This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities retain a solid bullish bias. Unusual versus traditional reluctance to take on risk before a US jobs report. Probably because September’s NFP figure is likely to be a meaningless hurricane-induced aberration, potentially also resulting in a sharp mean-reversion for October. With unemployment holding around lows , the real focus will be on wages growth. If this can hold at 2.5% annually, it supports recovering consumer inflation (and stable core), merely bolstering the likelihood of a Fed rate hike in December. Which markets have already priced in a 70% probability of.
The UK’s UK 100 trades highs of the day as BATS/IMB/GSK (weak GBP), RDSb (oil bounce) and BT (bounce) overcome losses for LLOY (slower UK labour cost growth, UK political uncertainty, lower chance of BoE rate hike), CRH (rival bid for Ash Grove Cement), ULVR (invited bids for margarine & spreads), STAN (broker downgrade) and easyJet (results, weak GBP).
The German DAX is flat as gains for ProSiebenSat and Autos (weak EUR vs USD, Merc sales, BMW invest in R&D) are offset by losses for ThyssenKrupp (technicals, closed below 200-day MA), Deutsche Post (Amazon threat) and Commerzbank.
The UK Index 100 has broken above 7510 falling highs resistance. The DAX 30 is back from 13000, but found support at 12970 in its up channel. Dow Jones Futures are flirting with 22800 within a bullish flag towards 22900. Gold remains hindered by $1270 after yesterday’s breakdown. Now in a bearish flag?
Click below to expand sections for more detailed analysis
The UK Index 100 has broken above 7510 falling highs resistance. Can it make it all the way to 7600?
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 back from 13000, but found support at 12970 in its up 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.
Click here for help with Support & Resistance Click here for help with technicals
Dow Jones Futures are flirting with 22800 within a bullish flag towards 22900.
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 hindered by $1270 after yesterday’s breakdown. Now in a bearish flag? US dollar strength is hurting along with equities pushing higher, sappig demand for safe havens
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