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Morning Report - 27 August 2014

UK 100 Leaders Close (p) Chg (p) % Chg % YTD
International Consolidated Airlines Group SA 358.1 12.1 3.5 16.2
CRH PLC 1420 41.0 3.0 -1.4
easyJet PLC 1354 35.0 2.7 8.2
Ashtead Group PLC 973 23.0 2.4 55.6
Morrison (Wm) Supermarkets PLC 181.8 4.1 2.3 -36.9
G4S PLC 271.2 5.8 2.2 9.8
Associated British Foods PLC 2871 59.0 2.1 51.7
Rexam PLC 499.3 10.2 2.1 -10.9
UK 100 Laggards Close (p) Chg (p) % Chg % YTD
Antofagasta PLC 798.5 -9.5 -1.2 -14.1
Reckitt Benckiser Group PLC 5210 -55.0 -1.0 16.1
Rio Tinto PLC 3357.5 -35.0 -1.0 8.2
Fresnillo PLC 912.5 -9.0 -1.0 -18.9
Smith & Nephew PLC 1050 -8.0 -0.8 34.5
St James’s Place PLC 740 -5.0 -0.7 19.8
Pearson PLC 1121 -7.0 -0.6 -14.6
Sage Group (The) PLC 397 -1.4 -0.4 12.8
Major World Indices Mid/Close Chg % Chg % YTD
UK UK 100 6,822.8 47.5 0.70 1.1
UK 15,998.0 116.9 0.74 0.4
FR CAC 40 4,393.4 51.3 1.18 2.3
DE DAX 30 9,588.2 78.0 0.82 0.4
US DJ Industrial Average 30 17,106.7 29.8 0.17 3.2
US Nasdaq Composite 100 4,570.6 13.3 0.29 9.4
US S&P 500 2,000.0 2.1 0.11 8.2
JP Nikkei 225 15,532.6 11.3 0.07 -4.7
HK Hang Seng Index 48 25,067.0 -7.5 -0.03 7.6
AU S&P/ASX 200 5,648.6 11.0 0.19 5.5
Commodities & FX Mid/Close Chg % Chg % YTD
Crude Oil, US Light Sweet ($/barrel) 93.79 0.31 0.33 -5.0
Crude Oil, Brent ($/barrel) 102.81 0.13 0.12 -7.2
Gold ($/oz) 1281.90 5.00 0.39 6.4
Silver ($/oz) 19.36 0.03 0.13 -0.3
Platinum ($/oz) 1418.00 -0.40 -0.03 3.2
GBP/USD – US$ per £ 1.655 -0.13 0.0
EUR/USD – US$ per € 1.317 -0.12 -4.2
GBP/EUR – € per £ 1.257 -0.01 4.2
UK Index called to open -12pts at 6813

1 Week, 5 Min

Click graph to enlarge

Today's Main Events

  • 07:00     DE           Import Price Index
  • 07:00     DE           GFK Consumer Confidence
  • 12:00     US          MBA Mortgage Applications

 

See Live Macro Calendar for full data line-up, incl. consensus expectations

Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

 

The UK 100 Index is called to open lower by 12pts at 6813pts, having added 47pts since Friday's closing level.

International Consolidated Airlines (IAG.L) attracted traders for a number of reasons. The shares still have 30% to climb before reaching the 2014 high, combined with a declining oil price, broker upgrades and hope the Icelandic volcano eruption will become a non-event and you have an opportunity too tempting for some. Shares closed 3.50% higher.

An almost identical set of circumstances saw easyJet (EZJ.L) finish the day as the third highest climber up 2.65%.

AstraZeneca (AZN.L) and GlaxoSmithKline (GSK.L) continued to trade higher as the M&A rumour mill continued to turn. Shares added 1.12% and 1.26% respectively.

WPP (WPP.L) advanced 1.39% after reporting better-than- expected revenue.

Royal & Sun Alliance (RSA.L) climbed 1.58% after Bank of America Merrill Lynch recommended buying the stock.

Antofagasta (ANTO.L) fell 1.18% after posting a drop in profit.

BREAKING NEWS - London estate agent Foxtons (FOXT.L) reported a first half increase in revenue of 16% and an increase in profit of 57%.

UK 100 played catch-up after the Bank holiday on hope of Eurozone stimulus. Traders are hoping European Central Bank President Mario Draghi could soon begin quantitative easing.

U.S. Markets enjoyed another positive session. The Dow Jones hit a new record high of 17,153.80pts. So too the S&P 500, reaching 2,005pts before closing above 2,000pts for the very first time as geopolitical tensions showed signs of easing and traders took positions on hopes of stimulus measures being implemented in Europe.

The U.S. economy continued to show signs of strengthening as durable goods orders and consumer confidence data came in stronger than expected.

Asian markets embraced the equity moves in Europe and the U.S. with gains recorded in Japan, China, India and Australia.

In commodities, gold held below the $1300 handle, trading at $1282 as investors continued to weigh a strengthening US economy and dollar against signs of easing tensions worldwide. With US equity markets hitting fresh highs yesterday this dampened demand for it safe haven appeal. Looking back at historic figures gold typically tends to have its best performance in September, averaging 3% gain over the past 20 years.

WTI bounced slightly nearing a three-day high at $93.93 a barrel ahead of crude data later today.

In FX, the dollar climbed to its highest level in almost a year against the euro on speculation that the Fed would increase rates early next year and that the ECB would add stimulus.

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.

 

 

Key Overnight Macro Data: (Source: Reuters/DJ Newswires)

  • AU          Construction Work Done                              Worse
  • CH          Westpac-Mni Consumer Sentiment        Declined

 

See Live Macro Calendar for full data line-up, incl. consensus expectations

 

UK Company Headlines: (Source: Reuters/DJ Newswires)

  • Grafton says confident of meeting trading targets
  • BG says Mzia well test supports potential hub offshore Tanzania
  • Ophir says Tanzania's Mzia well test ahead of expectations
  • Foxtons to pay special dividend after earnings hike
  • Russia's Evraz posts $1 mln net profit in H1
  • RBS fined 14.5 mln stg for mortgage sales failings
  • Coal of Africa reaches settlement deal with Grindrod units
  • Chime Communications operating profit grows 50 pct
  • Cape H1 revenue down 13 pct
  • Energy services firm Cape's profit surges on contract wins
  • APR Energy first-half revenue rises
  • McColl's Retail Group Q3 sales up 4.3 pct
  • Balfour Beatty ups value of PPP portfolio after review

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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

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