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| UK 100 Leaders | Close | Chg | % Chg | % YTD |
| Tullow Oil PLC | 1195 | 40 | 3.5 | -5.23 |
| Unilever PLC | 2526 | 75 | 3.1 | 6.76 |
| Marks & Spencer Group PLC | 379.1 | 9.4 | 2.5 | -0.84 |
| Petrofac Ltd | 1735 | 35 | 2.1 | 6.9 |
| Standard Chartered PLC | 1669.5 | 32.5 | 2 | 6.1 |
| Croda International PLC | 2358 | 41 | 1.8 | -0.76 |
| BP PLC | 463.25 | 7.8 | 1.7 | 9.05 |
| Intertek Group PLC | 3067 | 49 | 1.6 | -1.03 |
| UK 100 Laggards | Close | Chg | % Chg | % YTD |
| TUI Travel PLC | 278 | -14.1 | -4.8 | -1.59 |
| SSE PLC | 1382 | -53 | -3.7 | -2.54 |
| Standard Life PLC | 336.3 | -6.8 | -2 | 1.26 |
| Compass Group PLC | 746 | -13.5 | -1.8 | 2.9 |
| ITV PLC | 113.5 | -1.9 | -1.6 | 7.89 |
| Anglo American PLC | 1869 | -30.5 | -1.6 | -1.32 |
| International Consolidated Airlines Group SA | 208.3 | -3.3 | -1.6 | 12.72 |
| Lloyds Banking Group PLC | 52.02 | -0.8 | -1.5 | 8.57 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 6197.64 | 18.47 | 0.3 | 5.08 |
| UK | 12934.4 | -23.74 | -0.18 | 4.52 |
| FR CAC 40 | 3726.17 | -14.84 | -0.4 | 2.34 |
| DE DAX 30 | 7707.54 | 11.33 | 0.15 | 1.25 |
| US DJ Industrial Average 30 | 13779.2 | 67 | 0.49 | 5.15 |
| US Nasdaq Composite 100 | 3153.67 | 10.49 | 0.33 | 4.44 |
| US S&P 500 | 1494.78 | 2.22 | 0.15 | 4.81 |
| JP Nikkei 225 | 10620.87 | 133.88 | 1.28 | 2.17 |
| HK Hang Seng Index 48 | 23586.13 | -46.15 | -0.19 | 4.10 |
| AU S&P/ASX 200 | 4810.22 | 22.4 | 0.47 | 3.47 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, US Light Sweet ($/barrel) | 95.505 | 0.025 | 0.03 | 4.05 |
| Crude Oil, Brent ($/barrel) | 112.78 | 0.125 | 0.11 | 1.35 |
| Gold ($/oz) | 1679.95 | -4.55 | -0.27 | 0.26 |
| Silver ($/oz) | 31.9425 | -0.2825 | -0.88 | 5.28 |
| Platinum ($/oz) | 1687.2 | -1 | -0.06 | 9.27 |
| GBP/USD – US$ per £ | 1.5838 | – | 0.04 | -2.49 |
| EUR/USD – US$ per € | 1.3335 | – | 0.21 | 1.03 |
| GBP/EUR – € per £ | 1.1877 | – | -0.16 | -3.56 |
Click graph to enlarge
See Live Macro Calendar for full data line-up, incl. consensus expectations
UK 100 called to open flat, with darling of the market and tech giant Apple presenting a disappointing set of Q1 results – profits beat, but revenues and outlook suggest slowing growth (it couldn’t last forever) – which saw shares fall 10% in US after-hours trading.
The UK's flagship index futures are off its worst levels, however, after another improvement (more than expected) in China’s HSBC PMI Manufacturing to a 2yr high boosted hopes for economic growth rebound.
Japan’s economic weakness emphasised by another record trade deficit, supporting the need for stimulus. The JPY is weak again as a result, and ministerial comments that USD/JPY of 100 is not a problem have added to the pair’s rally, boosting the Nikkei.
Geopolitical tensions also back to the fore with Asian trading dented by North Korea’s sabre-rattling statement of intent to carry out a third nuclear test and more long range rocket launches targeted at the its ‘enemy’ the US, this following the US proposal of sanctions for the December test.
US markets closed higher (before Apple reported) on optimism following the House of Representatives (Republican controlled) passing the bill allowing for a temporary raising of the debt ceiling (3 months, May 19) and Senate (upper house, Democrat controlled) expected to follow suit, to allow Congress to work on the budget.
Markets also displaying optimism by largely ignoring IMF cuts to global growth forecasts, predicting another lost year of growth for the Eurozone. Lagarde said there are reasons to be optimistic on the region, despite it still facing serious issues.
In focus today will be the PMI Manufacturing and Services from Germany and the Eurozone where all but the German Services are expected to remain in contraction territory, however, all are expected to have made a small step back towards growth. In the afternoon, the update on US PMI Manufacturing is seen remaining in solid growth, but with a slight pull back from last month. The US leading indicator is, however, seen rebounding handsomely. Q4 results continue in the UK with names like Xerox, AT&T and Microsoft.
UK 100 futures made a lower high late yesterday, which opens the possibility of a trendline of falling resistance. Support at 6180 is a positive as is the regain of the 6200 level around which it traded yesterday, but early stages of a descending triangle pattern does put a question mark over whether the grind higher continues - Eurozone data a potential driver.
In FX, GBP/USD forming a base around 1.58 after better unemployment data offered support for Sterling, and despite PM Cameron’s risky in-out 2017 EU referendum pledge. Resistance still possible at 1.589? EUR/USD range tightening in from 1.325-1.34 to 1.325-1.335. Another descending triangle pattern? GBP/EUR still hanging around the 1.19 level. A pause before another leg down or March lows at 1.175 to kick in first?
In Commodities, Gold has come off its recent $1695 highs to levels of 5 days ago. In Oil, US Light Crude fell back last yesterday to retest $95/barrel. Support? Brent Crude remains in a rising trend, to test $113/barrel.
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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