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| UK 100 Leaders | Close | Chg | % Chg | % YTD |
| Randgold Resources Ltd | 7615 | 200 | 2.7 | 15.64 |
| Aviva PLC | 341.6 | 4.4 | 1.3 | 13.56 |
| Fresnillo PLC | 1916 | 24 | 1.3 | 25.47 |
| Imperial Tobacco Group PLC | 2310 | 24 | 1 | -5.13 |
| Associated British Foods PLC | 1373 | 12 | 0.9 | 24.03 |
| Lloyds Banking Group PLC | 40.815 | 0.325 | 0.8 | 57.56 |
| British American Tobacco PLC | 3216 | 25.5 | 0.8 | 5.25 |
| Capita Group (The) PLC | 734 | 5.5 | 0.8 | 16.79 |
| UK 100 Laggards | Close | Chg | % Chg | % YTD |
| Aggreko PLC | 2073 | -64 | -3 | 2.78 |
| Wolseley PLC | 2661 | -68 | -2.5 | 24.81 |
| Petrofac Ltd | 1578 | -37 | -2.3 | 9.51 |
| Experian PLC | 1047 | -24 | -2.2 | 19.59 |
| Johnson Matthey PLC | 2280 | -49 | -2.1 | 18.54 |
| Shire PLC | 1822 | -33 | -1.8 | -18.77 |
| John Wood Group PLC | 860.5 | -15 | -1.7 | 34.24 |
| BP PLC | 443.45 | -6.95 | -1.5 | -3.7 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 5882.9 | -13.24 | -0.22 | 5.57 |
| UK | 12040 | -34.3 | -0.28 | 19.17 |
| FR CAC 40 | 3483.25 | -21.31 | -0.61 | 10.24 |
| DE DAX 30 | 7328.05 | -52.59 | -0.71 | 24.24 |
| US DJ Industrial Average 30 | 13345.9 | 2.39 | 0.02 | 9.24 |
| US Nasdaq Composite 100 | 3016.96 | 11.34 | 0.38 | 15.81 |
| US S&P 500 | 1433.8 | 0.62 | 0.04 | 14.01 |
| JP Nikkei 225 | 9014.25 | 3.54 | 0.04 | 6.61 |
| HK Hang Seng Index 48 | 21697.55 | 145.79 | 0.68 | 17.70 |
| AU S&P/ASX 200 | 4543.07 | 2.07 | 0.05 | 11.99 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, US Light Sweet ($/barrel) | 88.795 | -0.445 | -0.5 | -10.31 |
| Crude Oil, Brent ($/barrel) | 109.455 | -0.695 | -0.63 | 1.92 |
| Gold ($/oz) | 1724.65 | -4.35 | -0.25 | 10.1 |
| Silver ($/oz) | 32.2175 | -0.1925 | -0.59 | 15.99 |
| Platinum ($/oz) | 1606.5 | -9.1 | -0.56 | 14.66 |
| GBP/USD – US$ per £ | 1.6014 | – | -0.06 | 3.12 |
| EUR/USD – US$ per € | 1.3047 | – | -0.18 | 0.72 |
| GBP/EUR – € per £ | 1.2274 | – | 0.14 | 2.3 |
Click graph to enlarge
See Live Macro Calendar for all data, incl. consensus expectations
UK 100 called to open +10pts, with Asian markets positive (Hong Kong closed) and the Japanese Nikkei aiming for a seven day positive streak. Although note that this positive open is still after a sell-off from the key 5930 level yesterday (long term falling resistance). A positive lead was taken from the US as equities stateside rallied into the close despite a dearth of macro-economic data and a profits warning from industrial barometer/economic bellwether Caterpillar.
After the US close, Yahoo’s new CEO published a reassuring set of better than expected Q3 results, leading some to wonder whether things are finally improving for the troubled internet company. Note however that Texas Instruments following Caterpillar by slashing Q4 guidance, adding to the poor guidance provided by the tech sector so far.
Overnight, Moody’s has downgraded five more Spanish regions citing limited cash reserves and difficulty dealing with debts, this after its reiteration of the nation’s investment grade status last week. This followed other news on Europe during the day including German lawmaker expecting Greece to be granted extension of its aid programme, with revised conditions and continued offsetting comments on the European Stability Mechanism (ESM), and the proposed banking recapitalisation and banking union.
During Asian trading talk continues on stimulus from the Bank of Japan (BoJ), however, this was denied by the finance minister which undid the gains that equities had posted. The US presidential debate saw Obama take an aggressive stance again and suggestions are that he prevailed. A research note from S&P note also suggests that the Volker banking rules could wipe $10bn pre-tax earnings of the 8 largest US financials.
This morning we have seen ARM Holdings post results which look to beat at the revenues and pre-tax profits level. As expected, profits rose on demand for technology gadgets. We have also heard that French Business Confidence collapse. Results out from Whitbread look to have beaten consensus expectations.
In FX, GBP/USD flat since the UK equity market close. EUR/USD weakened overnight. This morning, GBP/EUR ticker up from recent lows. USD/JPY maintains uptrend. In commodities, Gold remains under pressure via strengthen USD. Likewise for US Crude Oil which is back down sub-$90, near early October $88 lows. Brent Crude also weaker, but looks to have more support at $109, still well above early October lows of $107.
With another quiet macro line-up, traders will likely remain focused on US earnings especially given the mix of beats and disappointments that we have seen. Today’s reporting includes DuPont, Whirlpool, Coach, Xerox, and global demand barometer UPS.
Data-wise, we have UK home loan applications along with Eurozone Consumer Confidence and the US Richmond Fed Manufacturing Index. We also have Spain selling 3 and 6-month debt which we don’t envisage posing a problems given the improvement in its market implied borrowing costs.
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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