This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
| UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| BP PLC | 413.35 | 20.8 | 5.3 | 0.6 |
| Glencore PLC | 252.55 | 12.0 | 5.0 | -15.5 |
| BG Group PLC | 852.5 | 32.1 | 3.9 | -1.5 |
| Anglo American PLC | 1099.5 | 40.0 | 3.8 | -8.4 |
| Fresnillo PLC | 884.5 | 29.5 | 3.5 | 15.5 |
| Antofagasta PLC | 691 | 21.0 | 3.1 | -8.2 |
| BHP Billiton PLC | 1388 | 40.0 | 3.0 | 0.0 |
| Tullow Oil PLC | 364.7 | 9.8 | 2.8 | -11.9 |
| UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| easyJet PLC | 1600 | -45.0 | -2.7 | -4.3 |
| Meggitt PLC | 509 | -9.0 | -1.7 | -1.9 |
| Associated British Foods PLC | 3093 | -54.0 | -1.7 | -1.9 |
| Wolseley PLC | 3632 | -63.0 | -1.7 | -1.5 |
| Dixons Carphone PLC | 427.5 | -6.9 | -1.6 | -7.6 |
| Barclays PLC | 224.35 | -3.6 | -1.6 | -7.9 |
| Burberry Group PLC | 1658 | -26.0 | -1.5 | 1.3 |
| Mondi PLC | 1063 | -15.0 | -1.4 | 1.2 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 6,550.3 | 51.5 | 0.79 | -0.2 |
| UK | 15,922.5 | 7.2 | 0.05 | -1.0 |
| FR CAC 40 | 4,379.6 | 56.4 | 1.31 | 2.5 |
| DE DAX 30 | 10,167.8 | 135.2 | 1.35 | 3.7 |
| US DJ Industrial Average 30 | 17,511.6 | 190.9 | 1.10 | -1.7 |
| US Nasdaq Composite 100 | 4,634.4 | 63.6 | 1.39 | -2.1 |
| US S&P 500 | 2,019.4 | 26.8 | 1.34 | -1.9 |
| JP Nikkei 225 | 17,014.3 | 150.1 | 0.89 | -2.5 |
| HK Hang Seng Index 48 | 23,605.7 | -497.8 | -2.07 | 0.0 |
| AU S&P/ASX 200 | 5,309.1 | 9.9 | 0.19 | -1.9 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, US Light Sweet ($/barrel) | 49.07 | 0.16 | 0.32 | -8.9 |
| Crude Oil, Brent ($/barrel) | 50.17 | 0.97 | 1.97 | -14.5 |
| Gold ($/oz) | 1276.50 | -3.80 | -0.3 | 8.2 |
| Silver ($/oz) | 17.72 | -0.07 | -0.37 | 13.4 |
| Platinum ($/oz) | 1267.90 | 7.50 | 0.6 | 4.9 |
| GBP/USD – US$ per £ | 1.514 | – | -0.07 | -2.7 |
| EUR/USD – US$ per € | 1.156 | – | -0.11 | -4.4 |
| GBP/EUR – € per £ | 1.310 | – | 0.03 | 1.7 |
Click graph to enlarge
See Live Macro Calendar for full data line-up, incl. consensus expectations
UK 100 Index called to open +25pts at 6575 having successfully broken above 6530 and the trend of falling highs from early December. Another January test of 6600 is good to see and more progress could allow for completion of double bottom (6330-6580) around 6830, but falling highs from September still a hurdle at 6685 along with 200-day moving average at 6650. Watch levels: Bullish 6625, Bearish 6540.
The positive open, adding to last week’s strong gains, can be attributed to SNB-fuelled anticipation of the ECB delivering on expectations of further stimulus in the form of sovereign QE to support the struggling Eurozone region coupled with a strong US data which revived confidence on global growth. Note US markets close early today for Martin Luthur King day.
US bourses closed in positive territory thanks to ECB QE speculation (a German-friendly proposal?) coupled with macro data beats by Uni of Michigan Consumer Confidence (11yr high) and Manufacturing Production which offset weak inflation (expected, oil drop) and a bumpy start to earnings season by banking majors. While the Fed’s Williams spoke of rate hike decision making by mid-year, Bullard said low inflation not enough to justify zero rates.
Asian stocks mostly higher, with Japan’s Nikkei benefiting from improved Consumer Confidence (although a 38.8 reading is still bleak; hurt by sales tax hikes, recession) and Industrial Production data in-line with preliminaries. Australia’s ASX just positive, helped by stronger Oil prices and US Consumer Confidence jump and despite China weakness.
China stocks posting biggest drop since 2009 on news that three of the nation’s biggest brokerages have been forced to stop adding margin-trading accounts in a crackdown on risky investments as well as more weak Property Price data over the weekend (largest annual drop since 2011, but monthly change improving). A PBOC speaker also warned on investment reliance and debt levels with caution required on monetary policy.
In focus; On account of it being Martin Luthur King day in the US, macro data and events to watch are thin on the ground, with just the Eurozone Current Account and Construction Output to look out for this morning.
Gold has extended gains to $1280 having broken above the trend of falling highs from October 2012, the 200-day moving average and completed its bullish flag pattern. Safehaven demand back in vogue despite strong USD, due to potential ECB QE announcement this week and resultant volatility.
Oil has built on last week’s gains to trade back around $48/50/barrel showing more signs of stabilisation/base-making. Rising support from 13 Jan lows, but ECB QE could weaken EUR and strengthen USD denting oil in due course. Any news/comments on supply/production will keep it volatile. Off its highs on Iraq/Saudi output news.
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.
See Live Macro Calendar for full data line-up, incl. consensus expectations
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