This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Global equity markets are mixed heading into the afternoon, although the UK 100 is significantly outperforming its European peers, trading at a 3-week high following the release of UK Inflation data this morning. With the majority of prints coming in weaker than expected, as headline and core CPI readings hold steady, Sterling quickly pared initial gains to the benefit of the UK Index ‘s strongly weighted contingent of foreign earning stocks. This has helped to offset weakness in UK focused stocks as UK Retail Sales are reported to have dropped by their sharpest amount in 3 years, according to the BRC. Geopolitical uncertainty (Syria, North Korea) remains at the fore, buoying safe havens Gold and the Japanese Yen, while a c. 500,000 bpd disruption to Libyan Crude Oil supplies is helping to keep both Brent and US benchmarks stable around 5-week highs.
Leading the UK 100 today are rallies from predominantly USD-earning Asia-focused Bank HSBC, Miners RIO and GLEN, Exporters BATS and DGE and Oil major BP. Only 5 stocks are attempting to drag the index lower, including UK-focused RBS, PRU and SKY, alongside Pharmaceutical HIK (investor profit taking) and Retailer NXT (BRC sales disappointing). On Germany’s DAX, Deutsche Lufthansa is the only notable mover, up 4.8% as traffic increases 11% in March.
The UK Index 100 has overcome 2 levels of support and its march towards 7400, although is having some trouble breaking above the psychologically significant level. The DAX 30 is being hampered by falling highs resistance at 12200 after recovering from an early test of 12160 support. Dow Jones Futures are holding above rising support to 20650, however are failing to make a significant move further north. Gold is benefiting from fresh safe-haven demand to trade at a weekly high of $1257.50.
Click below to expand sections for more detailed analysis
The UK Index 100 has overcome 2 levels of support and its march towards 7400, although is having some trouble breaking above the psychologically significant level.
Watch levels: Bullish 7405, Bearish 7380
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
The DAX 30 is being hampered by falling highs resistance at 12200 after recovering from an early test of 12160 support.
Watch levels: Bullish 12205, Bearish 12175
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
Dow Jones Futures are holding above rising support to 20650, however are failing to make a significant move further north.
Watch levels: Bullish 20,680, Bearish 20,615
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
Gold is benefiting from fresh safe-haven demand to trade at a weekly high of $1257.50.
Watch levels: Bullish $1258, Bearish $1256
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
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research