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 |
| Randgold Resources | 6415 | 295.0 | 4.8 | 54.8 |
| Fresnillo | 1224 | 54.0 | 4.6 | 72.9 |
| Hikma Pharmaceuticals | 1857 | 35.0 | 1.9 | -19.3 |
| United Utilities | 907.5 | 13.5 | 1.5 | -3.0 |
| Old Mutual | 204.7 | 2.8 | 1.4 | 14.4 |
| UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Ashtead | 1572 | -37.0 | -2.3 | 40.5 |
| Smiths Group | 1411 | -24.0 | -1.7 | 50.2 |
| Antofagasta | 676.5 | -9.0 | -1.3 | 44.2 |
| Rolls-Royce | 678 | -8.5 | -1.2 | 17.9 |
| Lloyds Banking | 62.78 | -0.8 | -1.2 | -14.1 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,120.3 | 14.2 | 0.20 | 14.1 |
| UK | 18,029.5 | 16.7 | 0.09 | 3.4 |
| FR CAC 40 | 4,838.5 | -9.5 | -0.20 | 4.3 |
| DE DAX 30 | 11,451.0 | -24.0 | -0.21 | 6.6 |
| US DJ Industrial Average 30 | 19,819.8 | -14.0 | -0.07 | 13.7 |
| US Nasdaq Composite | 5,432.1 | -6.5 | -0.12 | 8.5 |
| US S&P 500 | 2,249.3 | -0.7 | -0.03 | 10.1 |
| JP Nikkei 225 | 19,114.4 | -30.8 | -0.16 | 0.4 |
| HK Hang Seng Index 50 | 21,998.2 | 207.3 | 0.95 | 0.4 |
| AU S&P/ASX 200 | 5,665.8 | -33.3 | -0.58 | 7.0 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 54.00 | 0.18 | 0.33 | 45.7 |
| Crude Oil, Brent ($/barrel) | 57.16 | 0.99 | 1.76 | 52.0 |
| Gold ($/oz) | 1160.95 | -0.25 | -0.02 | 9.5 |
| Silver ($/oz) | 16.24 | -0.02 | -0.11 | 17.5 |
| GBP/USD – US$ per £ | 1.2275 | -0.0213 | -0.07 | -16.7 |
| EUR/USD – US$ per € | 1.0525 | 0.0074 | -0.39 | -3.1 |
| GBP/EUR – € per £ | 1.1662 | -0.0288 | 0.29 | -14.1 |
Click graph to enlarge
UK 100 Index called to open -5pts at 7115, only margin weakness thanks to a full rebound of the sell-off that followed yesterday’s second consecutive record closing high (7120). Note resistance-turned-support building around 7110 which keeps us above 7100 and maintains the rising channel since mid-month which bodes well for further upside (another record today?). Bulls want to see overnight highs of 7123 bettered to inspire hopes that record intraday (7130) and out-of-hours highs (7135) can be challenged. Bears need to see current support at 7110 give way. Watch levels: Bullish 7125, Bearish 7090.
Calls for a flat open come after a slightly negative US close and a mixed bag in Asia as fresh geopolitical fun and games take centre stage with Obama taking a final swipe at Russia before he leaves office.
A rebound in oil prices after yesterday’s US stockpile build is helping Energy with barrel prices for US Crude and Brent holding close to recent highs. However, there may be some reticence to take on additional risk on this final session of the year given the strong run that equity markets have had and the myriad political hurdles we face in 2017.
Japan’s Nikkei is in the red as a weaker US Dollar hinders exporters via reciprocal Yen strength. Australia’s ASX is hampered by industrial metals failing to keep up with their precious metal counterparts, this despite a weaker greenback currency and oil holding up well.
US markets gave up a little ground last night as the post-election rally stalled amid thin year-end volumes putting the Dow Jones on course for its first down week since a Trump inspired rally began in mid-November. Fresh demand for income stocks offset a cooling interest for Financials as investors struggled for catalysts and looked to January’s presidential inauguration.
Gold’s rebound continues with gusto, the $1150 resistance level we highlighted yesterday having been overcome, allowing for a test of $1160 overnight driven not by safe haven demand as equities hold close to highs but with a weaker US Dollar making the commodity cheaper to purchase.
In focus today will be provisional December Consumer Price Inflation (CPI) from Spain with expectations for a continued slowdown in the monthly rate (almost back to flat) but a welcome acceleration in the annual pace from a two month plateau. Producer Price Inflation (PPI) for Italy in November will be looked to for continued improvement and possibly even an exit from deflation after at least 12-months of negative pricing pressure.
In the afternoon, the Chicago PMI is forecast to tick back from November’s 12-month high. To close the year, this evening’s Baker Hughes Rig Count will let us know whether US land-based drillers are still increasing activity thanks to higher oil prices, potentially increasing global output while OPEC tries to curb production to buoy prices after the great oil price sell-off.
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