Thursday, 22nd June 2017

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Morning traders' note

Crude Oil sell off drags commodities lower

22 Jun 2017, by Henry Croft.

The morning note is a daily global markets overview for Thursday 22nd June 2017 from the analyst team at Accendo Markets, providing a bullet-point snapshot of what can be expected in financial markets today and overnight activity. The information is straight from the traders’ desks, with news and insights on equities markets, commodities, and forex.

FTSE100 currently -30pts at 7420



SHP +1.7%
FRES +1.0%
RRS +1.0%
TW. +0.6%


UU. -3.3%
ANTO -2.0%
AAL -1.6%
LGEN -1.6%



  • UK Oilers (BP, Shell, Cairn Energy, Premier Oil Tullow Oil) – Oil prices take another leg lower as prices reach contango (Wall Street Journal)
  • Gold Miners (Centamin, Hochschild Mining, Fresnillo, Randgold Resources) – Gold climbs overnight as US dollar weakness and US treasury yields flatten (Reuters)
  • UK Miners (Anglo America, Antofagasta, BHP Billtion, Glencore, Rio Tinto, Vedanta Resources) – Copper trades fresh 10-day high as US dollar eases, however gains capped on expectations of US rate hike and moderating Chinese demand (Dow Jones Newswires)
  • Barratt Developments – Names Jessica white as new CFO (Reuters)
  • Cairn Energy – Indian unit may be put up for sale to solve tax recovery proceedings (Reuters)
  • Firstgroup – To bid for West Coast partnership rail franchise (Reuters)
  • GlaxoSmithKline – Wins $235m in patent trial (Reuters)
  • Go-Ahead Group – To be shortlisted for Southeastern Rail franchise (Reuters)
  • Imagination Technologies – Apple supplier puts itself up for sale (Reuters)
  • Inmarsat – Announces Avianca to adopt its wifi services (Reuters)
  • Reckitt Benckiser – Senior note pricing announced (Reuters)
  • Saga – Announces it is well positioned to deliver strategic objectives (Reuters)
  • Shire – Receives EMA validation for Veyvondi drug (Reuters)
  • Stagecoach Group – To be shortlisted for Southeastern Rail franchise (Reuters)
  • Standard Life – Expects Aberdeen merger to be completed in August (Reuters)
  • Ultra Electronics – HY trading performance reported in-line (Reuters)
  • Wizz Air – Opens base at London Luton airport, its first in the UK (Reuters)



  • Crude oil prices fall to 10-month lows following comments from an unnamed OPEC member that further production cuts are unlikely, while prices reach contango (Reuters)

·         Copper touches 10-day high overnight however falls as investors book profits amid crude oil bear market (Reuters)

·         Gold continuing to rally as double bottom reversal emerges. Back to intersecting support at $1252 after $10 rally to overnight high of $1254 (Reuters)


Macro outlook:

  • In focus today will be the EU leaders meeting in Brussels. PM May will present the UK’s intentions for negotiations, including what her cabinet has billed as a ‘generous’ offer to protect the rights of EU citizens living in the UK after Brexit. This before she is escorted from the room to leave the remaining 27 members to discuss matters further. The PM’s visit is her first appearance before European contemporaries since the calamitous election campaign. Can she engineer some goodwill as the 18-month negotiating process kicks off?
  • Datawise, UK CBI Trends (11am) are forecast lower in June before largely flat US Jobless Claims (1.30pm). Thereafter, US House Price growth likely held up well in April while Eurozone Consumer Confidence (3pm), albeit still negative, improves a touch. Finally, both the US Leading Index (3pm) and Kansas Fed Manufacturing should post stronger growth for their latest month.
  • Speakers today include the Fed’s Powell (3pm) before outgoing BoE hawk Forbes (7pm). The former is a centrist, therefore the latter will be of more interest after a dovish BoE Governor Carney was yesterday outshone by Chief Economist Haldane turning hawkish, prescient as last week’s BoE vote was the closest to a hike since pre-crisis in 2007.


CFDs, spreadbetting and FX can result in losses exceeding your initial deposit. They are not suitable for everyone, so please ensure you understand the risks. Seek independent financial advice if necessary. Nothing in this article should be considered a personal recommendation. It does not account for your personal circumstances or appetite for risk.

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