Today's Main Events
- 9:30 UK BoE Minutes
- 10:00 EZ Construction Output
- 10:30 DE/PL Debt sales
- 13:30 US Housing Starts & Building Permits
- 15:00 US Existing Home Sales
See Live Macro Calendar for all data, incl. consensus expectations
This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
UK 100 Leaders | Close | Chg | % Chg | % YTD |
British American Tobacco PLC | 3243 | 89 | 2.8 | 6.14 |
United Utilities Group PLC | 707.5 | 19 | 2.8 | 16.75 |
Diageo PLC | 1718 | 34.5 | 2 | 22.15 |
Imperial Tobacco Group PLC | 2362 | 44 | 1.9 | -3 |
Bunzl PLC | 1103 | 15 | 1.4 | 24.77 |
Reckitt Benckiser Group PLC | 3627 | 47 | 1.3 | 14.06 |
Severn Trent PLC | 1708 | 18 | 1.1 | 14.17 |
Vodafone Group PLC | 175.4 | 1.75 | 1 | -1.96 |
UK 100 Laggards | Close | Chg | % Chg | % YTD |
Aviva PLC | 344.9 | -14.3 | -4 | 14.66 |
GKN PLC | 228.3 | -8.6 | -3.6 | 24.75 |
ICAP PLC | 338.1 | -12.2 | -3.5 | -2.54 |
IMI PLC | 931.5 | -30.5 | -3.2 | 22.57 |
BP PLC | 438.95 | -12.55 | -2.8 | -4.68 |
Royal Bank of Scotland Group (The) PLC | 267.1 | -7.3 | -2.7 | 32.36 |
Lloyds Banking Group PLC | 38.855 | -0.995 | -2.5 | 49.99 |
Kazakhmys PLC | 742 | -18.5 | -2.4 | -19.96 |
Major World Indices | Mid/Close | Chg | % Chg | % YTD |
UK 100 | 5868.16 | -25.36 | -0.43 | 5.31 |
11933.7 | -147.18 | -1.22 | 18.12 | |
CAC 40 | 3512.69 | -41 | -1.15 | 11.17 |
DAX (Xetra) | 7347.69 | -56 | -0.76 | 24.57 |
Dow Jones Industrial Average | 13564.6 | 11.5 | 0.08 | 11.03 |
Nasdaq Comp. | 3177.8 | -0.87 | -0.03 | 21.98 |
S&P 500 | 1459.32 | -1.87 | -0.13 | 16.04 |
Nikkei 225 | 9232.21 | 108.44 | 1.19 | 9.19 |
Hong Kong Hang Seng Index | 20832.72 | 230.79 | 1.12 | 13.01 |
S&P/ASX 200 | 4418.4 | 23.67 | 0.54 | 8.92 |
Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
Crude Oil Light Sweet Composite | 95.93 | 0.4 | 0.42 | -3.1 |
Gold Composite | 1778.15 | 6.15 | 0.35 | 13.52 |
Silver Composite | 34.8875 | 0.1375 | 0.4 | 25.61 |
Palladium Composite | 674.875 | 6.875 | 1.03 | 2.75 |
Platinum Composite | 1639.75 | 10.15 | 0.62 | 17.03 |
GBP/USD – US $ per £ | 1.6257 | – | 0.08 | 4.68 |
EUR/USD – US$ per Euro | 1.3074 | – | 0.21 | 0.93 |
GBP/EUR – Euros per £ | 1.2435 | – | -0.12 | 3.64 |
See Live Macro Calendar for all data, incl. consensus expectations
UK 100 called to open +5pts, with risk appetite in Asian markets benefiting from the Bank of Japan’s (BoJ) announcement that it too was easing monetary policy, with a more aggressive than expected additional ¥10tn (~$127bn) in asset purchases to counter the slowing Japanese economy, taking the total to ¥80tn (~$1,016bn).
With the European Central Bank (ECB) and US Federal Reserve (Fed) having already acted the way markets had hoped, and markets having begun to ease back following their anticipatory and knee-jerk rally, this overnight move may serve to rekindle bullish sentiment with expectations that others follow suit in a move akin to coordinated central bank intervention China? You ready?
US markets posted another quiet session yet closed near 2-day highs, thanks to positive macro data including a narrowing of the current account deficit and consensus beating NAHB housing market index (six-year high). This helped the greenback recover slightly against the euro, but overnight things have reversed.
While we are still waiting for Spain to ask for help, and eurozone uncertainty remaining, note that King Juan Carlos has published an open letter to Spaniards asking for unity in the face of austerity, sending the strongest signal yet that the Iberian nation’s PM Rajoy is set to request a bailout. Then again, a look at the interest rates it paid on the 12 and 18-month paper the sovereign sold yesterday (improved yields, solid demand) explain his reluctance, with Draghi’s pledge having helped already.
Overnight, macro data shows an improvement in Japanese leading indices, however, the figure we had been waiting for yesterday was the update on Chinese Foreign Direct Investment (FDI) which although still in contraction, was not half as weak as weak as expected suggesting the shunning of the slowing powerhouse, reinforcing calls for stimulus, has eased.
Today, watch out for Bank of England (BoE) Minutes for information on latest Monetary Policy Committee (MPC) meeting, which will show the balance of views on further stimulus. Most do not expect easing further easing until November, which combined with the Fed recent action could see GBP/USD push higher. The several dumps of US Housing data will be important for any signs of improved confidence in the nation, especially after the strong NAHB figure of yesterday. We also have debt sales at both ends of the Eurozone debt crisis spectrum with Germany and Portugal selling short term (6-month to 2yr) paper.
In Commodities, the yellow metal Gold is back at last week’s 6-month highs, with the USD having weakened back again versus GBP and EUR overnight. Silver doing the same. In Oil after the spike down of late, prices have stabilised around this new level likely assisted by reports (FT) that Saudi Arabia has offered its main customers in the US, Europe and Asia extra oil supply through to the end of the year, worried about the effect of rising prices on the global economy.
In the FX arena, GBP/USD trading flat back around post-QE3 highs of 1.626, and EUR/USD has reversed yesterday’s correction on a combination of expectations that Spain could be closer to asking for ECB help and US treasury bonds being shunned following a raft of more attractively yielding corporate bond issuance. After Japan’s overnight move, USD/JPY has maintained its 4-day rally, and recovered to levels last seen on 22 Aug.
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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