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| UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Barclays PLC | 228.85 | 7.5 | 3.4 | 2.4 |
| Prudential PLC | 1600.5 | 48.0 | 3.1 | -1.7 |
| Mediclinic International PLC | 788.5 | 23.5 | 3.1 | 2.3 |
| Sainsbury (J) PLC | 264.8 | 7.0 | 2.7 | 6.2 |
| Royal Bank of Scotland Group (The) PLC | 228.5 | 6.0 | 2.7 | 1.7 |
| UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Glencore PLC | 309.5 | -15.5 | -4.8 | 11.6 |
| Rio Tinto PLC | 3390.5 | -124.5 | -3.5 | 7.4 |
| Anglo American PLC | 1332 | -45.5 | -3.3 | 14.8 |
| Antofagasta PLC | 813 | -27.5 | -3.3 | 20.4 |
| Dixons Carphone PLC | 304.6 | -8.9 | -2.8 | -14.1 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,188.3 | 47.6 | 0.67 | 0.1 |
| UK | 18,411.7 | 152.5 | 0.84 | 1.2 |
| FR CAC 40 | 4,825.4 | 31.1 | 0.65 | -0.3 |
| DE DAX 30 | 11,651.5 | 23.6 | 0.20 | -1.4 |
| US DJ Industrial Average 30 | 20,071.5 | 186.5 | 0.94 | -0.1 |
| US Nasdaq Composite | 5,666.8 | 30.6 | 0.54 | 0.1 |
| US S&P 500 | 2,297.4 | 16.6 | 0.73 | 0.1 |
| JP Nikkei 225 | 18,976.7 | 58.5 | 0.31 | -0.7 |
| HK Hang Seng Index 50 | 23,306.8 | 177.6 | 0.77 | 5.9 |
| AU S&P/ASX 200 | 5,615.6 | -6.0 | -0.11 | -0.9 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 54.08 | 0.20 | 0.36 | 1.7 |
| Crude Oil, Brent ($/barrel) | 57.08 | 0.12 | 0.21 | 2.9 |
| Gold ($/oz) | 1225.35 | 3.75 | 0.31 | 2.9 |
| Silver ($/oz) | 17.58 | 0.06 | 0.33 | 2.5 |
| GBP/USD – US$ per £ | 1.2491 | 0.0000 | 0.04 | -0.5 |
| EUR/USD – US$ per € | 1.0770 | 0.0000 | -0.12 | 0.7 |
| GBP/EUR – € per £ | 1.1599 | 0.0000 | 0.16 | -1.1 |
Click graph to enlarge
UK 100 Index called to open +10pts at 7200, with a rebound from 7180 overnight support maintaining Thursday’s uptrend and rebound from 7090. Sideways 7180-7200 since Friday's close keeps bulls optimistic of this being a pause before another break higher, but they will want to see 7205 first. Bears need a breach of 7180 overnight lows. Watch levels: Bullish 7205, Bearish 7180.
Calls for a positive open come after Asian bourses took the baton from a solid US advance on Friday with a mixed US jobs report (still adding plenty of jobs, but unemployment ticked up and wage growth slowed) unlikely to fluster the Fed about being behind the curve in terms of policy tightening while President Trump is still signing executive orders left right and centre.
On the flip side, gains are muted on account of a slowing in China Caixin PMI (Services + Composite) fueling fresh debate about the state of the Chinese economy helping the USD rebound overnight. This has seen Australia’s ASX (China is its biggest trading partner) underperform overnight as metals prices put in a mixed performance and banks give up early gains linked to hopes of a Dodd Frank reversal. Japan’s Nikkei benefits from an overnight Dollar rebound and thus weaker Yen.
US equity markets finished the week on a positive note, as executive orders signed by President Trump to begin the process of repealing US financial regulation saw the sector outperform. The Dow Jones closed the week above 20,000 with Goldman Sachs once again leading the index to a 0.9% gain, while the S&P 500 gained 0.7% to close 1 point away from a fresh record high and the Nasdaq finished +0.5%.
Crude Oil prices have steadily rallied overnight, continuing a recovery from last week’s lows, as expectations that the new US administration’s Iran sanctions could extend to affect the country’s crude production capacity keep investors bullish, although yet another increase in the Baker Hughes Rig count on Friday has kept a lid on prices (Brent $57.40, US $54.30) as expanding US production concerns weigh.
Continuing US Dollar weakness is helping to keep Gold’s uptrend alive having testing rising lows support on Friday, however the precious metal has so far been unable to overcome Thursday’s $1225 highs in Asian trading hours. With a lack of US macro data today, further Dollar weakness could help the bulls to break through resistance.
In focus today, amid a light macro data line-up, will be Eurozone PMI Retail (9am) given its intricate link to consumer confidence, although consensus figures are lacking for all major components (Italy, France, Germany) and the Eurozone region as a whole. Thereafter, Eurozone Sentix Investor Confidence (9.30am) expected to have dropped back from 18.2 to 16.8 in February
Speakers today include ECB President Draghi speaks to Parliament in Brussels at 2pm followed by the Fed’s Harker at 9.30pm discussing FinTech opportunities at 9.30pm.
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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