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| UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Aviva PLC | 410.8 | 25.8 | 6.7 | -20.4 |
| Standard Chartered PLC | 646 | 31.7 | 5.2 | 14.6 |
| Intu Properties PLC | 306.1 | 11.1 | 3.8 | -3.5 |
| Paddy Power Betfair PLC | 8830 | 315.0 | 3.7 | -2.8 |
| BHP Billiton PLC | 982.9 | 34.3 | 3.6 | 29.3 |
| UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Hikma Pharmaceuticals PLC | 2220 | -448.0 | -16.8 | -3.5 |
| Randgold Resources Ltd | 8635 | -345.0 | -3.8 | 108.4 |
| Next PLC | 5200 | -140.0 | -2.6 | -28.7 |
| Lloyds Banking Group PLC | 51.95 | -1.0 | -2.0 | -28.9 |
| SABMiller PLC | 4361 | -44.5 | -1.0 | 7.2 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 6,740.2 | 105.8 | 1.59 | 8.0 |
| UK | 17,244.3 | 247.2 | 1.45 | -1.1 |
| FR CAC 40 | 4,345.6 | 24.6 | 0.57 | -6.3 |
| DE DAX 30 | 10,227.9 | 57.7 | 0.57 | -4.8 |
| US DJ Industrial Average 30 | 18,352.0 | -3.0 | -0.02 | 5.3 |
| US Nasdaq Composite | 5,166.3 | 6.5 | 0.13 | 3.2 |
| US S&P 500 | 2,164.3 | 0.5 | 0.02 | 5.9 |
| JP Nikkei 225 | 16,254.6 | -0.3 | 0.00 | -14.6 |
| HK Hang Seng Index 50 | 22,142.9 | 310.7 | 1.42 | 1.0 |
| AU S&P/ASX 200 | 5,495.7 | 19.9 | 0.36 | 3.8 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 41.55 | 0.32 | 0.76 | 12.1 |
| Crude Oil, Brent ($/barrel) | 43.85 | 0.58 | 1.33 | 16.6 |
| Gold ($/oz) | 1369.80 | 3.40 | 0.25 | 29.2 |
| Silver ($/oz) | 20.43 | 0.05 | 0.26 | 47.8 |
| GBP/USD – US$ per £ | 1.31 | – | 0.04 | -10.9 |
| EUR/USD – US$ per € | 1.11 | – | 0.03 | 2.6 |
| GBP/EUR – € per £ | 1.18 | – | 0.03 | -13.1 |
Click graph to enlarge
UK 100 Index called to open +20pts at 6760 after yesterday’s 120 point rally took the index back up above 6700. The recovery stalled at the 1 Aug high 6770. Note the RSI has come back down from overbought while the MACD has made a bearish cross. Bulls looking for profit taking to peter out this morning and a resumption of the stimulus uptrend while bears will be selling on the aftorementioned bearish technical indicators. Updated watch levels: Bullish 6790, Bearish 6735.
A positive opening call for European equity markets comes after the Bank of England threw the kitchen sink at what is after all only a potential post-Brexit economic downturn. Even though it hasn’t happened yet, sentiment indicators are telling us it probably will. Fitch has noted that the BoE’s actions are a ‘proactive’ step but will only soften the impact of Brexit (which is still a thing) rather than offset it. Subtle chat from the rating agency.
Asian markets are positive with investors there encouraged by the BoE – that perhaps being a lesson in market pacification for the Bank of Japan. Since the central bank announced that it would only increase its purchases of ETFs, while keeping interest rates and its purchases of Japanese government bonds unchanged, JGB yields have actually gone up. Will it now re-think?
US stocks closed largely unchanged with stateside investors looking ahead to today’s Non Farm Payrolls (forgot about that one didn’t you!). A stronger US Dollar will also be dampening US equities this morning after Sterling plunged post-BoE.
Crude oil futures are selling back from overnight highs once more, although both Brent and WTI are in rising channels – boosted by those bigger than expected draw downs in distillates we got earlier in the week. A little more downside perhaps – to $43.5 for Brent and $41.30 for WTI – before any potential bounce, although note a slightly stronger USD and this afternoon’s Baker Hughes Rig Count could cause the oil price to deviate from said forecasts.
Gold has popped up above its 50-hour moving average but is finding the going tough around $1365. Today’s US jobs report could mean its all quiet on the golden front this morning, with the inevitable USD volatility around lunchtime taking charge of gold’s fortunes into the weekend.
In focus today we’ll be looking at UK Halifax house prices this morning ahead of this afternoon’s US jobs report. The Brexit effect is set to take house price growth negative in July but growth is seen accelerating on the quarter.
Non Farm payrolls is looking to come in around the long term average at 180K after a very strong print last month. Note potential for a negative surprise given that everyone will expect a bumper summer figure. US unemployment is seen falling to 4.8% which, according to economics, means too many people are in work.
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