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| Friday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| WPP | 955.0 | 49.0 | 5.4 | 21.0 |
| Smurfit Kappa | 2356 | 62 | 2.7 | -17 |
| Hargreaves Lansdown | 2276 | 51 | 2.3 | 96 |
| BT | 230 | 5.1 | 2.2 | 0.15 |
| Centrica | 106.35 | 2.2 | 2.1 | 0.6 |
| Friday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Royal Bank of Scotland | 240 | -10 | -4.0 | -22.4 |
| Glencore | 310.85 | -10.6 | -3.3 | -27.35 |
| BP | 556.1 | -13.2 | -2.3 | -11.6 |
| easyJet | 1154 | -21.5 | -1.8 | -65 |
| Royal Dutch Shell | 2452.5 | -43.5 | -1.7 | -31.5 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,428.2 | -5.9 | -0.1 | 10.4 |
| UK | 19,857.0 | -14.1 | -0.1 | 13.5 |
| FR CAC 40 | 5,569.4 | 11.7 | 0.2 | 17.7 |
| DE DAX 30 | 12,315.2 | 32.6 | 0.3 | 16.6 |
| US DJ Industrial Average 30 | 26,543.3 | 81.3 | 0.3 | 13.8 |
| US Nasdaq Composite | 8,146.4 | 27.7 | 0.3 | 22.8 |
| US S&P 500 | 2,939.9 | 13.7 | 0.5 | 17.3 |
| JP Nikkei 225 | 22,258.7 | Closed | Closed | 11.2 |
| HK Hang Seng Index 50 | 29,859.9 | 254.9 | 0.9 | 15.5 |
| AU S&P/ASX 200 | 6,355.4 | -30.3 | -0.5 | 12.6 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 62.96 | 0.0 | 0.0 | 38.6 |
| Crude Oil, Brent ($/barrel) | 71.77 | -0.1 | -0.2 | 32.5 |
| Gold ($/oz) | 1285.57 | -1.7 | -0.1 | 0.2 |
| Silver ($/oz) | 14.87 | 0.1 | 0.4 | -3.9 |
| GBP/USD – US$ per £ | 1.2936 | – | 0.1 | 1.4 |
| EUR/USD – US$ per € | 1.1157 | – | 0.1 | -2.7 |
| GBP/EUR – € per £ | 1.1595 | – | 0.1 | 4.3 |
Click graph to enlarge
UK 100 called to open flat at 7430, holding Friday’s bounce off 7400. Bulls still need a break above Thursday’s 7460 peak to confirm an overcoming of last week’s pullback. Bears require a breach of Friday’s 7430 breakout before another test of 7400, possibly to allow for a bounce off post-Christmas rising support.Watch levels: Bullish 7460, Bearish 7425.
Calls for a flat open come after a mixed session in Asia overnight (Japan closed for Golden Week). Chinese equities have bounced after a tough week, boosted by a rebound in Industrial Profits growth, hot on the heels of Friday's surprisingly strong US GDP.
We also have fresh optimism before more US-China trade talks, as a largely positive quarterly earnings season rolls on. Australia’s ASX lower overnight, but dual-listed Miners positive thanks to Chinese data and oil holding steady following last week’s 6% pullback from recent highs.
Tesco says new accounting standard IFRS16 has no impact on cash flow. Boosts 2018/19 operating profit by 18% (rent removed, only part-replaced by depreciation), met assets -8.7%, total debt +27%.
Evraz Q1 crude steel output +12.4% QoQ or +4.1% YoY; Sales +8.4% QoQ (Semi-Finished +29%, Finished -2.7%) or +3.9 YoY. In Q2 2019, crude steel output is expected to drop by 2-5% QoQ
AstraZeneca (and US partner Merck) say Lynparza receives positive EU opinion for 1st-line maintenance treatment of BRCA-mutated advanced ovarian cancer.
GlaxoSmithKline says US FDA approves Benlysta for pediatric Lupus.
Ferrexpo says Deloitte reviewed Blooming Land accounts in 2017. Furthermore, it did not flag anything in H1 2018 results. Disagrees that it delayed independent review. Re-emphasises Blooming Land not considered a related party. Two non-exec directors also resigned.
Auto Trader says CEO Trevor Mather to retire March 2020, replaced by CFO.
Ocado says Andover fire was a result of an electrical fault in a first generation battery charging unit which set light to a plastic lid now deemed unnecessary.
Watch the like of Hammerson and INTU after the FT reported investment demand for UK Shopping Centres has stagnated according to commercial property info/analytics/marketing group CoStar.
The FT also reports that Tate & Lyle is on the prowl for acquisitions to expand its specialty ingredients business, as well as its presence in emerging markets.
Non-Standard Finance says it won't further extend the 15 May closing date for its takeover offer of Provident Financial. Has received 51% acceptance so far.
CRH confirms start of fresh €350m share buyback through 16 Aug.
Sports Direct instructed Liberum to execute 10m share, max £30m share buyback through 18 July.
Macro-economic data today includes Eurozone Business Sentiment (10am), forecast slightly stronger in April.
More US inflation data (1.30pm) should also keep markets guessing about this week’s Fed decision following Friday’s price growth data disappointment in alongside a surprisingly strong GDP print. Consensus also has the Dallas Fed (3pm) falling back negative.
Quarterly results season continues with reports from Google/Alphabet, Transocean and Spotify.
Other big events this week include US-China trade talks, Global PMIs, a Fed and BoE rate decision and US Non-Farm Payrolls. Buckle up!
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Prepared by Michael van Dulken, Head of Research