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 Sky Broadcasting Group PLC | 695 | 6.5 | 0.9 | -5.12 |
| AMEC PLC | 1075 | 10 | 0.9 | 18.46 |
| WPP Group PLC | 793 | 7 | 0.9 | 17.39 |
| British Land Co PLC | 538 | 4.5 | 0.8 | 16.32 |
| Barclays PLC | 159 | 1.3 | 0.8 | -9.68 |
| Resolution Ltd | 219.9 | 1.6 | 0.7 | -12.53 |
| Diageo PLC | 1684 | 12 | 0.7 | 19.73 |
| BP PLC | 444 | 2.5 | 0.6 | -3.58 |
| UK 100 Laggards | Close | Chg | % Chg | % YTD |
| G4S PLC | 240 | -14.6 | -5.7 | -11.7 |
| Eurasian Natural Resources Corporation PLC | 387.4 | -15.5 | -3.8 | -39.04 |
| ARM Holdings PLC | 469 | -18.7 | -3.8 | -20.78 |
| International Consolidated Airlines Group SA | 154.8 | -5.2 | -3.2 | 5.02 |
| Admiral Group PLC | 1139 | -37 | -3.1 | 33.69 |
| National Grid PLC | 662 | -20.5 | -3 | 5.92 |
| Kazakhmys PLC | 707 | -20.5 | -2.8 | -23.73 |
| Randgold Resources Ltd | 5650 | -155 | -2.7 | -14.2 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK 100 | 5629.09 | -33.34 | -0.59 | 1.02 |
| 11019.2 | -56.06 | -0.51 | 9.07 | |
| CAC 40 | 3176.97 | -2.93 | -0.09 | 0.54 |
| DAX (Xetra) | 6577.64 | 11.92 | 0.18 | 11.52 |
| Dow Jones Industrial Average | 12805.5 | 78.29 | 0.62 | 4.81 |
| Nasdaq Comp. | 2910.04 | 13.1 | 0.45 | 11.7 |
| S&P 500 | 1363.67 | 10.03 | 0.74 | 8.43 |
| Nikkei 225 | 8726.74 | -28.26 | -0.32 | 3.21 |
| Hang Seng | 19156.65 | -298.68 | -1.54 | 3.92 |
| S&P/ASX 200 | 4123.6 | -17.2 | -0.42 | 1.65 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil Light Sweet Composite | 88.905 | 0.875 | 0.99 | -10.2 |
| Gold Composite | 1580.2 | 4.3 | 0.27 | 0.88 |
| Silver Composite | 27.1875 | 0.2325 | 0.86 | -2.12 |
| Palladium Composite | 582.95 | 5.75 | 1 | -11.24 |
| Platinum Composite | 1415.25 | 1.55 | 0.11 | 1.01 |
| GBP/USD – US $ per £ | 1.5643 | – | 0.34 | 0.73 |
| EUR/USD – US$ per Euro | 1.2283 | – | 0.53 | -5.18 |
| GBP/EUR – Euros per £ | 1.2734 | – | -0.16 | 6.13 |
Click graph to enlarge
UK 100 called to open +15pts, despite a negative session in Asia-Pacific markets, after US markets rallied into the close on US Federal Reserve (Fed) Chairman Bernanke’s testimony to congress (Day 1 of 2) and some pleasing US corporate results and macro data.
While Bernanke failed to announce more monetary stimulus (money printing/quantitative easing/QE) which saw markets initially sell off, the Chairman’s downbeat assessment of the economy (rates low for longer, unemployment stobborn, growth tough) and listing of help measures available continues to convince market participants that the Fed can only be getting closer to cranking up doing ‘something’ meaningful. This saw the fires of risk appetite rekindled and markets push higher.
Strong corporate earnings from the likes of Goldman Sachs, Coca Cola, J&J, along with better than expected US Housing (very strong rebound) and US Industrial Production data also helped keep the bias bullish into the US close.
Asia-Pacific in the red despite strong session by US indices with risk aversion being order of the day as hopes of QE3 (third round of QE by the Fed) failed to provide a boost. Even better than expected results from Yahoo and Intel after the US close failed to provide impetus.
Overnight data supportive of a weak Asia-Pacific session, with a slowing in Chinese property Prices and a confirmed strong contraction in Japanese Machine Tool orders. Saying that, the former should support hopes of more rate cuts by the Chinese central bank to help maintain strong growth which should be a net positive.
Focus today likely on UK Bank of England (BoE) minutes for information on how the panel voted on interest rates and QE programme. UK Unemployment seen stable at 8.2%. Eurozone Construction could provide idea of regional growth. US data centred on the good old sentiment indicator of Housing with an update on starts and permits in June. Portugal selling 6 and 12-month debt (still expensive) but Germany likely to be able to again sell 2-year paper at next to nothing.
US corporates reporting results before during today’s trading include industrial Honeywell, investment firm Blackrock, investment banks Bank of New York Mellon and Bank of America. After the market close IBM will update along with Amex and eBay.
In FX and commodities, Gold trading lower on the stronger dollar as Bernanke did not open the door to QE as much as hoped. The price of Oil (US Light Crude and Brent Crude) continues to benefit from geo-political factors with less impact from the USD. In FX, GBP/USD and EUR/USD back to where they were pre-Bernanke’s speech (although his testimony continues today which may keep the USD lively).
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