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Equities remain under pressure from geopolitical tensions (albeit calmer) but are also being impacted by ex-dividends and macro data. The UK UK Index has broken lower following a disappointing trio of mixed UK Ind/Manuf Production, another Construction Output decline and a wider trade deficit. Germany’s DAX underperforms, also breaking lower, in spite of a weaker EUR, due to uninspiring corporate results.
The UK UK 100 derives most of its declines from an army of ex-dividends (incl. RDS, BP, DGE, LLOY, BT, RIO, GSK, AZN) while heavyweight HSBC pitches in with defensives (ULVR, RB and BATS) and GLEN & PRU are dragged lower after results. The only major helper today is Coca Cola HBC after profits rose on strong volume growth.
Germany’s DAX underperform,s despite a weaker EUR, as results from Henkel drag Consumer peers lower and the update insurer Munich Re weighs on a financials sector which is already suffering from an absence of appetite for risk.
The UK Index 100 has broken below 7450, extending its retrace towards the 7365 floor its 6-week rising channel. The DAX 30 has broken below hitherto August support at 12100. Dow Jones Futures continue to hold around 22000. Gold remains on course for a test of $1300 and completion of a bullish flag.
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The UK Index 100 has broken below 7450, extending its retrace towards the 7365 floor its 6-week rising channel.
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 broken below hitherto August support at 12100
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 continue to hold around 22000. Beware RSI now in bearish lower half.
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 remains on course for a test of $1300 and completion of a bullish flag.
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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