|FTSE 100 Leaders||Close||Chg||% Chg||% YTD|
|Vedanta Resources PLC||1008||49.5||5.2||-0.69|
|Man Group PLC||78.8||3.5||4.6||-37.31|
|Royal Bank of Scotland Group (The) PLC||20.8||0.81||4.1||3.07|
|Polymetal International PLC||828||29||3.6||-24.31|
|Standard Chartered PLC||1328.5||42||3.3||-5.71|
|Tullow Oil PLC||1373||37||2.8||-2.07|
|FTSE 100 Laggards||Close||Chg||% Chg||% YTD|
|Aberdeen Asset Management PLC||237.9||-3.2||-1.3||12.22|
|United Utilities Group PLC||617.5||-5||-0.8||1.9|
|Severn Trent PLC||1644||-11||-0.7||9.89|
|Major World Indices||Mid/Close||Chg||% Chg||% YTD|
|Dow Jones Industrial Average||12504.5||135.12||1.09||2.35|
|Commodities & FX||Mid/Close||Chg||% Chg||% YTD|
|Crude Oil Light Sweet Composite||93.27||0.08||0.09||-5.79|
|GBP/USD – US $ per £||1.5825||-||-0.01||1.9|
|EUR/USD – US$ per Euro||1.2793||-||-0.15||-1.24|
|GBP/EUR – Euros per £||1.237||-||0.14||3.1|
Today's Main Events
- 09:30 UK Public Finances & Consumer Price Inflation
- 09:30 ES Bond Auction
- 15:00 EZ Consumer Confidence
- 15:00 US Richmond Fed
- 15:00 US Existing Home Sales
- Click or full Live Macro calendar, incl. consensus expectations
Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)
FTSE 100 called to open +35pts after US markets closed higher breaking their 6-day losing streak, fuelled not be macro data but by commitment by G8 leaders to focus on jobs and growth as well as austerity in order to resolve the eurozone crisis and to keep Greece in the single currency, and ahead of an EU summit on Wednesday which looks likely to see renewed discussion (heated?) on Eurobonds (Hollande for, Merkel against). According to a Spanish government official, Spain is also pushing for a larger role for the ECB in the new growth strategy.
Asian markets buoyed by the increased risk appetite and rebound in Europe and US, and ahead of tomorrow’s EU summit (no pressure on EU leaders to deliver, again). Macro data limited to China’s Conference Board Leading Economic Index which grew at 0.8% again in April. Optimism after Chinese Premier Wen’s weekend comments about policy changes to maintain growth and the possibility that this will be via a speeding up of approvals for infrastructure investment to spur growth.
Note that the IIF has said that Spanish banking losses are expected to range from €216-260bn with the industry likely to need around €60bn in outside help to stay afloat. Markets may view this as piling pressure on the EU summit attendees, or may just return to worrying about contagion. There is also at FT article (link below) discussing whether the ECB is propping up Greek banks, something which could be removed if its leaves the Euro.
In commodities, Gold looks to have found resistance just ahead of $1,600oz. Silver followed suit, slowing up before $29/oz. In FX, the USD remains flat versus GBP, weakened back vs EUR after finding support near Jan lows, but strengthened vs JPY. EUR strengthened back versus GBP as optimism gains ahead of the EU summit.
Today’s focus will be on the UK’s public finances and inflation figures. The former is expected to show surpluses for the first month of the new tax year. Inflation is anticipated to have dropped back from 3.5% annually to 3.1% in April with core inflation back at 2.0%. RPI is also seen cooling a touch. Thereafter, Spain’s bond auction will be watched for yields. Eurozone consumer confidence and US Richmond Fed and Housing data could also dictate sentiment with the first two seen deteriorating but the latter seen rising.
After its messy Nasdaq IPO on Friday (delayed opening, limited 10% pop, flat close) and an 11% drop in its first full day trading yesterday, could bargain hunters be circling Facebook this afternoon?
Results out this morning from Marks & Spencer (MKS) and Vodafone (VOD).
Overnight Macro Data: (Source: Reuters/DJ Newswires)
- China Conf Board Leading Econ index Growth
- Japan Supermarket Sales Contraction slowed
- See calendar for all details
UK Company Headlines: (Source: Reuters/DJ Newswires)
- Marks & Spencer year profit falls for first time in 3 years
- Thomas Cook agrees to sell India unit for 94 mln stg
- Vodafone cuts revenue outlook on European woes
- Yell appoints advisors to create new capital structure
- Cobham extends Thrane & Thrane offer period
- Bloomsbury profit up, says has strong titles lined up for 2012
- Victrex reports 4 pct fall in profit
- FSA to investigate “historic issues” at HomeServe
- Intermediate Capital Group profit jumps
Morning Press Selection:
- BoE bows to pressure for probes – FT.com – UK Economy http://on.ft.com/LlJrnp
- Gold loses its hold over haven hunters – FT.com – Commodities http://on.ft.com/Jro0qR
- France to push for eurozone bonds – FT.com – EU Economy http://on.ft.com/JhWtU2
- Secret €100bn aid props up Greek banks – FT.com – Europe http://on.ft.com/KOb8Xf
- Banks braced for fresh ratings cuts – FT.com – Capital Markets http://on.ft.com/K5NtE3
- Banks must regain investors’ trust – FT.com – Markets http://on.ft.com/K41KQ5
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