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Global equities are making a cautious start to the new quarter with mixed transatlantic index performance at odds with a positive Asian close. Big corporate moves are thin on the ground and after a busy prior week geopolitical concerns have cooled. However, event risk looms large in the form of Fed minutes, the Trump-Xi meeting and Friday’s US jobs report.
The UK UK 100 is being driven south by Barclays & Prudential (RBS mounting legal costs, US deregulation doubts), FRES (Silver prices found resistance), ITV (giving up some of Friday’s M&A speculation gains) and AstraZeneca (US deregulation doubts). These offset assistance from BP and Shell (oil rebound), GSK (new CEO started), Reckitt Benckiser (strategic review of foods unit) and CRH (lingering US optimism).
Germany’s DAX outperforms thanks to EUR weakness due to political concerns, weak growth and negative rates. This is helping exporters while Linde (US merger on-track) and HeidelbergCement (lingering US growth optimism) easily offset standout 2% losses for Deutsche Bank (RBS legal costs; Eurozone political jitters).
The UK Index 100 remains under the cosh at 7320, but rising support looms. The DAX 30 has made a bullish break above 12300 that could see it revisit April 2015 highs of 12415. Dow Jones Futures at 20675 trade within 25pts of a breakout. Gold is tracking back from falling highs resistance at $1250.
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The UK Index 100 remains under the cosh at 7320, but rising support looms.
Watch levels: Bullish 7335, Bearish 7315
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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The DAX 30 has made a bullish break above 12300 that could see it revisit April 2015 highs of 12415. Note the overbought RSI.
Watch levels: Bullish 12370, Bearish 12345
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Dow Jones Futures, at 20675, trade within 30pts of a breakout.
Watch levels: Bullish 20,690, Bearish 20,675
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Gold is tracking back from falling highs resistance at $1250, although it remains above the 200-day moving average.
Watch levels: Bullish $1247, Bearish $1244
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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