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European equities are in recovery mode having initially opened lower after German coalition talks fell through late last night. Both the UK’s UK Index and the German DAX have bounced from session lows as investors digest not only what the future of the German government will end up looking like (first ever election re-run needed or a Merkel-led minority government?), but also how the collapse of negotiations in Berlin will affect those continuing in Brussels between the UK and the EU. The German President is expected to make an announcement at 1:30pm GMT. Meanwhile, US investors continue to digest to probability of US tax reforms being passed before year-end, needing Republican senators to overcome a multitude of hurdles to make their two seat majority count.
The UK Index has turned positive thanks to gains for European-exposed defensives, including ULVR, DGE and VOD (EUR bounce), while UK-focused Banks (UK Brexit bill offer to be increased), SKY (21st Century Fox M&A) and GSK also offer support. Weighing are HSBC (Chinese financial regulation changes), Shire (Roche positive drugs tests) and Miners (commodities lower).
Germany’s DAX is following suit thanks to gains for Prosibensat.1 (Commerzbank upgrade), Volkswagen (core brand/China investment), RWE (mulling €16.8bn Innogy sale) and Commerzbank (continued M&A speculation), while a range of heavyweight Defensive names weigh (EUR rebound).
The UK Index 100 has bounced from lows of 7350 to test Friday afternoon’s 7390 highs. The DAX 30 has also recovered from early lows to trade back above 13000. Dow Jones Futures have found support at 22,275 to maintain a shallow rising channel from last Wednesday’s lows. Gold is holding above a duo of support at $1290 after Friday’s breakout.
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The UK Index 100 has bounced from lows of 7350 to test Friday afternoon’s 7390 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 has also recovered from early lows to trade back above 13000.
Watch levels: Bullish 13,050, Bearish 12,890
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 have found support at 22,275 to maintain a shallow rising channel from last Wednesday’s lows.
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 is holding above a duo of support at $1290 after Friday’s breakout.
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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