This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
| Yesterday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Scottish Mortgage Investment Trust | 481 | 26.6 | 5.9 | 7.1 |
| Barratt Developments | 513.8 | 26 | 5.3 | -20.7 |
| Fresnillo | 876.4 | 37.4 | 4.5 | -38.7 |
| Ocado | 813.2 | 33.8 | 4.3 | 104.8 |
| Anglo American | 1684 | 64 | 4.0 | 8.7 |
| Yesterday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Imperial Brands | 2516.5 | -161.5 | -6.0 | -20.5 |
| British American Tobacco | 3272 | -133 | -3.9 | -34.8 |
| United Utilities | 687.4 | -17 | -2.4 | -17.1 |
| Hargreaves Lansdown | 1806.5 | -44 | -2.4 | 0.3 |
| DS Smith | 407 | -9.4 | -2.3 | -15.5 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 6,995.9 | -11.0 | -0.16 | -9.0 |
| UK | 18,973.4 | 145.7 | 0.77 | -8.5 |
| FR CAC 40 | 5,096.0 | -10.4 | -0.20 | -4.1 |
| DE DAX 30 | 11,523.8 | -15.6 | -0.13 | -10.8 |
| US DJ Industrial Average 30 | 25,340.0 | 287.3 | 1.15 | 2.5 |
| US Nasdaq Composite | 7,496.9 | 167.8 | 2.29 | 8.6 |
| US S&P 500 | 2,767.1 | 38.8 | 1.42 | 3.5 |
| JP Nikkei 225 | 22,297.2 | -397.4 | -1.75 | -2.1 |
| HK Hang Seng Index 50 | 25,514.7 | -286.8 | -1.11 | -14.7 |
| AU S&P/ASX 200 | 5,837.1 | -58.6 | -0.99 | -3.8 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 71.87 | 0.17 | 0.24 | 19.5 |
| Crude Oil, Brent ($/barrel) | 81.20 | 0.49 | 0.61 | 21.9 |
| Gold ($/oz) | 1221.46 | 1.86 | 0.15 | -6.3 |
| Silver ($/oz) | 14.60 | 0.07 | 0.45 | -13.5 |
| GBP/USD – US$ per £ | 1.3107 | – | -0.34 | -2.9 |
| EUR/USD – US$ per € | 1.1547 | – | -0.11 | -3.8 |
| GBP/EUR – € per £ | 1.1353 | – | -0.19 | 0.9 |
Click graph to enlarge
UK 100 Index called to open flat at 6996, holding the bounce above Friday’s 6954 lows. Bulls need a break above overnight 7021 highs to extend the bounce further and reverse the negative momentum. Bears require a breach of 6986 overnight lows for another downward test of last Thursday’s 6954 lows. Watch levels: Bullish 7011, Bearish 6980
Calls for a muted open come after a negative start to the week in Asia, where concerns over rising US interest rates continued weighing on equities. Brexit negotiations suffered another setback over the weekend, as PM Theresa May rejected key EU proposals over the Irish border, dealing a blow to negotiations to avert a hard Brexit. This has sent the GBP sharply lower ahead of an EU leaders summit on Wednesday, helping UK Index ’s international names.
Oil prices are trending up (Brent touching $82 handle overnight, helping UK Index Energy names) as the diplomatic conflict between the West and Saudi Arabia over the fate of the missing journalist Jamal Khashoggi led to veiled threats by the Kingdom over supply of crude.
In corporate news this morning, BHP Billiton awarded a A$1.2bn coal mining contract to Australia’s CIMIC group. Virgin Money and CYBG reached agreement on the terms of the all-share merger, with the CYBG acquisition of rival challenger bank now complete. Virgin Money shares to stop trading on 15 Oct.
ConvaTec Q3 organic growth +0.4% YoY, Wounds +0.8%, Ostomy +1.5%, Critical +1.4%, Infusion Devices -3.7%. FY revenue guidance lowered to flat-to-1% (from 2.5-3%) due to inventory policy change by biggest Infusion Devices customer. EBIT margin guidance also revised down. CEO Moraviec retires with immediate effect.
Polymetal increased its stake in Veduga gold deposit to 74.3% by purchasing 31.7% stake from Amikan for $19.7m (payable in Polymetal shares). IQE appointed Tim Pullen (current ARM CFO) its new CFO (effective early 2019).
Greencore sells its US packaging subsidiary ($1.4bn 2017 revenue) to Hearthside Foods for £817m, subject to regulatory approval. £509m to be returned to shareholders via a 72p special dividend. Company plans to focus on UK market following the sale in late November.
In focus today - in terms of macro data - US Retail Sales (1.30pm) may offer inflationary read-across to the Fed and USD, especially if growth rebounded as much as expected in September. US Empire State Manufacturing (1.30pm) is expected flat but US Business Inventories (3pm) should post another month of solid growth in August.
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.
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