This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The UK UK Index trades near highs of the day, thanks to yet more GBP weakness (more so vs USD than EUR) in the wake of disappointing UK Retail Sales for March (bad weather to blame) and a brace of House of Lords defeats for the government on Brexit consultation. Higher Oil and Metals prices continue to support sentiment towards Commodity-sensitive resources stocks, along with a drip-feeding of M&A news.
UK 100 +15pts thanks to outsized contributions from STAN/HSBC (Asia exposure, positive US Banks results, own results in May), SHP (M&A hopes), RDSb (higher oil, weaker GBP), WPP (Publicis results, relief after Sorrel?), DGE (weaker GBP, Pernod + Remy Cointreau results), AZN (Novartis results, drug approval) and select Miners (higher metals & oil). Aside ex-dividends (LLOY, SLA, BAES), the only real drag stems from ULVR (Q1 sales) and NG (still pausing after rally).
The UK Index 100 is holding yesterday’s breakout above Monday’s 7317 highs, testing the ceiling of a 7317-7335 range and thus showing appetite for another breakout that would open the door to a rally towards rising April resistance around 7400.
Click below to expand sections for more detailed analysis
The UK Index 100 is holding yesterday’s breakout above Monday’s 7317 highs, testing the ceiling of a 7317-7335 range and thus showing appetite for another breakout that would open the door to a rally towards rising April resistance around 7400.
Watch levels: Bullish 7340, Bearish 7315
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