LONDON MARKET Closing Update 17 August 2017

Market Commentary
UK Markets started the day on the back foot with Ex dividends taking 10 points off the leading index.
UK retail sales came in at a gain of 1.4% missing estimates and significantly lower than the 2.8% gain
from June leading analysts to predict that the BOE would most likely hold off on any rate rises in th
short term.
Bank stocks were weaker after the Fed minutes also pointed to a more dovish stance of interest
rates. US initial jobless claims fall by more than expected Jobless claims fell to a near six-month low
according to data from the Labor Department however this failed to impact UK stocks which slowly
drifted lower in the afternoon session to close at 7387.
Nick Rennie Chartered MCSI
Today's Closing Update
U.S. Shares were lower as investors fail to get excited by quarterly reports from big names like
retailer Wal-Mart and technology bellwether Cisco Systems.

European and U.K. Shares were slightly lower, with bank shares dragged down by doubts
about another U.S. interest rate hike in 2017.

UK retail sales increased in July as stronger spending on food offset a fall in the purchase of
other goods, according to official figures. The volume of sales grew by 0.3% compared with
June, the Office for National Statistics (ONS) said. However, the figure for June's retail sales
growth was revised down from 0.6% to 0.3%. The latest data shows that the volume of food
sales rose by 1.5% in July, having fallen by 1.1% in June. The ONS said all other sectors saw a
fall in volume sales apart from household goods. Ole Black, ONS senior statistician, said that
overall it was a "relatively subdued picture" in retail sales".

As the fallout between corporate leaders and President Donald Trump over his handling of white
supremacist violence in Charlottesville worsened, Trump said he is scrapping two business
advisory councils that were running out of strength. Eight members of the President's American
Manufacturing Council resigned since Sunday over the issue, while all members of the Strategic
and Policy Forum agreed to quit the group Wednesday in condemnation of Trump's defiant
remarks about violence at the Charlottesville white nationalist rally. And within hours, Trump
tweeted: "Rather than putting pressure on the businesspeople of the Manufacturing Council &
Strategy & Policy Forum, I am ending both. Thank you all."

BHP Billiton has approved a $2.54bn investment to extend the Spence copper mine life in Chile
by at least 50 years. The board had approved the spending for the Spence Growth Option
project, with chief executive officer Andrew Mackenzie saying that execution of option "will create
long-term value for shareholders in one of our preferred commodities". "The project significantly
extends the life of our Spence operation and unlocks the potential of the large, quality resource."

One of the most widely-followed gauges for the US jobs market revealed it continued to be in
robust health. Initial jobless claims plummeted by 12,000 over the week ending 12 August to
reach 232,000, according to the Department of Labor. Economists had forecast a reading of
240,000. Meanwhile, the four-week moving average, which aims to smoothe out the volatility in
the figures from one week to the next, dipped by 500 to 240,500. Secondary unemployment
claims, those which are not filed for the first time and referencing the week ended on 5 August
fell by 3,000 to 1.953m.

European Central Bank policymakers raised concern over the appreciation of the euro in July,
pointing out the risk of the exchange rate overshooting in the future, and stressed that the
favorable financing conditions are still supported by the massive stimulus. "Concerns were
expressed about a possible overshooting in the repricing by financial markets, notably the foreign
exchange markets, in the future," the bank said in the minutes, which it calls "the account", of the
July 20 rate-setting session released today.

Oil prices steadied after U.S. data showed a fall in crude stockpiles but also an increase in
production, taking U.S. crude output to its highest in more than two years.

Gold continued higher, boosted by haven demand after U.S. President Donald Trump disbanded
two business councils and minutes from the Federal Reserves meeting last month pointed to
concerns over sluggish inflation.
Market Close - 4:35pm
Market Index Change % Change
Market Index Change % Change

UK 100 7387.9 -45.2 -0.6%

UK 250 19,773.1 -86.2 +0.4%

GER 30 12,208.7 -55.1 -0.5%

FRA 40 5,151.1 -25.5 -0.5%

U.S. 30 21,916.79 -108.08 -0.5%

U.S. 500 2,453.3 -14.8 -0.5%

OIL (BRENT) 50.74 +0.47 +0.9%

GOLD 1,284.55 +1.44 +0.1%

UK Major Risers & Fallers - 4:35pm

Company Price Change % Change

Fresnillo 1566 +58 +3.8%

Johnson Matthey 2820 +66 +2.4%

Hochschild 275.3 +15.9 +6.1%

Kingfisher 294.4 -13 -4.2%

Admiral Group 1993 -54 -2.6%

Hikma 1189.5 -139.5 -10.5%

Director Dealings
Company Commentary

Worldpay Worldpay Group said Ares Ltd, a vehicle connected to Chief Executive Officer of
the Global eCom division, Shane Happach, sold 550,000 shares at an average
price of 423.67 pence each

Reported Economic Data

Time/Date Previous Forecast Outcome

9:30am: U.K. Retail Sales m/m 0.6% 0.2% 0.3%

10:00am: European Final CPI y/y 1.3% 1.3% 1.3%

1:30pm: U.S. Unemployment Claims 244k 240k 232k

Interbank Spot FX Rates - 4:35pm

Pairing Rate % Change

GBP/USD 1.2887 -0.03%

EUR/USD 1.1743 -0.20%

GBP/EUR 1.0975 +0.18%

USD/JPY 109.9200 -0.25%

USD/CHF 0.9640 -0.19%

GBP/JPY 141.6330 -0.30%