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| Yesterday’s UK 100 Leaders | Close (p) | Chg (p) | % Chg | % YTD |
| Unilever | 4330.5 | 127.5 | 3.0 | 5.0 |
| Imperial Brands | 2905.5 | 53 | 1.9 | -8.2 |
| Coca-Cola HBC | 2801 | 51 | 1.9 | 15.7 |
| BP | 569.9 | 7.7 | 1.4 | 9.0 |
| Royal Dutch Shell A | 2661.5 | 34.5 | 1.3 | 7.3 |
| Yesterday’s UK 100 Laggards | Close (p) | Chg (p) | % Chg | % YTD |
| Anglo American | 1622 | -69 | -4.1 | 4.7 |
| Melrose Industries | 218.4 | -7.1 | -3.2 | 2.9 |
| Ashtead | 2340 | -72 | -3.0 | 17.5 |
| WPP | 1141 | -34.5 | -2.9 | -14.9 |
| Evraz | 523 | -15.2 | -2.8 | 53.8 |
| Major World Indices | Mid/Close | Chg | % Chg | % YTD |
| UK UK 100 | 7,684.0 | 7.7 | 0.10 | -0.1 |
| UK | 20,907.2 | -77.0 | -0.37 | 0.9 |
| FR CAC 40 | 5,417.1 | -30.4 | -0.56 | 2.0 |
| DE DAX 30 | 12,686.3 | -79.6 | -0.62 | -1.8 |
| US DJ Industrial Average 30 | 25,064.5 | -134.8 | -0.53 | 1.4 |
| US Nasdaq Composite | 7,825.3 | -29.1 | -0.37 | 13.4 |
| US S&P 500 | 2,804.5 | -11.1 | -0.40 | 4.9 |
| JP Nikkei 225 | 22,641.3 | -123.4 | -0.54 | -0.5 |
| HK Hang Seng Index 50 | 27,996.8 | -14.1 | -0.05 | -6.4 |
| AU S&P/ASX 200 | 6,278.5 | 15.8 | 0.25 | 3.5 |
| Commodities & FX | Mid/Close | Chg | % Chg | % YTD |
| Crude Oil, West Texas Int. ($/barrel) | 68.35 | -1.33 | -1.9 | 13.7 |
| Crude Oil, Brent ($/barrel) | 72.77 | -0.46 | -0.62 | 9.2 |
| Gold ($/oz) | 1222.67 | 5.87 | 0.48 | -6.2 |
| Silver ($/oz) | 15.27 | -0.22 | -1.4 | -9.5 |
| GBP/USD – US$ per £ | 1.3033 | – | 0.08 | -3.5 |
| EUR/USD – US$ per € | 1.1667 | – | 0.10 | -2.8 |
| GBP/EUR – € per £ | 1.1170 | – | -0.04 | -0.7 |
Click graph to enlarge
UK 100 Index called to open -10pts at 7675, holding within the confines of a 4-day shallow rising channel (last 2-days sideways), consolidating the recent rebound from 7560. Bulls need a break above 7686; Bears require a breach of 7670 rising support. Watch levels: Bullish 7690, Bearish 7665
Calls for a negative open come after Wall St fell on comments from President Trump, criticising the traditionally-independent US Fed’s current rate-hiking policy normalisation, sending both USD and Financials lower. The instincts of a cheap-money-loving property developer are clearly seeping through.
Negative sentiment continued into Asian trading where the Chinese renminbi was further battered by the ongoing Sino-US trade conflict which is beginning to bite. That said, stocks in Shanghai have staged a late recovery after hints about state banks injecting liquidity via stealth-QE.
Trump-induced USD weakness has sent Sterling higher, hindering the UK Index ’s big international contingent, though higher commodity prices (Oil and Copper rebounding from week’s lows) could offset this to help heavyweight Energy & Miners. Note, however, shares in both Rio Tinto and BHP Billiton offside in Australia overnight on the back of China concerns.
Corporate news this morning includes; UK CMA raises concerns over Experian’s ClearScore acquisition; May Reduce Competition; seeks remedy by July 27. A Federal judge has dismissed a NYC suit against Oil companies (incl. BP, Royal Dutch Shell) ruling climate change and effects are global issues beyond court’s reach (San Francisco and Oakland has cases thrown out last month too).
Unilever completes first €3bn tranche of €6bn buyback program, second tranche starts today. Italy’s Corriere della Sera. says easyJet CEO confirmed continued interest in at least parts of Alitalia. Homeserve trading in-line with expectations for start of fiscal 2019 (traditionally quieter season); continued strong organic growth in North America, potential for acquisitions to boost group growth.
Beazley gross written premiums +15% (property rates up after big catastrophe losses for sector last year), net written premiums +18%, pre-tax profits -64%; interim div +5.4%; on target for double-digit FY premium growth, combined ratio 90-95%, provided claims in-line.
Acacia Mining slides to Q2 net loss despite revenues +12%, as Tanzania royalties dispute/export ban rolls on; production down -36% but on-track for top end of guidance. No interim dividend. Sirius Minerals announces POLY4 supply agreements in China, pricing in-line with other contracts.
In focus today, on a rather macro-light day, will be UK’s June Public Sector Net Borrowing (9:30am), expected to increase from May, St Louis Fed President Bullard (1pm; non-voting dove) speaks in Glasgow, KY and we get quarterly earnings from General Electric (11:30am) and the last major US financials, State Street, at midday.
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Prepared by Michael van Dulken, Head of Research