This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
European equities are positive to differing degrees. The UK UK Index needs a catalyst to escape this week’s range, Germany’s DAX is flirting with a bullish breakout on Autos-friendly rhetoric from Merkel and Dow Jones futures are testing their highs of the week before investors return from the Labor day long weekend. Sentiment is positive despite ongoing geopolitical issues, investors further demonstrating their thick skin. Helping out is a combination of M&A from both sides of the Atlantic, stable macro data in the Eurozone and continued gains for metals and oil.
The UK UK 100 is flat as the positive contribution from BP & RDSb (oil up), SHP, AZN & GSK (continued bargain hunting), BHP & GLEN (metals rally), VOD & DGE (defensive) is countered by a negative impact from RB (exec departure woes of yesterday), HSBC (Asia exposure) and FRES (Gold rally stalled; USD stronger). Germany’s DAX outperforms markedly (+0.7%) thanks to gains for Autos (+1.5%; Merkel said diesel needed as bridge to electric) and Merck (+3%; considering sale of $1bn consumer health unit).
The UK Index 100 is 7400-40 rangebound, awaiting a catalyst for a break. The DAX 30 is flirting with a bullish breakout at 12200. Dow Jones Futures sit within what may be a bullish ascending triangle to 22000 or better. Gold has pulled back from highs to test $1330 for support.
Click below to expand sections for more detailed analysis
The UK Index 100 is 7400-40 rangebound, awaiting a catalyst for a break. RSI neutral
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 flirting with a bullish breakout at 12200.
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 flat, unmoved from yesterday’s narrowing 21930-50 range. Note RSI stuck below neutral.
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 have pulled back from highs to test $1330 for support.
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