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 |
| Glencore | 80.85 | 2.3 | 2.9 | -10.6 |
| Sage Group | 568 | 13.5 | 2.4 | -5.9 |
| Berkeley Group | 3547 | 82.0 | 2.4 | -3.8 |
| Persimmon | 1948 | 37.0 | 1.9 | -3.9 |
| AstraZeneca | 4440.5 | 80.0 | 1.8 | -3.8 |
| UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Kingfisher | 323.9 | -21.1 | -6.1 | -1.7 |
| Lloyds Banking | 63.14 | -3.7 | -5.6 | -13.6 |
| Barclays | 181.85 | -8.9 | -4.7 | -16.9 |
| Royal Bank of Scotland | 251.3 | -10.8 | -4.1 | -16.8 |
| BT Group | 471 | -16.3 | -3.3 | -0.2 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 5,877.0 | -23.0 | -0.39 | -5.9 |
| UK | 16,147.0 | 19.0 | 0.12 | -7.4 |
| FR CAC 40 | 4,311.3 | -25.4 | -0.58 | -7.0 |
| DE DAX 30 | 9,736.2 | -28.7 | -0.29 | -9.4 |
| US DJ Industrial Average 30 | 15,885.3 | -208.3 | -1.29 | -8.8 |
| US Nasdaq Composite | 4,518.5 | -72.7 | -1.58 | -9.8 |
| US S&P 500 | 1,877.1 | -29.8 | -1.56 | -8.2 |
| JP Nikkei 225 | 16,708.9 | -402.0 | -2.35 | -12.2 |
| HK Hang Seng Index 48 | 18,880.5 | -459.7 | -2.38 | -13.8 |
| AU S&P/ASX 200 | 5,006.6 | 90.6 | 1.84 | -5.5 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas ($/barrel) | 29.49 | -1.29 | -4.18 | -20.5 |
| Crude Oil, Brent ($/barrel) | 29.50 | -1.49 | -4.81 | -21.6 |
| Gold ($/oz) | 1114.95 | 6.05 | 0.55 | 5.1 |
| Silver ($/oz) | 14.31 | 0.06 | 0.44 | 3.5 |
| GBP/USD – US$ per £ | 1.42 | – | -0.26 | -3.6 |
| EUR/USD – US$ per € | 1.09 | – | 0.04 | 0.0 |
| GBP/EUR – € per £ | 1.31 | – | -0.32 | -3.6 |
Click graph to enlarge
UK 100 Index called to open -75pts at 5800 with the 2-day rebound having already turned over, close to retracing 50% of its gains from 5600 3yr-lows. The failure at 5950 maintains shallow falling highs from 7 Jan and keeps the 2016 downtrend intact. Note Bulls still pinning hopes on a 2-week complex inverse Head & Shoulders reversal. Bullish 5860, Bearish 5785.
The negative opening call comes after Asian equities went into reverse following a weak US close on poor manufacturing data and central bank policy uncertainty. Also fuelling weakness was Oil breaking back below the now key $30/barrel ahead of US stockpile data which rekindled global growth concerns as major producers refuse to cut output..
After the recent rally, anxiety on the rise regarding the outcome of Fed and BoJ meetings this week (Weds & Friday) with much debate about whether the former hiked too early. Note ECB President Draghi forced to remain defiant on policy choices amid claims of lost credibility on inflation targets before it meets on 7 March.
Stocks in China have plunged to 13-month lows on capital outflow concerns from its transitioning economy and despite the PBOC flooding the system with cash to keep borrowing costs in check ahead of the Lunar Holiday.
US markets returned to red territory on Monday with the usual suspects - er, energy - leading declines on the back of tanking oil prices, which had previously enjoyed a strong rebound from multi-year lows helped by short covering. Note market bellwether Caterpillar sinking after Goldman Sachs downgraded the heavy machinery company to "Sell." CAT reports on Thursday.
The US Fed begins a two-day meeting today, but no change in rates is expected. Nonetheless, note post-meeting rhetoric coming out tomorrow for commentary on current market conditions.
In focus today amid a quiet macro line-up, we have US Housing Price data this afternoon seen delivering continued stable growth, although US PMI Services and the Richmond Fed Manufacturing may have ticked back in January, adding to the weak Dallas Fed that spooked US markets yesterday. Consensus expects flat US Consumer Confidence in January.
Keep an eye on GBP, the UK banks and property related stocks today with BoE Governor Carney testifying on the Financial Stability Report before the Treasury Select Committee. Note results out tonight from big hitters Apple , AT&T, J&J and P&G.
The catalyst for yesterday’s slippery crude sell-off that took the commodity back below $30 was put down to continued global oversupply as US supply is seen expanding the glut. Note also a delighted Iraqi oil minister said the country had pumped record output in December and expects to ramp it up even further this year. Well done you!
Gold’s uptrend continues with a good break above $1110 - that level now support - and the ceiling of a 10-day rising channel looking like the next target around $1123 or $1125. Global uncertainty & mainstream media fear mongering are doing good things for the yellow metal.
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