Today's Main Events
- 10:00 EZ Confidence Figs
- 11:00 UK CBI Reported Sales & Expects
- 13:30 US Chicago Fed & Jobless
- 15:00 US Pending Home Sales
- Click for full Live Macro calendar, incl. consensus
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|UK 100 Leaders||Close||Chg||% Chg||% YTD|
|Vedanta Resources PLC||1225||50||4.3||20.69|
|International Consolidated Airlines Group SA||174.1||5.6||3.3||18.11|
|Glencore International PLC||429.2||13.45||3.2||9.49|
|BAE Systems PLC||300.3||9||3.1||5.33|
|UK 100 Laggards||Close||Chg||% Chg||% YTD|
|Reed Elsevier PLC||512.5||-13.5||-2.6||-1.25|
|Man Group PLC||95.2||-1.8||-1.9||-24.26|
|Polymetal International PLC||939||-11||-1.2||-14.17|
|Morrison (Wm) Supermarkets PLC||285.2||-3.3||-1.1||-12.57|
|Major World Indices||Mid/Close||Chg||% Chg||% YTD|
|Dow Jones Industrial Average||13090.7||89.14||0.69||7.15|
|Commodities & FX||Mid/Close||Chg||% Chg||% YTD|
|Crude Oil Light Sweet Composite||104.135||0.085||0.08||5.2|
|GBP/USD – US $ per £||1.6178||–||0.01||4.17|
|EUR/USD – US$ per Euro||1.3231||–||0||2.13|
|GBP/EUR – Euros per £||1.2227||–||0.04||1.91|
UK 100 called to open +10pts after US posted good gains following the blowout earnings from tech giant Apple which overshadowed some murky macro data (UK GDP back in contraction, which is at odds with other recent industry data; US durable goods orders collapsing; a technically uncovered German bond auction). Sentiment also helped by some European politicians moving focus to growth over austerity, hoping to reduce the longer-term fallout from excessive short-term of stimulus.
The Fed left rates and its dovish statement unchanged (rates low until end-2014), but acknowledged that inflation had ticked up and unemployment remained high despite the economy expanding moderately. It also reiterated that it was prepared to do more if necessary, meaning the door has not been closed on more QE. Same true in the UK, after recent contradictory macro data? IMF comments were also positive on the health of Spain’s top banks (sufficiently capitalised? really?) while ratings agency Fitch suggested that strong US manufacturing is masking weakness from emerging behemoth China.
Overnight macro data shows UK Consumer confidence returning to growth (highest level in 9 months). Asian markets positive after Fed Chairman Bernanke’s press conference, however gains being kept in check by Eurozone worries. New Zealand also left rates unchanged. Focus now turns to the Bank of Japan which where it is expected to ease policy further.
At first glance, this morning’s Q1 results from Barclays, AstraZeneca and Royal Dutch Shell appear to have beaten consensus expectations. The fact that these three account for over 12% of the UK 100 likely helping contribute to the index’ s positive opening call.
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