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| UK 100 Leaders | Close | Chg | % Chg | % YTD |
| Eurasian Natural Resources Corporation PLC | 333.3 | 18.6 | 5.9 | -47.55 |
| Kazakhmys PLC | 738 | 31.5 | 4.5 | -20.39 |
| Evraz PLC | 254.1 | 9 | 3.7 | -32.19 |
| Rexam PLC | 456.5 | 16 | 3.6 | 29.39 |
| Vedanta Resources PLC | 1101 | 36 | 3.4 | 8.47 |
| CRH PLC | 1210 | 35 | 3 | -5.47 |
| Weir Group PLC | 1852 | 52 | 2.9 | -8.86 |
| Burberry Group PLC | 1028 | 28 | 2.8 | -13.25 |
| UK 100 Laggards | Close | Chg | % Chg | % YTD |
| Old Mutual PLC | 172.4 | -4.7 | -2.7 | 27.23 |
| BAE Systems PLC | 328.1 | -5.3 | -1.6 | 15.08 |
| Johnson Matthey PLC | 2339 | -30 | -1.3 | 21.61 |
| BG Group PLC | 1300.5 | -14.5 | -1.1 | -5.52 |
| United Utilities Group PLC | 728.5 | -7.5 | -1 | 20.21 |
| Tesco PLC | 315.35 | -2.8 | -0.9 | -21.84 |
| Morrison (Wm) Supermarkets PLC | 278.2 | -2.2 | -0.8 | -14.71 |
| Next PLC | 3564 | -28 | -0.8 | 30.22 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 5871.02 | 43.24 | 0.74 | 5.36 |
| UK | 12061.3 | 106.88 | 0.89 | 19.38 |
| FR CAC 40 | 3457.04 | 55.84 | 1.64 | 9.41 |
| DE DAX 30 | 7397.87 | 92.66 | 1.27 | 25.42 |
| US DJ Industrial Average 30 | 13610.2 | 34.84 | 0.26 | 11.4 |
| US Nasdaq Composite 100 | 3136.19 | -13.27 | -0.42 | 20.38 |
| US S&P 500 | 1460.93 | -0.47 | -0.03 | 16.17 |
| JP Nikkei 225 | 8863.3 | 38.71 | 0.44 | 4.83 |
| HK Hang Seng Index 48 (closed) | 20888.87 | -123.51 | -0.59 | 13.31 |
| AU S&P/ASX 200 | 4481.86 | -12.52 | -0.28 | 10.48 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, US Light Sweet ($/barrel) | 88.895 | -1.005 | -1.12 | -10.21 |
| Crude Oil, Brent ($/barrel) | 111.185 | -0.565 | -0.51 | 3.53 |
| Gold ($/oz) | 1772.7 | -9.8 | -0.55 | 13.17 |
| Silver ($/oz) | 34 | -0.56 | -1.62 | 22.41 |
| Platinum ($/oz) | 1687.05 | -23.95 | -1.4 | 20.41 |
| GBP/USD – US$ per £ | 1.6096 | – | -0.24 | 3.65 |
| EUR/USD – US$ per € | 1.2982 | – | -0.42 | 0.22 |
| GBP/EUR – € per £ | 1.24 | – | 0.21 | 3.35 |
Click graph to enlarge
See Live Macro Calendar for all data, incl. consensus expectations
UK 100 called to open -20pts, with Asian markets starting the week on the back foot as persistent concerns regarding the Eurozone sovereign debt crisis and a slowing China offset the better than expected US employment report of Friday afternoon.
US markets failed to maintain their jobs-report gains into the close with a corresponding strengthening of the US Dollar and fall back by commodities denting risk. Pessimism bolstered by a European Central Bank (ECB) member saying Greece receiving next tranche of aid (wrangling with lenders over budget cuts/terms of bailout) not a done deal.
A Federal Reserve (Fed) peer also cited concerns of unintended inflationary consequences of QE and difficulty in eventual stimulus withdrawal. French President Hollande also reiterated urgency of Spain asking for a bailout saying it must be done by the October Summit (18-19 Oct) and that it is up to Spain to move first.
Adding to the negativity and aversion to risk was the World Bank which overnight cut growth forecasts for China and East Asia, insisting on the risk of a more severe slowdown of the world’s second largest economy, China, as well as the looming US fiscal cliff and eurozone crisis. Interestingly, this coincided with a an improvement in HSBC Services PMI for China, rebounding from a 12-month low in August, however, this failed to counter existing pessimism – possibly due to likelihood that official figure disappoints.
Other overnight data of note was the UK Lloyds Employment Index deteriorating further and this morning’s strong improvement in monthly growth for German Exports and its Trade Balance.
In FX and Commodities, the USD’s strengthening after jobs report has seen GBP/USD fall back to near 1-week lows continuing its decline from 1-year highs. EUR/USD weaker, but not as much, possibly on hopes that Spain will throw in the towel and ask for help. GBP/EUR off its lows, having found support at 1-year rising support trendline, but still seeing Eurozone optimism (everything’s relative) outweigh sterling strength.
The dollar move has seen Gold pull back from its highs, adding to the resistance from March and last November between $1790-1800/oz. Silver also pulled back sharply. Oil prices (US Light and Brent) also off their highs on dollar move, although US light Crude suffering more (back near month-lows) with its Brent Cousin supported by heightening of geopolitical tensions in the Middle East.
This week’s focus will be on trade data and production, with Germany kicking things off today with better trade data and its industrial production seen weakening in August later this morning. The UK’s industrial update is tomorrow, with industrial/manufacturing seen muted at best (July boosted after June’s extra bank holidays, August likely slower on summer of sport) however, the PMI manufacturing figure already suggested contraction and other signals suggest recovery still potentially a way off. The Eurozone industrial figures are out on Friday, and are also expected to show regional contraction.
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