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European equities are positive for a third consecutive day as investors continue to exhibit risk-on sentiment following the abatement of last week’s US-North Korean tensions. UK unemployment falling to a 42-year low and Wage growth beating expectations (albeit remaining below inflation) have capped the UK 100 by way of the perverse translational effect of GBP strength on earnings from abroad, whilst subsequent EUR weakness compounded by the US dollar rebound sees German equities outperform.
Helping the UK Index higher are Miners (base metals higher; Zinc 10-year high), Oilers (bullish US industry inventories report), DGE and HSBC, whilst meekly holding the index back are Admiral (weak margins; profit taking), sector peer DLG and BT (technical weakness). Germany’s DAX outperforms as its heavyweight exporters (led by Continental & Siemens) benefit from the weak Euro.
The UK Index 100 is consolidating above resistance turned support at 7420. The DAX 30 has extended its rally after breaking out from 12220 falling highs resistance. Dow Jones Futures are back knocking on the door of 22060 resistance. Gold remains under pressure having fallen back towards $1270.
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The UK Index 100 is consolidating above resistance turned support at 7420 in what could be a bullish pennant pattern towards 7480.
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 extended its rally after breaking out from 12220 falling highs resistance. Note the emerging bullish flag pattern with potential to rally to 12450.
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 are back knocking on the door of 22060 resistance.
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 remains under pressure having fallen back towards $1270.
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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