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Morning Report

UK 100 Leaders Close Chg % Chg % YTD
Vodafone Group PLC 236.5 6.9 3.0 65.04
BAE Systems PLC 411.3 10.9 2.7 13.93
ARM Holdings PLC 970 23 2.4 428.3
Persimmon PLC 1464 27 1.9 217.1
RSA Insurance Group PLC 101.2 1.6 1.6 -15.46
G4S PLC 236.7 3.3 1.4 -11.41
Petrofac Ltd 1379 19 1.4 33.11
Wolseley PLC 3360 43 1.3 150.7
UK 100 Laggards Close Chg % Chg % YTD
Coca-Cola HBC AG 1550 -45 -2.82 0
InterContinental Hotels Group PLC 1925 -50 -2.53 112.8
IMI PLC 1526 -39 -2.49 148.2
ITV PLC 204.2 -3.6 -1.73 267.6
Rolls-Royce Group PLC 995 -15 -1.49 102.6
Royal Mail Group PLC 600 -9 -1.48 0
Kingfisher PLC 392.5 -5.4 -1.36 66.03
Smiths Group PLC 1373 -17 -1.22 28.44
Major World Indices Mid/Close Chg % Chg % YTD
UK UK 100 6,838.06 25.07 0.37 8.07
UK 16,461.00 92.07 0.56 21.93
FR CAC 40 4,381.06 25.57 0.59 19.39
DE DAX 30 9,656.95 38.10 0.4 26.55
US DJ Industrial Average 30 16,103.30 -29.93 -0.19 15.24
US Nasdaq Composite 100 4,263.40 -4.13 -0.1 33.29
US S&P 500 1,836.25 -3.53 -0.19 20.70
JP Nikkei 225 14,837.68 -27.99 -0.19 -8.92
HK Hang Seng Index 48 22,314.10 -254.14 -1.13 -4.26
AU S&P/ASX 200 5,440.22 1.52 0.03 1.64
Commodities & FX Mid/Close Chg % Chg % YTD
Crude Oil, US Light Sweet ($/barrel) 102.505 0.205 0.2 5.31
Crude Oil, Brent ($/barrel) 110.075 0.35 0.32 -6.74
Gold ($/oz) 1327.85 1.85 0.14 -18.8
Silver ($/oz) 21.765 -0.07 -0.32 -28.45
Platinum ($/oz) 1428.55 -1.15 -0.08 -16.67
GBP/USD – US$ per £ 1.6645 0.17 7.49
EUR/USD – US$ per € 1.374 0.01 2.93
GBP/EUR – € per £ 1.2114 0.16 4.44
UK 100 called to open 25 points lower

Click graph to enlarge

Today's Main Events

  • 09:00     EU          German IFO
  • 10:00     EU          CPI
  • 13:30     US          Fed National Activity Index

See Live Macro Calendar for full data line-up, incl. consensus expectations

Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

UK 100 called to open -25 at 6815 taking a lead from Asian markets overnight. The catalyst for this wave of negativity was the Chinese property sector, and in particular reports banks may reining in lending to developers. China’s average new home prices in 70 major cities rose 9.6% on the in January, slightly lower than +9.9% on the year in December as the red-hot property market has stabilized after 11th straight month of year on year increases. China’s Hang Seng was down 254 points at 22,314 whilst Japan’s Nikkei was off 28 points at 14,837.

On Friday, US markets were a little subdued, with the Dow Jones closing down 29 points at 16,103 whilst the S&P was down 3.5 points at 1,836.

Results today: Bunzl (BNZL.L) FY revenue up 12% to £6.1bn, Pretax profit £372.2m vs. £237m expected, Total dividend up 15% to 32.4p p/sh. Bovis Homes (BVS.L) FY pretax profit up 48% to £78.8m, revenue up 31% to £556m, final dividend 9.5p, operating margin increased to 14.9%, states housing market is recovering with higher activity levels and improving house prices. HSBC (HSBA.L) To report after 9:00am. Associated British Foods (ABF.L) Maintains FY earnings expectations after strong performance from its Primark division. EPS to be similar to the 98.9p made in 2012/2013. Profit to be in line with last year.

In focus today macro data-wise will be German IFO data due at 9am this morning as well as Eurozone CPI data at 10am. Later in the week, we have some big corporate earnings with the likes of ITV, Travis Perkins, Royal Bank of Scotland, Standard Life, Rightmove as well as the main UK house builders delivering results.

The UK 100 seems to have calmed a little after a strong performance last week (up 2.5%), currently around 50 points off one-week highs. The one month upward trend remains intact however looking at the three-month chart, it appears that a double-top formation has been formed around the 6860 level. A break of these levels could well see us heading towards all-time highs on the UK Index . On the downside, support is now formed around 6750, 6730 and 6700.

In commodities, gold pushed higher just off recent highs touching $1328 which capped off a third weekly gain. With weak macro data from the US last week, deadly protest in Ukraine and increased demand from China, gold is set for a second consecutive month of rises. However having failed at recent highs of $1330 we could continue to see gold find resistance here. This week traders will keep a keen eye on US durable goods, consumer confidence and revised growth data. WTI rebounded from lowest levels in a week amid speculation that the cold weather spell will increase demand. Back above $102 on increased volume we will see resistance at $103 once again.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – all part of the service.

Overnight Macro Data: (Source: Reuters/DJ Newswires)

  • NZ        Credit Card Spending  IN-LINE

See Live Macro calendar for all details

UK Company Headlines: (Source: Reuters/DJ Newswires)

  • Rolls Royce wins $90.1M engine contract for US Marine Corp MV-22 aircraft
  • Bunzl on track to deliver good growth in 2014
  • Bovis Homes full year profits rise 48 percent
  • Kingspan 2013 profit after tax rises 19 percent
  • Providence says plan to commence 3D seismic acquisition programme over Drombeg
  • Gulf Keystone expects to move to main list on Mar. 24
  • Vodafone says share consolidation effective
  • RSA Insurance says considering raising capital through rights issue
  • President Energy raises $50.8 mln in placing and open offer
  • Essar Energy independent committee says possible offer by EGFL undervalues co
  • Hiscox says full-year pretax profit rises to 244.5 mln stg
  • Dialight full-year pretax profit falls to 11.2 mln pound
  • AB Foods maintains year guidance
  • Mothercare says CEO to step down at end March

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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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