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Equities are back positive thanks to overnight progress on the topic of US tax reform that has revived investor appetite for risk in the wake of a two-day wobble. Increased confidence in US growth, and thus further Fed rate hikes, has sent USD higher to the detriment of GBP, EUR and, of course safe-haven Gold, making for a positive final session for the UK UK Index and German DAX, while futures suggest US indices will follow suit this afternoon.
The UK UK 100 is up thanks to positive contributions from Banks (US tax reform supportive of Fed rate hike), BATS/CRH (US exposure, weaker GBP), RIO/GLEN/ANTO (base metals rally, despite USD strength) trumping the drag from ULVR/RB (still digesting poor results), BP (strong USD, lower oil price) and ABF (profit taking from 18M highs).
The German DAX is up thanks to gains for Deutsche Boerse (reports considered merger with MSCI), Deutsche Bank & Munich Re (tax reform supportive of higher rates), Lufthansa (preview ahead of Q3 results), Siemens (GE results disappointed in US) and HeidelbergCement, overpowering losses for Commerzbank (less US exposure), SAP (still digesting results) and Vonovia (property prefers loose monetary policy).
The UK Index 100 sits 7525-7555 with an upside bias. The DAX 30 holds its uptrend recovery from 12920. Dow Jones Futures could be in the midst of a bullish flag pause before another rally to 23050. Gold has pulled back to $1280 amid tax cut hopes inspired USD strength, maintaining appetite for risk over safe havens.
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The UK Index 100 sits 7525-7555 with an upside bias.
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 holds its uptrend recovery from 12920, intersecting support now back in play.
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 could be in the midst of a bullish flag pause before another rally to 23050.
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 pulled back to $1280 amid tax cut hopes inspired USD strength, maintaining appetite for risk over 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
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