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It’s a cautious market welcome to a US tax reform framework, details still lacking (especially for individuals) and no clarification on how the whole thing will be paid for without increasing the national debt. Plus we’ve been here before with Trump reform (healthcare, infrastructure, deregulation), with next to nothing to show for it, almost a year since the election and 8-month since he took office. Progress, perhaps, but the proof’s in the cutting.
The UK UK 100 is flat as positive contribution from oil majors (oil price rally), Banks (tighter US/UK monetary policy) and internationally-exposed (weaker GBP) are countered by losses from Tobacco, Telecoms & Consumer staples (defensives shunned), CCL (higher oil price), GLEN (metals down on stronger USD) and NG (rate rise sensitive). German’s DAX is outperforming, thanks to gains for Banks (US tax reform, tighter monetary policy) and Thyssenkrupp (broker upgrade), offsetting losses for BMW, Merck (trading update) and Lufthansa (tech probs).
The UK Index 100 holds a rising wedge pattern 7290-7330. The DAX 30 extends its bullish pattern to test 12700. Dow Jones Futures found support at 22320 after pullback from 22360. Gold has bounced from the $1280 floor of a falling channel.
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The UK Index 100 holds a rising wedge pattern 7290-7330, international components benefiting from a weaker GBP but commodities-sensitive names struggling with fresh USD strength (Fed tightening, US tax reform).
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 extends its bullish pattern (inverse H&S reversal) to test 12700, helped by USD strength weakening the EUR to the benefit of German exporters.
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 found support at 22320 after pullback from 22360.
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 the $1280 floor of a falling channel, hindered by a stronger USD, Fed tightening and risk appetite amid optimism about US tax reform.
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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