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| Yesterday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Rolls-Royce | 900 | 46.4 | 5.4 | 6.3 |
| Mediclinic International | 619 | 18.8 | 3.1 | -4.7 |
| NMC Health | 3152 | 50 | 1.6 | 9.3 |
| Halma | 1307 | 18 | 1.4 | 3.7 |
| GKN | 447.6 | 5.6 | 1.3 | 40.1 |
| Yesterday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Burberry | 1619 | -166 | -9.3 | -9.7 |
| Informa | 705 | -42.4 | -5.7 | -2.4 |
| Pearson | 685 | -33.4 | -4.7 | -6.9 |
| Micro Focus International | 2175 | -56 | -2.5 | -13.8 |
| Johnson Matthey | 3222 | -78 | -2.4 | 4.8 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,725.4 | -30.5 | -0.39 | 0.5 |
| UK | 20,769.4 | -107.9 | -0.52 | 0.2 |
| FR CAC 40 | 5,494.0 | -19.8 | -0.36 | 3.4 |
| DE DAX 30 | 13,184.0 | -62.3 | -0.47 | 2.1 |
| US DJ Industrial Average 30 | 26,115.8 | 323.0 | 1.25 | 5.7 |
| US Nasdaq Composite | 7,298.3 | 74.6 | 1.03 | 5.7 |
| US S&P 500 | 2,802.6 | 26.1 | 0.94 | 4.8 |
| JP Nikkei 225 | 23,763.4 | -105.0 | -0.44 | 4.4 |
| HK Hang Seng Index 50 | 32,078.3 | 94.9 | 0.30 | 7.2 |
| AU S&P/ASX 200 | 6,014.6 | -1.3 | -0.02 | -0.8 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 64.00 | 0.22 | 0.35 | 6.5 |
| Crude Oil, Brent ($/barrel) | 69.34 | 0.17 | 0.25 | 4.1 |
| Gold ($/oz) | 1327.26 | -8.25 | -0.62 | 1.9 |
| Silver ($/oz) | 17.10 | -0.04 | -0.25 | 1.3 |
| GBP/USD – US$ per £ | 1.3839 | – | 0.10 | 2.5 |
| EUR/USD – US$ per € | 1.2206 | – | 0.21 | 1.7 |
| GBP/EUR – € per £ | 1.1338 | – | -0.11 | 0.7 |
Click graph to enlarge
UK 100 Index called to open +5pts at 7730, holding above support at 7715 that will either prove a platform for recovery or merely consolidation before a break lower towards 7688. Bulls still need a break above 7740; Bears still require a breach of 7715 to increase the chances of a bearish flag. Watch levels: Bullish 7740, Bearish 7715
Calls for a tepid UK Index start derive from a USD climb tempering GBP strength to buoy the international contingent, but a mixed China data dump (something for both the bulls and bears) as GDP and Industrial Production hold up but Retail Sales slow sharply begging questions about government curbs to avoid a credit bubble bust.
UK Housebuilders will like the jump in RICS UK house Price balance overnight. Oil given up some of overnight gains, seeing Energy stocks in Australia underperform. Miners unmoved after BHP production update, held back by stronger USD hampering commodity prices. German DAX struggling as EUR trades off its lows.
In UK corporate news this morning: AB Foods outlook unchanged; Q3 group revs +4% at constant FX; Primark +7%; Good Xmas; Margins held up. Whitbread: Premier Inn like-for-like revs miss but Restaurants beat and Costa not as weak as expected; On track for FY but expect tough UK high street environment and inflation to continue to pose challenges.
Experian continues to expect organic revenue growth of mid-single digits, with stable margins and further progress in Benchmark earnings per share. Halfords reports better than expected 3Q sales and revenues. Royal Mail reports 9-month group revenues +3% (flat underlying) with Parcel volumes +6% (revs +4%) offsetting Letter volumes -5% (revs -4%); still negotiating with unions.
US equity markets enjoyed an impressive bounce back from Tuesday’s losses overnight, with the Dow Jones surging over 300 points to close above 26,000 for the first time. The outperforming 30-stock index was lead higher by an outstanding session for largest constituent Boeing, easily offsetting Goldman Sachs losses. Both the S&P 500 and Nasdaq also closed at record highs, lifted by news that Apple is to repatriate billions in overseas cash, resulting in a $38bn US tax charge.
Note Morgan Stanley rounds off the major US banks’ Q4 earnings season at approximately midday.
Crude Oil benchmarks have recovered from yesterday morning’s lows, helped overnight by a reported API inventory drawdown greater than estimates, however held from making further gains as the US dollar extends its recovery to almost 1-week highs. Global benchmark Brent is trading at $69.5 having failed to overcome $69.8 intersecting resistance, while US crude has dipped back below $64 after turning back from $64.25 resistance.
Gold has fallen to a near 1-week low as the US dollar touches a corresponding high, with the precious metal continuing to remain under pressure around the $1325 mark. Traders will be watching to see if this level holds up as support for a return to $1332 intersecting resistance, or if it gives way for the safe-haven asset to retreat to fresh 4-day lows.
In focus today will be US Housing Starts and Permits (1.30pm) for its read across for consumer confidence, US inflation expectations and the economy. Permits are seen lower in December, ticking back further from October’s 2.5yr peak, while Starts edge back from their best in 14-months.
Philly Fed (also 1.30pm) indices are also expected to be lower in January before US Oil inventories (3pm) which may deliver a ninth straight Crude draw-down (much like API data hinted last night) but still at odds with Gasoline and Distillates stocks which continue to climb, albeit more slowly last week.
Morgan Stanley (12pm) rounds off the US Bank sector’s Q4 results with peers having announced chunky one-time charges and a tough end to the year for trading.
Oil traders will be interested in the OPEC monthly oil report (normally around 10am) while we get comments from the ECB’s Weidmann, Coeuré and the IMF’s Lagarde from a panel on ‘A post-crisis agenda for the euro area and Germany: which way forward?’ a joint conference of IMF and German Bundesbank (8.15am and 2.30pm).
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