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Global equities are mixed at the mid-point of the week, with clear divergence between North American and European bourses. US indices are set for a stronger open after Senate Republicans approve a final tax reform bill, however a re-run in the House is required later today after an eleventh hour amendment to remove two aspects violating strict budget rules. The UK’s UK 100 hovers around breakeven as Sterling continues to recover from yesterday’s lows, with the currency retreating only marginally on IMF revisions to UK growth, while the German DAX underperforms after CDU insiders suggest Chancellor Merkel will fail in her bid to form a grand coalition and will not stand in subsequent snap elections.
The UK UK Index is flat, having retreated from earlier highs, as a struggle between risers from the Mining and Pharmaceutical sectors (former on commodity strength via USD weakness, latter) as well as Mondi (Goldman upgrade), and losers including RDS (Italian corruption charges), FX-sensitive defensives BATS & HSBC (USD lower), ULVR & VOD (EUR lower), plus BT (Ofcom legal challenge defeat), NMC (post-results) and LLOY.
Germany’s DAX underperforms as key inflation data disappoints which, alongside US dollar weakness, sees losses for Adidas, Fresenius and Henkel overpowering significant gains for Deutsche Post (extending 1-month uptrend).
The UK Index 100 is narrowing between 7530-7550. The DAX 30 continues to retreat from Monday’s 13350 highs. Dow Jones Futures has recovered from yesterday’s lows of 24715. Gold is continuing to rally from its falling channel floor, breaking above $1265.
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The UK Index 100 is narrowing between 7530-7550. Breakout to all-time highs or breakdown?
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 continues to retreat from Monday’s 13350 highs, staying within a falling channel.
Watch levels: Bullish 13,200; Bearish 13,175
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 has recovered from yesterday’s lows of 24715.
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 continuing to rally from its falling channel floor, breaking above $1265.
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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