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The UK’s UK Index index of bluechip shares trade highs of the day, extending its breakout beyond late Feb highs. This comes courtesy of dovish commentary from Bank of England Governor Carney late yesterday, suggesting mixed macro data meant that a May rate hike wasn’t a certainty, as markets are implying. This extended GBP/USD’s retreat to 6-month rising support (GBP/EUR back to late March lows) to give the UK Index ‘s many internationally-exposed members another boost. BoE member Saunders has helped Sterling off its lows, with a reiteration of his hawkish views, but this isn’t hindering the index.
UK 100 +15pts thanks to contributions from HSBC/STAN (Asia exposure, results early May), RDSb (higher oil, weaker GBP), BATS/IMB (Bounce after Phillip Morris-inspired declines, weaker GBP), GSK (weaker GBP, sector M&A), ULVR (bounce post results, benefiting from RB woes?), Miners (weaker GBP, metals off lows), CRH (considering US business listing, share buybacks). Weighing on the index are RB (disappointing Q1 update), SHP (M&A uncertainty) and RR.
The UK Index 100 is holding yesterday’s breakout above 7340 late Feb highs, keeping open the door for a rally towards 7400, retracing yet more of the late Jan/early Feb correction.
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The UK Index 100 is holding yesterday’s breakout above 7340 late Feb highs, keeping open the door for a rally towards 7400, retracing yet more of the late Jan/early Feb correction.
Watch levels: Bullish 7370 (highs of day), Bearish 7360 (lows of last hour)
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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