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Equities are mixed despite resolution of the US government shutdown, bolstering the fact that geopolitics now has little bearing on investor sentiment, immune to threats that come and go (Brexit, Trump, North Korea, Elections). The Davos forum is underway, German ZEW surveys beat forecasts and corporate results are skewed positive. Commodity price weakness amid USD strength is trumping GBP weakness to ensure the UK Index underperforms.
The UK Index has retraced early gains to trade negative, dragged lower by Miners (stronger USD, metals lower, copper drop), HSBC (continued profit-taking), WPP (broker downgrades) and NG (Ofgem Hinkley Consultation), overpowering the positive contribution from an array of defensives (ULVR/BATS/DGE; GBP off highs), SKY (still optimistic on acquisition by FOX), STAN (preferred vs HSBC), VOD (technical bounce, sector strength), CRH (GBP off highs), GSK (sector M&A), IAG/EZJ (EZJ strong Q3 results, IAG’s Niki acquisition thwarted).
Germany’s DAX outperperforms on EUR weakness, with two-thirds of members in the green, led higher by Fresenius, Deutsche Boerse, Bayer, Lufthansa and SAP, with minimal drag from Infineon.
The UK Index 100 has pulled back to 7710 rising support. The DAX 30 has retreated from breakout to 13600 fresh record highs. Dow Jones Futures have found support at yesterday’s 26150 breakout. Gold is struggling to overcome $1338 due to the UDS having found support.
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The UK Index 100 has pulled back to 7710 rising support.
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 retreated from breakout to 13600 fresh record 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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Dow Jones Futures have have found support at yesterday’s 26150 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
Gold is struggling to overcome $1338 due to the USD having found support.
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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