This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Global bourses have fallen just below breakeven as the investor trade-off between safe haven assets and riskier equities continues. While geopolitical tensions may have come off the boil, markets have not yet discarded the cautious outlook that led to yesterday afternoon’s sell off. Crude Oil prices continue to rise on optimism that Saudi Arabia will convince other OPEC members to extend their production cuts, however weaker metals prices on account of slowing Chinese Producer inflation are capping gains for commodities producers. All eyes will now be on opening bells in New York to see if US markets’ risk-off sentiment continues into a second day.
The top contributors to the UK’s UK Index 100 so far today are RB (Defensive demand, rising GBP), RR (Daimler Q1 results readacross), BP (rising Oil prices) and Defensives DGE, CPG, BA and NG. At the other end of the spectrum, the greatest weights on the index are TSCO (FY pretax profit -39%) and select Miners RIO, GLEN and BLT (lower Copper/Iron Ore prices). Auto manufactures Daimler, VW and BMW are leading Germany’s DAX slightly higher, offsetting the negative impact of Deutsche Boerse.
The UK Index 100 has fallen below a duo of rising support around the 7370 mark, having failed to overcome 7400 for the second session in a row. The DAX 30 has fallen back from a strong opening test of falling highs resistance at 12240 to fall back towards rising support at 12125. Dow Jones Futures are off their best levels having tested 20675 falling highs resistance, falling towards rising support at 20620. Gold is trading slightly lower after reaching a fresh 5-month high of $1280 overnight.
Click below to expand sections for more detailed analysis
The UK Index 100 has fallen below a duo of rising support around the 7370 mark, having failed to overcome 7400 for the second session in a row
Watch levels: Bullish 7370, Bearish 7335
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 has fallen back from a strong opening test of falling highs resistance at 12240 to fall back towards rising support at 12125.
Watch levels: Bullish 12180, Bearish 12120
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 off their best levels having tested 20675 falling highs resistance, falling towards rising support at 20620.
Watch levels: Bullish 20,685, Bearish 20,610
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 trading slightly lower after reaching a fresh 5-month high of $1280 overnight. Note RSI reaching overbought level
Watch levels: Bullish $1275, Bearish $1268
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