SVS Early Robin 01/08/2019


  • SVS expects the FTS100 to open around 10 points lower this morning.
     
  • The UK FTSE 100 closed 60 points higher yesterday with sterling strengthening slightly after four days of declines.
     
  • US markets closed 334 points lower yesterday after the Fed cut interest rates by 25bps (0.25%) however Powell then went on to say that there would not be a series of cuts which appeared to disappoint the markets.
     
  • Asian markets traded lower overall with investors digesting the news that US-China trade talks will now resume in September on the back of disappointing Fed rate cuts.
     
  • In the UK we expect many interim company updates including Convatec (CTEC.L), British American Tobacco (BATS.L), Barclays (BARC.L), Rio Tinto (RIO.L) and Intertek Group (ITRK.L). In the US watch for quarterly earnings from ABIOMED Inc., Cigna Corp., DuPont de Nemours Inc. and Wesco International.
     
 

Global Market Movements

Global Market Indices
FTSE 100 7,586.78 -59.99 -0.78%
FTSE 250 19,666.52 -108.30 -0.55%
Xetra DAX 12,189.04 41.80 0.34%
CAC40 5,518.90 7.83 0.14%
EuroSTOXX50 385.77 0.66 0.17%
Dow Jones 26,864.27 -333.75 -1.23%
Nasdaq 8,175.42 -98.19 -1.19%
S&P500 2,980.38 -32.80 -1.09%
Nikkei 225* 21,490.43 -31.10 -0.16%
Hang Seng* 27,588.55 -189.20 -0.68%
Shanghai* 2,909.63 -22.87 -0.78%
Sensex50* 37,195.75 -282.73 -0.75%
Foreign Exchange (Majors)
USD/JPY 109.19 0.41 0.37%
EUR/USD 1.105 -0.0028 -0.23%
GBP/USD 1.2127 -0.0032 -0.26%
EUR/GBP 0.9111 0.0001 0.01%
Crude Oil
Nymex 57.86 -0.73 -1.25%
Brent 65.17 0.45 0.70%
Gold (USD/ounce)
Spot 1,409.44 -4.34 -0.31%
Futures 1,421.10 -16.60 -1.15%
Bond Yields (10 year)
U.S 2.035 0.0199 -
German -0.438 -0.0418 -
*figures correct as of (06:00 – GMT)

Today's key Economic/Political events

Time (GMT) Event Expected Previous
08:00 EU Markit Manufacturing PMI (Jul) 46.4 46.4
08:30 UK Markit Manufacturing PMI (Jul) 47.7 48.0
11:00 UK BoE Asset Purchase Facility £435B £435B
11:00 UK BoE Interest Rate Decision 0.75% 0.75%
11:00 UK BoE MPC Vote Unchanged 9 9
12:30 US Initial Jobless Claims (Jul 26) 214K 206K
12:30 US Initial Jobless Claims 4-week average (Jul 26) - 213K
12:30 US Continuing Jobless Claims (Jul 19) 1.678M 1.676M
13:45 US Markit Manufacturing PMI (Jul) 50 50
14:00 US ISM Prices Paid (Jul) 49.6 47.9
14:00 US ISM Manufacturing PMI (Jul) 52.0 51.7

Today's Market Call

  • SVS expects the FTS100 to open around 10 points lower this morning.
     
  • The UK FTSE 100 closed 60 points higher yesterday with sterling strengthening slightly after four days of declines. Overnight the new Chancellor announced additional cash injections in preparation for a ‘No deal Brexit’ and the rhetoric that the UK will leave in October no matter what shows no signs of abating. On the companies front, Aston Martin (AML.L) continues to decline since its IPO at £19 a share (down >75%) with Taylor Wimpey (TW..L) shares losing c.5% of their value despite forecasting double digit dividend yields for both FY19 and into 2020.
     
  • US markets closed 334 points lower yesterday  after the Fed cut interest rates by 25bps (0.25%) however Powell then went on to say that there would not be a series of cuts which appeared to disappoint the markets. The first rate cut in eleven years was widely expected but Trump continues to apply pressure for apparent lost growth due to his perceived eagerness for historical rate rises.
     
  • Asian markets traded lower overall  with investors digesting the news that US-China trade talks will now resume in September on the back of disappointing Fed rate cuts. Investors should watch closely the Democrats candidate selection process which could add further impetus for a deal to be done early and may make Trump give concessions in a bid to form a positive platform for his 2020 election campaign.
     
  • In the UK expect many interim company updates  including Convatec (CTEC.L), British American Tobacco (BATS.L), Barclays (BARC.L), Rio Tinto (RIO.L) and Intertek Group (ITRK.L). In the US watch for quarterly earnings from ABIOMED Inc., Cigna Corp., DuPont de Nemours Inc. and Wesco International.
     

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