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| UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| TUI AG | 1236 | 65.0 | 5.6 | 2.1 |
| Glencore PLC | 78.98 | 3.8 | 5.1 | -12.7 |
| Berkeley Group Holdings (The) PLC | 3572 | 142.0 | 4.1 | -3.2 |
| CRH PLC | 1823 | 70.0 | 4.0 | -7.5 |
| Persimmon PLC | 1957 | 73.0 | 3.9 | -3.5 |
| UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Randgold Resources Ltd | 4268 | -104.0 | -2.4 | 3.0 |
| Tesco PLC | 159.1 | -2.5 | -1.5 | 6.4 |
| Fresnillo PLC | 664.5 | -10.0 | -1.5 | -6.1 |
| Pearson PLC | 684.5 | -7.5 | -1.1 | -7.0 |
| Shire PLC | 4223 | -27.0 | -0.6 | -10.1 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 5,876.8 | 96.9 | 1.68 | -5.9 |
| UK | 16,114.6 | 155.8 | 0.98 | -7.6 |
| FR CAC 40 | 4,272.3 | 82.7 | 1.97 | -7.9 |
| DE DAX 30 | 9,664.2 | 142.4 | 1.50 | -10.0 |
| US DJ Industrial Average 30 | 16,016.0 | 28.0 | 0.18 | -8.1 |
| US Nasdaq Composite | 4,477.0 | -11.5 | -0.26 | -10.6 |
| US S&P 500 | 1,881.3 | 1.0 | 0.05 | -8.0 |
| JP Nikkei 225 | 16,416.2 | -632.2 | -3.71 | -13.8 |
| HK Hang Seng Index 48 | 18,937.6 | -698.2 | -3.56 | -13.6 |
| AU S&P/ASX 200 | 4,841.5 | -61.5 | -1.26 | -8.6 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas ($/barrel) | 28.69 | -0.42 | -1.43 | -22.6 |
| Crude Oil, Brent ($/barrel) | 28.15 | -1.23 | -4.19 | -25.1 |
| Gold ($/oz) | 1092.55 | 4.75 | 0.44 | 3.0 |
| Silver ($/oz) | 14.02 | -0.02 | -0.12 | 1.4 |
| GBP/USD – US$ per £ | 1.416 | – | -0.17 | -3.9 |
| EUR/USD – US$ per € | 1.096 | – | 0.44 | 0.9 |
| GBP/EUR – € per £ | 1.292 | – | -0.6 | -4.8 |
Click graph to enlarge
Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)
UK 100 Index called to open -103pts at 5769 with yesterday’s gains yet again being given up late in the day to keep the index in a 10-day falling channel. Potential for further declines towards 5700 (and below to the channel floor). ‘Sell any rally’ mantra seems to be holding true for the time being. Watch levels: Bullish 5900, Bearish 5650.
The negative opening call comes following another dire session in Asia and weak Wall Street performance with crude oil still the foremost driver - sliding as it did through $28/bbl yesterday and compounding an already woeful outlook for global growth after the IMF cut its forecasts yesterday.
Asian Bourses posted heavy losses with Hong Kong listed Chinese stocks giving up 5% - 6-yr lows - and the broader Hang Seng index falling 4%. Mainland losses were more muted, however.
US markets just about managed to close in the green - but basically flat after futures had gone sharply higher earlier in the day. This reflecting waning confidence that market rallies are fundamentally supported by anything solid.
Investors appear to be heading back into safe havens Gold and the Japanese Yen with both showing strength yesterday - Gold now back up around $1093 while the Japanese currency is stronger against the USD which is adding to Japanese equity market woes and threatening to derail Abenomics.
Corporate news had Netflix (NFLX) beating expectations with its Q4 earnings report, with shares subsequently surging by around 9%. Look out today for UK miners BHP Billiton (BLT) and Fresnillo (FRES) offering their own Q4 operational / production updates.
In focus today on the macro front will be UK employment data that is seen softer than previous with average earnings growth slowing YoY, while in the afternoon we get US housing and inflation - the latter seen ticking up a little.
Crude prices are managing to hold just above the most recent psyche level $28, with WTI once again more expensive than Brent. Supply glut issues persist with Iran’s entry to market sure to offset the benefits of cost-cutting by oil majors (and minors for that matter).
Gold’s slow uptrend from Dec lows remains in force this morning as equity markets subside and risk appetite diminishes. Potential upside to $1120, though on what time frame is less obvious. We could even see a pullback to $1080 beforehand. Gold is not a get rich quick scheme at the moment!
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UK Company Headlines: (Source: Reuters/DJ Newswires)
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