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| UK 100 Leaders | Close | Chg | % Chg | % YTD |
| Fresnillo PLC | 1487 | 58 | 4.1 | -2.62 |
| ICAP PLC | 354.1 | 7.6 | 2.2 | 2.08 |
| Randgold Resources Ltd | 5885 | 120 | 2.1 | -10.63 |
| SSE PLC | 1388 | 28 | 2.1 | 7.51 |
| Anglo American PLC | 2131.5 | 35.5 | 1.7 | -10.4 |
| Lloyds Banking Group PLC | 29.63 | 0.475 | 1.6 | 14.38 |
| Antofagasta PLC | 1070 | 17 | 1.6 | -11.93 |
| ARM Holdings PLC | 512 | 8 | 1.6 | -13.51 |
| UK 100 Laggards | Close | Chg | % Chg | % YTD |
| Xstrata PLC | 920 | -50 | -5.2 | -5.93 |
| Man Group PLC | 72 | -2.5 | -3.4 | -42.72 |
| Glencore International PLC | 355 | -11.85 | -3.2 | -9.44 |
| IMI PLC | 844.5 | -25 | -2.9 | 11.12 |
| Sainsbury (J) PLC | 283.5 | -7.6 | -2.6 | -6.4 |
| Vedanta Resources PLC | 915.5 | -24 | -2.6 | -9.8 |
| Aggreko PLC | 2177 | -52 | -2.3 | 7.93 |
| Evraz PLC | 260.5 | -6.2 | -2.3 | -30.48 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK 100 | 5483.81 | 10.07 | 0.18 | -1.59 |
| 10538.6 | -22.56 | -0.21 | 4.31 | |
| CAC 40 | 3030.04 | -16.87 | -0.55 | -4.11 |
| DAX (Xetra) | 6152.49 | -8.75 | -0.14 | 4.31 |
| Dow Jones Industrial Average | 12496.4 | -77.4 | -0.62 | 2.28 |
| Nasdaq Comp. | 2818.6 | -24.46 | -0.86 | 8.19 |
| S&P 500 | 1314.88 | -9.3 | -0.7 | 4.55 |
| Nikkei 225 | 8587.84 | 51.12 | 0.6 | 1.57 |
| Hang Seng | 18949.7 | 77.14 | 0.41 | 2.79 |
| S&P/ASX 200 | 4063.8 | -9.08 | -0.22 | 0.18 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil Light Sweet Composite | 82.675 | 0.125 | 0.15 | -16.49 |
| Gold Composite | 1621.15 | 3.35 | 0.21 | 3.5 |
| Silver Composite | 28.9075 | 0.1125 | 0.39 | 4.08 |
| Palladium Composite | 623.575 | 5.375 | 0.87 | -5.06 |
| Platinum Composite | 1480.95 | 20.35 | 1.39 | 5.7 |
| GBP/USD – US $ per £ | 1.5504 | – | -0.1 | -0.17 |
| EUR/USD – US$ per Euro | 1.2572 | – | -0.02 | -2.95 |
| GBP/EUR – Euros per £ | 1.2332 | – | -0.06 | 2.78 |
Click graph to enlarge
UK 100 called to open -20pts after US markets closed lower on a mix of anxiety ahead of Sunday’s Greek election, softer US macro data, and ratings agencies getting vocal. US data showed a slowdown in both Producer Prices and Retail Sales in May which led to a host of institutions cutting their estimates for US GDP in the second quarter (Q2). Investors remain worried about the potential fallout from leftist party Syriza winning and reneging on Greece’s bailout agreement, with contagion to the troubled Spain and Italy a real concern.
Overnight, Asia-Pacific markets followed the US lead, in retreat amid persistent Eurozone overhang notably after Spanish downgrades and Italy having to pay above very high rates for 12 month borrowing – a sign of the stress on Club–Med before Greece decides (or not!) on a new ruling party while Spain’s bailout continues to get cold water poured on it. In fact even German bond yields recovered as the prospect of German suffering either from a Eurozone break-up or a higher burden form obligations to rescue weigh on investors safehaven mind. Heads I win, Tails you lose.
Ratings agencies still trying to prove their worth and earn a crust, with a downgrade downgrade of Spain’s sovereign debt rating by Eagan Jones, peer Fitch increasing its calculations of Spain’s banking sector requirements, and Moody’s which downgraded Spain by 3 notches (higher debt burden after call to help banks) and warned it could be cut to Junk status within three months.
Macro data since US close saw inflation expectations fall in Australia (less chance of a rate hike, normally negative for Aussie Dollar, AUD). In Japan, Capacity Use and Industrial Production growth fell in April. German Wholesale Prices this morning have seen a sharp pull back in May, a negative for the backbone of Europe which sells heavily to Asia and the rest of Europe.
Looking to FX and commodities, USD a touch stronger on safehaven seeking away from Eurozone’s woes. GBP and EUR thus pared prior gains. Gold continued to find resistance around $1625/oz level and 4-month falling resistance trendline a hurdle. Brent Crude under pressure on account of stronger USD, testing back towards $96/barrel. US Light Crude in ever tighter range around $83/barrel. Watch OPEC meeting for any news on supply.
Macro data in focus today will be European Consumer Inflation and Labour costs, along with US Consumer Inflation and US Jobless. US consumer inflation of interest for potential impact it could have on monetary policy (more easing or not next week?) by the US Federal Reserve (Fed). After Italy’s expensive 12-month debt auction yesterday, today’s longer-term (3, 7 & 9yr) auction will provide even more important signals as to market confidence in the country and of the chance of contagion from a Greek exit from the single currency bloc or a Spanish banking collapse. The yield is rue to be worse than last time, but how much, and what will the demand look like?
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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