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| UK 100 Leaders | Close | Chg | % Chg | % YTD |
| BP PLC | 453.5 | 11.8 | 2.7 | 6.76 |
| Hargreaves Lansdown PLC | 721 | 17 | 2.4 | 5.87 |
| Burberry Group PLC | 1290 | 29 | 2.3 | 5.22 |
| Schroders PLC | 1802 | 39 | 2.2 | 6.88 |
| BT Group PLC | 242.8 | 4.5 | 1.9 | 5.06 |
| Experian PLC | 1033 | 18 | 1.8 | 5.41 |
| Vodafone Group PLC | 160.05 | 2.65 | 1.7 | 3.63 |
| Standard Life PLC | 352.1 | 5.7 | 1.6 | 6.02 |
| UK 100 Laggards | Close | Chg | % Chg | % YTD |
| Randgold Resources Ltd | 5975 | -255 | -4.1 | 0.42 |
| Fresnillo PLC | 1810 | -75 | -4 | -2 |
| Polymetal International PLC | 1174 | -45 | -3.7 | -0.09 |
| Marks & Spencer Group PLC | 376.4 | -12 | -3.1 | -1.54 |
| Antofagasta PLC | 1343 | -27 | -2 | 1.44 |
| Kazakhmys PLC | 811.5 | -14.5 | -1.8 | 4.31 |
| Rio Tinto PLC | 3613 | -45.5 | -1.2 | 2.89 |
| Johnson Matthey PLC | 2335 | -28 | -1.2 | -1.73 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 6089.84 | 42.5 | 0.7 | 3.26 |
| UK | 12694.9 | 43.65 | 0.35 | 2.59 |
| FR CAC 40 | 3730.02 | 8.85 | 0.24 | 2.44 |
| DE DAX 30 | 7776.37 | 19.93 | 0.26 | 2.15 |
| US DJ Industrial Average 30 | 13435.2 | 43.8 | 0.33 | 2.53 |
| US Nasdaq Composite 100 | 3101.66 | 1.09 | 0.04 | 2.72 |
| US S&P 500 | 1466.47 | 7.1 | 0.49 | 2.82 |
| JP Nikkei 225 | 10688.11 | 292.93 | 2.82 | 2.82 |
| HK Hang Seng Index 48 | 23331.09 | -67.51 | -0.29 | 2.98 |
| AU S&P/ASX 200 | 4723.78 | -16.9 | -0.36 | 1.61 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, US Light Sweet ($/barrel) | 92.845 | -0.345 | -0.37 | 1.15 |
| Crude Oil, Brent ($/barrel) | 111.07 | -0.235 | -0.21 | -0.18 |
| Gold ($/oz) | 1657.95 | 0.05 | 0 | -1.05 |
| Silver ($/oz) | 30.2525 | 0.0575 | 0.19 | -0.29 |
| Platinum ($/oz) | 1565.7 | 2.2 | 0.14 | 1.41 |
| GBP/USD – US$ per £ | 1.6054 | – | -0.08 | -1.16 |
| EUR/USD – US$ per € | 1.3053 | – | -0.09 | -1.11 |
| GBP/EUR – € per £ | 1.2299 | – | 0.07 | -0.14 |
Click graph to enlarge
See Live Macro Calendar for full data line-up, incl. consensus expectations
UK 100 called to open +10pts, after equities in Asia ebbed lower overnight, amid an uneventful session both news and macro-data wise. Financials did outperform, however, on Sunday news (headline on many financials newspapers) of a big softening in Basel III Banking rules.
Changes in the rules for the banking sector will see both a loosening of capital requirement rules (thanks to successful sector lobbying, some equities lower grade corporate bonds and even mortgage backed securities [MBS] can be included) and a delay in full enforcement (2019 vs. 2015).
The prospect of an end of QE by the US Federal Reserve (Fed) which rocked markets on Friday has propped up the USD up again after some brief weakness and scepticism following the weaker than expected US employment data on Friday (no improvement in unemployment rate post revisions means QE likely to continue).
In focus today, we have a sparse macro calendar to entertain us with just Eurozone Sentix Investor Confidence and Producer Price Index, with the former seen improving slightly but remaining well in negative territory and the Producer Price data showing a slowing in inflationary pressure from the prior month.
For the rest of the week, central bank updates will likely be non-events in terms of policy changes (interest rates, QE) from the Bank of England (BoE) and European Central Bank (ECB) on account of mixed economic data meaning a muddied picture on economic growth.
Data-wise, keep an eye on Germany’s updates on Industrial Production (it is a big exporter remember), which is seen improving in November after weakness in October. The UK’s figure (less important as UK more services oriented) improvements on weakness also forecast.
The UK 100 tried as highs at 6,107 late on Friday, matching highs of May 2011 and, as discussed, looks like it wants to trade higher. However, whether those highs prove a hurdle having been resistance for most of H1 2011 remains to be seen. Then again, if banks rules are deemed slacker and the sector can return to more activity this could help other industries and maintain risk appetite.
In FX, GBP/USD remains just off its Friday and December 1.601 lows on the back of safehaven seeking and the prospect of QE coming to an end in the US, having tried higher briefly on Friday. EUR/USD also back down near 1.30 lows of Friday which remains strong support technically. GBP/EUR remains under pressure from 6-month falling highs at 1.236. Support possible around 1.22.
In Commodities, Gold found resistance as USD reversed its post fiscal cliff and no-more-QE strengthening and then post-unemployment-data weakening on Friday. Resistance at $1660 although long candle wicks on two of last three days to both up and downside suggest uncertainty. Oils also off highs after Friday rally, with trend of falling resistance in formation.
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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.
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