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| UK 100 Leaders | Close | Chg | % Chg | % YTD |
| United Utilities Group PLC | 698 | 7.5 | 1.1 | 15.18 |
| Rexam PLC | 442.1 | 2.6 | 0.6 | 25.31 |
| British Sky Broadcasting Group PLC | 697.5 | 4 | 0.6 | -4.78 |
| ARM Holdings PLC | 494.4 | 2.8 | 0.6 | -16.49 |
| IMI PLC | 811.5 | 4 | 0.5 | 6.78 |
| Weir Group PLC | 1531 | 6 | 0.4 | -24.66 |
| Admiral Group PLC | 1171 | 2 | 0.2 | 37.44 |
| Imperial Tobacco Group PLC | 2513 | 4 | 0.2 | 3.2 |
| UK 100 Laggards | Close | Chg | % Chg | % YTD |
| Evraz PLC | 234.4 | -16 | -6.4 | -37.44 |
| Resolution Ltd | 215.5 | -12.4 | -5.4 | -14.28 |
| Royal Bank of Scotland Group (The) PLC | 204.7 | -7.6 | -3.6 | 1.44 |
| International Consolidated Airlines Group SA | 154.8 | -5.3 | -3.3 | 5.02 |
| Barclays PLC | 159.25 | -5 | -3 | -9.54 |
| Aberdeen Asset Management PLC | 251.2 | -7.7 | -3 | 18.49 |
| Rio Tinto PLC | 2891.5 | -88.5 | -3 | -7.47 |
| HSBC Holdings PLC | 533.2 | -16.2 | -2.9 | 8.58 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK 100 | 5651.77 | -62.42 | -1.09 | 1.43 |
| 11168.8 | -73.7 | -0.66 | 10.55 | |
| CAC 40 | 3193.89 | -69.75 | -2.14 | 1.08 |
| DAX (Xetra) | 6630.02 | -128.37 | -1.9 | 12.4 |
| Dow Jones Industrial Average | 12822.6 | -120.76 | -0.93 | 4.95 |
| Nasdaq Comp. | 2925.3 | -40.6 | -1.37 | 12.29 |
| S&P 500 | 1362.66 | -13.85 | -1.01 | 8.35 |
| Nikkei 225 | 8508.32 | -161.55 | -1.86 | 0.63 |
| Hang Seng | 19140.21 | -500.59 | -2.55 | 3.83 |
| S&P/ASX 200 | 4128.9 | -70.22 | -1.67 | 1.78 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil Light Sweet Composite | 89.87 | -1.7 | -1.86 | -9.22 |
| Gold Composite | 1574 | -10.1 | -0.64 | 0.49 |
| Silver Composite | 26.9475 | -0.3225 | -1.18 | -2.98 |
| Palladium Composite | 572.125 | -3.375 | -0.59 | -12.89 |
| Platinum Composite | 1396.45 | -20.25 | -1.43 | -0.33 |
| GBP/USD – US $ per £ | 1.5566 | – | -0.3 | 0.23 |
| EUR/USD – US$ per Euro | 1.2088 | – | -0.52 | -6.69 |
| GBP/EUR – Euros per £ | 1.2878 | – | 0.26 | 7.33 |
Click graph to enlarge
UK 100 called to open -50pts, with Asian shares starting the week in the red as Spain sparks fears over its ability to fend off the need for a bailout of the sovereign after 2 regions (Valencia and Murcia) requested financial assistance and worries that others may be waiting in the wings to follow suit. The government also cut its growth forecasts for next year.
This resembles the recent request by Sicily for help from Rome and highlights the risks which could stem from the two of Europe’s biggest economies. It also highlights why both Monti and Rajoy were so jubilant (short-lived) after the last Brussels summit on getting peers to allow government bond buying and direct bank recapitalisation as they battle austerity and economic troubles.
Safehaven seeking in the US Dollar (USD) has seen commodities prices for Oil (both US Crude and Brent) and the metals Gold and Silver weaken (more expensive due to stronger dollar). Safety also sought in (supposed) risk–free assets such as US Treasury bonds and the German Bunds while the benchmark yields (borrowing costs) for the Club-Med nations mentioned above have risen (Spain now well above the unsustainable and often bailout-triggering 7%) as their debt was shunned.
The EUR/USD pair has fallen to a near a 2-year low of 1.19 as the USD benefited from both the flight to safety and Europe’s debt crisis fears. The latter has also seen GBP/EUR rise to near a 4-year high of 1.30. GBP/USD fallen to 1.56 on safehaven-seeking and fears of GBP seeking more rate cuts/quantitative easing. The US can’t be far off more QE either with jobs data so bleak, but it is not the case of which currency is the most beautiful, rather which is the least ugly.
Looking to the new week, debt crisis fears are likely to remain the dominant theme, however, we do get the first round of some second-quarter (Q2) data which could help markets decide on next steps for monetary stimulus (GDP, Manufacturing & Services, PMI, IFO). The UK is likely to print another -0.2% for GDP (both quarterly and annually). PMI data from Europe may be weak on account of Germany slowing. US GDP expected to slow on account of tax breaks expiring and spending cuts kicking in (the so called fiscal cliff).
The US corporate results deluge continues with the likes of Halliburton, McDonalds, Coca Cola, Texas Instruments.
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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