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The UK 100 extends its retreat from fresh record highs (7900), to revisit the floor of an 8-week rising channel (7810) on a revival of USD strength (hurting oil/energy, metals/miners), alongside geopolitical concerns (US-China trade talks, Italian PM, NK summit). It is also in spite of yet more soft UK economic data (inflation and house prices) which has sent GBP to its lowest since December; normally something which would flatter the index.
Contributors: UK Index -50pts, pushed lower by Energy (strong USD, oil off highs), Miners (strong USD hurting metals), HSBA (Asian exposure, pref. for STAN after M&A spec.), PRU/IAG/AZN (profit taking) and BARC (M&A spec.). Pushing in the opposite direction are BATS/IMB/RB (defensives, weak GBP), STAN (M&A), MKS (FY profits down, but top end of consensus range) and DGE (momentum, weak GBP).
Technicals: The UK 100 is holding the floor of its 8-week rising channel (at 7810) and still above January’s 7803 highs.
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The UK 100 is holding the floor of its 8-week rising channel (at 7810) and still above January’s 7803 highs.
Watch levels: Bullish 7830, Bearish 7803 (Jan 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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