Getting latest data loading
Home / Morning Report / Morning Report

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

Morning Report - 23 February 2018

Yesterday’s UK 100 Leaders Close (p) Chg (p) % Chg % YTD
Centrica PLC 142.15 9.9 7.5 3.5
Barclays PLC 211 8.9 4.4 3.9
NMC Health PLC 3510 110 3.2 21.7
RSA Insurance Group PLC 632.6 19.6 3.2 0.0
BHP Billiton PLC 1521.2 27.2 1.8 -0.1
Yesterday’s UK 100 Laggards Close (p) Chg (p) % Chg % YTD
Barratt Developments PLC 551.8 -15.6 -2.8 -14.8
BAE Systems PLC 585 -16.4 -2.7 2.1
HSBC Holdings PLC 728.1 -19.2 -2.6 -5.1
TUI AG 1545 -34 -2.2 0.3
British American Tobacco PLC 4354.5 -95.5 -2.2 -13.2
Major World Indices Mid/Close Chg % Chg % YTD
UK UK 100 7,252.4 -29.2 -0.40 -5.7
UK 19,736.0 -52.8 -0.27 -4.8
FR CAC 40 5,309.2 7.1 0.13 -0.1
DE DAX 30 12,461.9 -8.6 -0.07 -3.5
US DJ Industrial Average 30 24,962.5 164.8 0.66 1.0
US Nasdaq Composite 7,210.1 -8.1 -0.11 4.4
US S&P 500 2,704.0 2.6 0.10 1.1
JP Nikkei 225 21,892.8 156.3 0.72 -3.8
HK Hang Seng Index 50 31,285.0 319.4 1.03 4.6
AU S&P/ASX 200 5,999.8 48.9 0.82 -1.1
Commodities & FX Mid/Close Chg % Chg % YTD
Crude Oil, West Texas Int. ($/barrel) 62.72 -0.02 -0.02 4.4
Crude Oil, Brent ($/barrel) 66.33 0.03 0.04 -0.5
Gold ($/oz) 1326.53 -2.38 -0.18 1.8
Silver ($/oz) 16.65 0.01 0.05 -1.4
GBP/USD – US$ per £ 1.3935 -0.12 3.2
EUR/USD – US$ per € 1.2293 -0.27 2.5
GBP/EUR – € per £ 1.1337 0.15 0.7
UK 100 Index called to open +5pts at 7260

UK 100 : 1-month, 4-hourly

Click graph to enlarge

Markets Overview: (Source: Bloomberg, FT, Reuters, DJ Newswires)

UK 100 Index called to open +5pts at 7260, having extended its bounce overnight but still struggling under the shadow of falling highs at resistance at 7285. Bulls will need to see this overcome before getting too excited. Bears will be looking for it to serve as a hurdle to produce a pullback towards yesterday’s 7200 base.  Watch levels: Bullish 7285, Bearish 7240

Calls for a marginally positive open come after equally muted sessions in both the US and Asia overnight, however gains have accelerated as the US Dollar recovers from fresh Mueller indictments-inspired lows with handily reciprocal GBP and EUR strength helping the multitude of foreign earning stocks on both the UK 100 and DAX.

Miners, however, may not like the impact of Greenback strength on commodities. Note Oil consolidating at 2-week highs after a surprise US inventory drawdown, while a smattering of corporate results are sure to influence sentiment again this morning, including a handful of financials/insurance.

Corporate news this morning: RBS: 2017 Total income £13.1B beats £12.96b est. with Q4 £3.1B in-line; First annual profit in a decade after small Q4 net loss; net interest margin a shade lower; costs -10%; legacy issues remain with another £760m litigation in Q4. IAG results mixed; Revenues €22.97b bang in-line, adj. EBIT €3.1b beats €3.05bn es.t; adj. EPS €1.02 light of €1.06 est.; 14.5c div beats 12.5c est.; new €500m buyback as expected.

Standard Life Aberdeen selling insurance business to Phoenix for £3.2bn (£2.8bn + 20% stake). William Hill reports £75m loss after Australia writedown following gambling crackdown, dividend +6%. Rightmove profits +10% on revenues +11%, listings +2%, dividend +12.5%. Aviva sells remaining Spanish businesses. Pearson reiterates 2018 guidance, 2017 profits at upper end of estimates, BUT slashes dividend by 65%.

A mixed session on US equity markets saw both the Dow Jones and S&P 500 close higher, however the Tech-heavy Nasdaq closed lower for the fourth consecutive session, its longest losing streak since November 2016, as large-cap Tech stocks fell. Manufacturers (3M, Caterpillar and Boeing) led the Dow Jones higher alongside United Technologies, while the S&P closed 0.1% to the good.

Gold has retreated from overnight highs, as a temporary reprieve in US dollar strength gives way to recovery. After failing to overcome Wednesday afternoon’s highs of $1332, and alongside the USD rebound, the precious metal has turned back towards yesterday’s $1321 lows. A multitude of central bank speakers today have the power to influence FX markets and hence the USD-denominated commodity today.

Crude Oil benchmarks have consolidated around 2-week highs, having reacted strongly to both a surprise draw in EIA US oil inventories as well as the temporary US dollar weakness after fres Mueller indictments. Global benchmark Brent is trading back above $66, although off overnight highs of $66.7, while US crude trades above $62.5 after retreating from $63 highs.

In focus today, on a light day for macro data, will be Eurozone Consumer Price Inflation (final; 10am) likely showing deflation in January (-1.6% vs 0.4% prev.) and confirm a further slowing to 1.3% YoY vs 1.4% in Dec. That said, the Core metric will likely be the focus, confirmed up 1% from 0.9% prev., but still stuck around half the central bank’s circa 2% target.

While data may be in short supply, there is no lack of speakers throughout the course of the day. This morning, the EU’s Dombrovskis (10:15am) may face questions relating to the behaviour of countryman and ECB Governing Council member Rimsevics amid corruption allegations, before the BoE’s Ramsden discusses “Tackling the UK’s Productivity Challenge” at midday.

This afternoon, The Fed’s Dudley (voter) and Rosengren (non-voter) speak together at 3:15pm in a discussion on the report “A Skeptical View of the Impact of the Fed’s Balance Sheet”, shortly before the Fed Monetary Policy report is released to Congress. The ECB’s Coeure and the Fed’s Mester (voter; 6:30pm) participate in “A Review of the Objectives for Monetary Policy” panel at the U.S. Monetary Policy Forum after the European close, while Mester’s colleague Williams (voter; 8:40pm) rounds off the week’s speakers with a speech covering the “Outlook on the Economy and the Implications for Monetary Policy”.

Note, a meeting of EU leaders will be taking place in Brussels today, without UK PM Theresa May, as the bloc navigates the UK’s exit after six decades of membership. The primary focus will be on budget contributions in Britain’s absence, with France and Germany in particular keen to plug the Brexit black hole left in the EU’s finances.

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.


Back to Top

This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
.