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| Yesterday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Micro Focus | 2077 | 75 | 3.7 | 50.2 |
| Admiral | 2191 | 79 | 3.7 | 7.0 |
| Halma | 2071 | 63 | 3.1 | 51.8 |
| Ashtead | 2223 | 58 | 2.7 | 35.8 |
| Reckitt Benckiser | 6349 | 140 | 2.3 | 5.6 |
| Yesterday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Sainsbury | 188 | -8 | -4.0 | -29.1 |
| BT | 194.8 | -6.5 | -3.3 | -18.2 |
| Flutter Ent (Paddy Power) | 5690 | -174 | -3.0 | -11.1 |
| Kingfisher | 202.2 | -5.6 | -2.7 | -2.5 |
| Marks & Spencer | 204.2 | -5.6 | -2.7 | -13.6 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,416.7 | 9.2 | 0.1 | 10.2 |
| UK | 19,299.7 | -24.9 | -0.1 | 10.3 |
| FR CAC 40 | 5,521.7 | -6.6 | -0.1 | 16.7 |
| DE DAX 30 | 12,274.6 | -65.3 | -0.5 | 16.3 |
| US DJ Industrial Average 30 | 26,727.5 | 8.3 | 0.0 | 14.6 |
| US Nasdaq Composite | 8,005.7 | -26.0 | -0.3 | 20.7 |
| US S&P 500 | 2,945.4 | -5.1 | -0.2 | 17.5 |
| JP Nikkei 225 | 21,158.7 | -127.3 | -0.6 | 5.7 |
| HK Hang Seng Index 50 | 28,125.4 | -387.6 | -1.4 | 8.8 |
| AU S&P/ASX 200 | 6,662.9 | -2.5 | 0.0 | 18.0 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 57.55 | 0.6 | 1.0 | 26.7 |
| Crude Oil, Brent ($/barrel) | 63.87 | 0.2 | 0.3 | 18.0 |
| Gold ($/oz) | 1423.67 | 6.7 | 0.5 | 11.0 |
| Silver ($/oz) | 15.29 | 0.0 | -0.3 | -1.1 |
| GBP/USD – US$ per £ | 1.2748 | – | 0.07 | 0.0 |
| EUR/USD – US$ per € | 1.1399 | – | 0.00 | -0.6 |
| GBP/EUR – € per £ | 1.1184 | – | 0.08 | 0.6 |
UK 100 called to open -25pts at 7395, still within a 7370-7440 narrowing pattern. Bulls need a break back above 7400 in order to be able to challenge falling highs resistance at 7440. Bears require a drop below 7380 to breach rising support. Watch levels: Bullish 7405, Bearish 7375.
Calls for a negative open stem from continued geopolitical jitters ahead of Trump’s meeting with his Chinese counterpart at the G20 meeting in Japan. Trade truce or more tariffs? This while we digest the US imposing yet more sanctions on Iran, preferring stick rather than carrot to reduce nuclear risk. Oil prices off highs, Gold still trying higher, USD weakness pushing GBP higher to hamper the UK Index .
Petrofac trading in-line, solid operational performance across the business. New order intake ($1.7B) reflects recent challenges in Saudi Arabia and Iraq; Bid pipeline of $15B for second half. Well positioned with good revenue visibility and strong balance sheet; engineering and construction margins seen at low end of guidance.
Anglo American’s diamond subsidiary De Beer’s reports fifth cycle sales of $390m; -6% vs cycle 4 and -32.8% year-on-year. US Retail sentiment for diamond jewellery remains solid, China more challenging; high polished diamond inventories resulted in caution from rough diamond buyers.
The Telegraph reports BT has started work to sell its Spanish business as it ramps up restructuring of its international arm and its UK broadband strength is called into question.
Renishaw’s Group Engineering Director, to resign for family reasons, taking on a part time role as Director of Group Technology.
Costain appointed sole maintenance-service provider in £35m/year contract United Utilities
Carpetright narrows FY pretax loss amid restructuring of UK store estate (closed 80 stores). Revenues -13%, underlying EBITDA -59%; returned to like-for-like sales growth in first eight weeks of fiscal 2020. Uncertainty clouds near term outlook for retail, but turnaround on track.
Northgate revenues +6% (hire +9.9%, sales -1.1%), pre-tax profit +15%; Final div +4.3%; expects low-to-mid single-digit percentage rental revenue growth; rental-profit margin to increase 50bp.
S&P sees Ferrexpo outlook as negative
Genel Energy to launch $10m share buyback through 5 July; says share price doesn't accurately reflect value of shares; will retain sufficient liquidity to strengthen portfolio.
Data: UK CBI Trades Survey (11am), US House Prices (2pm), US New Home Sales, Richmond Fed and Consumer Confidence (3pm), API Oil Inventories (9.30pm)
Speakers - ECB de Guindos (8.15am), Fed’s Williams (1.45pm), Fed’s Bostic (5pm), Fed Chair Powell (6pm), ECB’s Coeure (6.15pm) , Fed’s Bullard (11.30pm)
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Prepared by Michael van Dulken, Head of Research