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| Yesterday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Anglo American | 1480.5 | 70.5 | 5.0 | 27.6 |
| Old Mutual | 213.1 | 9.7 | 4.8 | 2.8 |
| Rolls-Royce | 855.5 | 24.5 | 3.0 | 28.1 |
| Ashtead | 1947 | 53 | 2.8 | 23.2 |
| 3i Group | 915 | 23.5 | 2.6 | 30.0 |
| Yesterday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| easyJet | 1377 | -40 | -2.8 | 37.0 |
| WPP | 1365 | -24 | -1.7 | -24.8 |
| Morrison (Wm) Supermarkets | 213.4 | -2.1 | -1.0 | -7.5 |
| BT | 275.35 | -2.2 | -0.8 | -25.0 |
| Tesco | 206.05 | -1.3 | -0.6 | -0.4 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,537.0 | 46.4 | 0.62 | 5.5 |
| UK | 20,255.4 | 206.8 | 1.03 | 12.1 |
| FR CAC 40 | 5,420.6 | 71.3 | 1.33 | 11.5 |
| DE DAX 30 | 13,312.3 | 208.7 | 1.59 | 16.0 |
| US DJ Industrial Average 30 | 24,792.3 | 140.5 | 0.57 | 25.5 |
| US Nasdaq Composite | 6,994.8 | 58.2 | 0.84 | 29.9 |
| US S&P 500 | 2,690.2 | 14.4 | 0.54 | 20.2 |
| JP Nikkei 225 | 22,868.0 | -33.8 | -0.15 | 19.6 |
| HK Hang Seng Index 50 | 29,317.4 | 266.9 | 0.92 | 33.3 |
| AU S&P/ASX 200 | 6,071.8 | 32.9 | 0.54 | 7.2 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 57.46 | -0.01 | -0.01 | 6.6 |
| Crude Oil, Brent ($/barrel) | 63.59 | 0.04 | 0.06 | 11.8 |
| Gold ($/oz) | 1263.90 | 0.30 | 0.02 | 9.8 |
| Silver ($/oz) | 16.15 | 0.14 | 0.84 | -0.4 |
| GBP/USD – US$ per £ | 1.3390 | – | 0.09 | 8.4 |
| EUR/USD – US$ per € | 1.1797 | – | 0.11 | 12.2 |
| GBP/EUR – € per £ | 1.1351 | – | -0.02 | -3.3 |
Click graph to enlarge
UK 100 Index called to open flat at 7537, back from an overnight flirt with 7550 but, importantly, holding its break above 7520 to keep alive the uptrend from 8 Dec. Bulls need a break above overnight highs, bears a breach of the recent break higher. Watch levels: Bullish 7550, Bearish 7520
Calls for a muted start are despite yet another trifecta of record highs on Wall St on continued tax reform optimism. Asian investors were largely content to jump on the US coat-tails again, regional bourses mostly higher supported by world bank upping China 2017 GDP estimates on rising household incomes and global trade recovery. A USD pullback overnight, however, is holding the UK UK Index and German DAX back via reciprocal GBP and EUR strength.
Down under, note Miners and financials higher, the former helped by the World Bank update on China and a weaker USD, while Energy steady, all of which may have a positive knock on for the UK Index . Japan’s Nikkei the only regional loser as industrial weakness offsets discretionary gains. Globally, the Santa Rally remains tact.
In corporate news, Acacia Mining sells non-core 2% royalty asset Hound Mine, Burkino Faso, to Sandstorm for $45m. Petrofac to take small impairment after migrating onshore Santuario (Mexico) Production Enhancement Contract into 36% interest in 25-35yr Production Sharing Contract.
Genel Energy receives $25.5m from Kurdistan Regional Government for Sept-Oct Oil sales. St. Modwen refinances with new £475m unsecured revolving credit facility, initial 5yr maturity extendable to 7yrs. BHP Billiton threatens to leave World Coal Association over climate policy
US equity markets notched another set of record closing highs as fresh optimism that Republicans will pass their highly anticipated tax reform bill into law saw equities rally. Once again, the Tech-focused Nasdaq outperformed, closing just shy of 7000pts, while the S&P 500 advanced on materials and telecommunications strength and the Dow Jones saw large-cap stocks (Caterpillar, Goldman Sachs, Apple) contribute the most gains.
Another sparse macro data calendar today will once again leave the progress of the US tax reform bill in focus today. Expectations are for Congress to undertake a final vote approving the new streamlined bill today or tomorrow - Hour of Representatives today (US pm), Senate today (after Reps.) or tomorrow - after two Republican senators lent their full support to the bill yesterday.
Data-wise we are limited to German IFO Surveys (9am), with both Business Climate and Current Situations seen rising further in December while Expectations retreat, Eurozone Construction Output (10am) looks to improve on September’s 3-month high and US Housing Starts & Building Permits (1:30pm) are forecast to have cooled from 12 and 24-month highs respectively.
Speakers include the ECB’s Hansson and Visco (9am & 9:30am, respectively), and resident Federal Reserve dissenter Kashkari (6:10pm) speaks again, in a moderated Q&A session.
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