -2.78 |
| UK | 15,898.40 | -250.14 | -1.55 | -0.23 |
| FR CAC 40 | 4,365.86 | -47.63 | -1.08 | 1.63 |
| DE DAX 30 | 9,315.30 | -139.25 | -1.47 | -2.48 |
| US DJ Industrial Average 30 | 16,026.80 | -143.42 | -0.89 | -3.32 |
| US Nasdaq Composite 100 | 3,999.73 | -54.38 | -1.34 | -4.23 |
| US S&P 500 | 1,815.69 | -17.39 | -0.95 | -1.77 |
| JP Nikkei 225 | 13,963.15 | 3.10 | 0.02 | -14.29 |
| HK Hang Seng Index 48 | 23,005.79 | 2.15 | 0.01 | -1.29 |
| AU S&P/ASX 200 | 5,364.10 | -64.55 | -1.19 | 0.22 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, US Light Sweet ($/barrel) | 104.22 | 0.89 | 0.86 | 4.691 |
| Crude Oil, Brent ($/barrel) | 107.89 | 0.215 | 0.2 | -2.7941 |
| Gold ($/oz) | 1327 | 8.6 | 0.65 | 9.429 |
| Silver ($/oz) | 20.0375 | 0.0775 | 0.39 | 2.7542 |
| Platinum ($/oz) | 1466.5 | 9.5 | 0.65 | 6.033 |
| GBP/USD – US$ per £ | 1.6738 | – | 0.07 | 1.0695 |
| EUR/USD – US$ per € | 1.3854 | – | -0.31 | 1.0985 |
| GBP/EUR – € per £ | 1.2083 | – | 0.38 | -0.1576 |
Click graph to enlarge
See Live Macro Calendar for full data line-up, incl. consensus expectations
UK 100 called to open -35ts at 6525 this morning after US equities extended losses on Friday (S&P500’s worst week since Jan), the technology sector continuing to suffer (Nasdaq’s worst week since 2012) from fears of overhype and lofty valuations after the recent market advances (something also hurting many recent UK IPOs) as well as a disappointing Q1 earnings report from US banking giant JPMorgan weighing on financials even if peer Wells Fargo beat consensus earnings. Remember Citigroup reports Q1 today, Bank of America on Weds and Goldman Sachs on Thurs.
Over the weekend, Ukraine tensions escalated from Friday (supporting commodity prices on supply fears) with the acting-President announcing plans for anti-terrorist operations and a deadline (now passed) for pro-Russians to surrender. ECB president Draghi dovishly said further EUR strengthening could trigger more easing from the bank, while after recent mini-stimulus efforts the Chinese vice finance minister said the government would roll-out nothing major while ‘growth is within normal ranges’.
Overnight, Asian stocks have opened the week by fluctuating in light of the weak US close last week but with risk appetite to the downside as raw materials focused names (RIO down in Australia) declined and Sharp (display supplier for Apple) shares slumped on capital increase considerations. On the macro data-front, UK Rightmove House Prices continuing their rise ever higher to a new record high, while Irish Construction PMI improved significantly and Aussie Credit Card use rose.
In focus today, today we have Eurozone Industrial Production data which is seen rebounding a little in February, although annual growth is expected to have slowed. In the afternoon, US Advance Retail Sales are also seen accelerating in March, another potential signal of a return of demand/consumer confidence after the bad early year weather and supportive of reduced US monetary stimulus. Later in the day, US Business Inventories are also seen rising.
At the IMF, while Chancellor Osborne spoke of cracking down on tax evasion/avoidance (even if unaware), the ECB’s Nowotny said fresh stimulus are clearly possible but the bank would wait until June to consider but said buying Asset Backed Securities would send a strong a signal. G20 finance ministers and Eurogroup head Djisselbloem said Greece might need another bailout after the summer.
The UK 100 has testing and rebounded from the mid-March support at 6500, however it remains in downtrend from the sharp sell-off from just shy of 6700. A break below 6500 would likely see a revisit of early Feb’s 6400 lows while a break back above the breached rising trendline from Feb at 6550 could help revive bullishness for a return to recent highs 6700.
In commodities, Brent crude and West Texas Intermediate have gained as tensions escalated between Ukraine and Russia. Russia called for an emergency meeting of the United Nations Security Council after Ukrainian security forces clashed with pro-Russian gunmen in the eastern town of Slovyansk. Brent trading at $107.85, WTI at $104.15, up from $107 and $103 respectively.
Gold is up at $1327 as the market digests the Federal Reserve minutes detailing lower rates of interest for longer period than first thought as well as being supported by tensions in Ukraine and some corporate earnings hedging.
In FX, the Euro weakened versus major peers after ECB’s Draghi said its strength “requires further monetary stimulus.” EUR/USD fell slightly to trade at $1.384 following a 1.3% advance last week. Following these comments the AUD/USD was pushed higher to trade at 93.90 US cents. With continued tensions in Ukraine, and a sell-off in US stocks, the dollar slipped against the Yen trading at ¥101.46.
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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