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| UK 100 Leaders | Close | Chg | % Chg | % YTD |
| Eurasian Natural Resources Corporation PLC | 289.4 | 10.2 | 3.7 | -54.46 |
| Royal Bank of Scotland Group (The) PLC | 325 | 8 | 2.5 | 61.05 |
| Anglo American PLC | 1921 | 40 | 2.1 | -19.25 |
| Lloyds Banking Group PLC | 49.095 | 0.995 | 2.1 | 89.52 |
| Polymetal International PLC | 1189 | 24 | 2.1 | 8.68 |
| Evraz PLC | 259.4 | 5.1 | 2 | -30.77 |
| Petrofac Ltd | 1654 | 31 | 1.9 | 14.78 |
| CRH PLC | 1248 | 17 | 1.4 | -2.5 |
| UK 100 Laggards | Close | Chg | % Chg | % YTD |
| Reckitt Benckiser Group PLC | 3895 | -51 | -1.3 | 22.48 |
| Shire PLC | 1896 | -22 | -1.1 | -15.47 |
| Severn Trent PLC | 1596 | -18 | -1.1 | 6.68 |
| BAE Systems PLC | 343.3 | -3.8 | -1.1 | 20.41 |
| Aberdeen Asset Management PLC | 365.7 | -3.9 | -1.1 | 72.5 |
| Unilever PLC | 2395 | -25 | -1 | 10.73 |
| Pearson PLC | 1196 | -12 | -1 | -1.16 |
| Diageo PLC | 1809.5 | -18 | -1 | 28.65 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 5954.3 | 0.12 | 0 | 6.86 |
| UK | 12397.7 | 1.9 | 0.02 | 22.71 |
| FR CAC 40 | 3674.26 | 21.65 | 0.59 | 16.28 |
| DE DAX 30 | 7655.88 | 19.65 | 0.26 | 29.8 |
| US DJ Industrial Average 30 | 13096.3 | -18.29 | -0.14 | 7.19 |
| US Nasdaq Composite 100 | 2985.9 | -4.25 | -0.14 | 14.62 |
| US S&P 500 | 1418.1 | -1.73 | -0.12 | 12.76 |
| JP Nikkei 225 | 10395.18 | 72.2 | 0.7 | 22.94 |
| HK Hang Seng Index 48 | 22640.51 | 28.37 | 0.13 | 22.82 |
| AU S&P/ASX 200 | 4671.3 | 23.34 | 0.5 | 15.15 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, US Light Sweet ($/barrel) | 91.295 | -0.085 | -0.09 | -7.78 |
| Crude Oil, Brent ($/barrel) | 111.235 | 1.08 | 0.98 | 3.58 |
| Gold ($/oz) | 1662.85 | 0.25 | 0.02 | 6.16 |
| Silver ($/oz) | 30.2475 | 0.0625 | 0.21 | 8.9 |
| Platinum ($/oz) | 1542.25 | 5.25 | 0.34 | 10.07 |
| GBP/USD – US$ per £ | 1.6123 | – | 0.06 | 3.82 |
| EUR/USD – US$ per € | 1.3248 | – | 0 | 2.27 |
| GBP/EUR – € per £ | 1.217 | – | 0.05 | 1.43 |
Click graph to enlarge
See Macro Calendar for rest of week’s data, incl. consensus expectations
UK 100 called to open +15pts, with Asian markets again higher on recent Japanese election winners Abe’s calls for more aggressive monetary easing and more borrowing for government spending in Japan. This followed weaker than Industrial Production, Manufacturing PMI and Labour Cash earnings from the nation and an inflation reading in negative territory (deflationary), although the jobless rate did improve and Retail Sales were mixed.
The Yen (JPY) remains weak against all the majors on the expectations of more money printing, hitting a 28-month low against the dollar (USD). The flagship Nikkei 225 equity index has also made a new 2012 high with exporters gaining from the anticipated help from a weaker currency.
Elsewhere in Asia, equities higher on hopes that a US Fiscal Cliff deal will be struck this week in time for next-week’s C-day (cliff-day) deadline, this after the White House suggested the President would meet with congressional leaders later today to focus on breaking the current stalemate.
Always one to be watched for news on monetary policy, China says it will maintain its prudence next year and keep a keen eye on financial risks. This followed data showing a fall in the MNI Business sentiment indicator in December.
In Europe, markets remain in risk-off mode after suggestions from US Senate leader that the US economy would likely fall off the cliff and confirmation that US Consumer confidence had dropped to its lowest levels since August – consumers holding back as fears grow about the impact on their pay-packets. Note US equities closed off their worst levels, paring losses in later trading.
UK 100 futures had a good go at the 6000 figure yesterday but when the sun was at its highest the index peaked and began to fall back, almost suggesting it knew that US Jobless would remain static, US Consumer confidence would plummet on fiscal cliff fears and New Home Sales would just miss expectations. Nonetheless, the index maintains its trendline of rising support at 5690. So another attempt is not to be ruled out before the New year festivities.
In focus today will remain the US fiscal cliff with the deadline now so close. In economic data though, watch French GDP for an update on one of the major Eurozone members. Growth in Q3 expected to be confirmed, although very tepid. Spanish Retail likely to be very weak again. US Chicago PMI is seen ticking up a touch form the growth/contraction breakeven. US Pending Home Sales seen a touch weak in November after strong growth in the October.
In FX, GBP/USD has broken down through prior support at 1.61 after fiscal cliff risk-aversion saw the USD favoured as a safe-haven. Downtrend since 19 Dec. Support at 1.60, Resistance 1.62. EUR/USD remains in narrow 24-hour range at 1.325. GBP/EUR broken down yet further to make new 3-month lows below 1.22.
In Commodities, Gold still testing 200-day moving average at $1664 having bounced from lows of $1640. Gains held back by demand for USD from those seeking safe-haven. Support still in place thanks to trendline of rising lows from mid-May. As for the Oils, both US Light and Brent Crude remain in 1-month uptrends, but the USD strength looks to be putting a cap on their advances. US light found a top around $91.5 and Brent slowed up around $111.5.
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