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Equities are flat ahead of this evening’s Fed policy update, investors adopting their usual wait-and-see approach. However, with a rate hike seemingly off the table until year-end, and most expecting Yellen to fire the starting pistol on its balance sheet unwind (composition pre-announced), this may prove overly cautious.
Unless of course you see risk of a very hawkish message on rate rises. With data continuing to blow hot and cold, and Trump still struggling on policy/stimulus, the Fed would probably prefer to hold off until year end for more evidence that would allow it adopt such a tone. Another market tantrum is the last thing the Fed will want to be responsible for.
The UK UK 100 is flat as the positive contribution from GSK (drug trial), PRU (hurricane downgrade), RDSb (weaker GBP), KGF (trading update), BT and WPP offset the drag from Diageo (AGM trading statement), HSBC & BARC (Asian jitters after Trump aggression towards NK), LLOY (US rate rise) and mining pair RIO & GLEN (weak iron ore).
The German DAX is just offside as losses for both Deutsche Bank and Commerzbank, following UK and US peers lowers, outweigh gains for ThyssenKrupp (merger with Tata) and utility trio E.ON, RWE and Deutsche Tekelom.
The UK Index 100 bounce continues to struggle at 7290. The DAX 30 is holding its current up-channel at 12550. Dow Jones Futures have breached rising support at 22375 but remain in a tight up-channel. Gold has bounced from $1305, nearing falling highs at $1318.
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The UK Index 100 bounce continues to struggle at 7290. Doji candlestick implies indecision. Breakout or back to the lows. Note RSI falling highs.
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 is holding its current up-channel at 12550. Pause before another up-leg. Or topping out?
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 have breached rising support at 22375 but remain in a tight up-channel. RSI holding above 50 is bullish
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 has bounced from $1305, nearing falling highs at $1318. RSI back from oversold
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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