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The UK 100 is rallying, extending last week’s second half rebound (despite Sterling strength), with investors clearly eager to make up for last week’s losses, happy to disregard trade wars threats. With political tensions in Italy and Spain resolved, and with US-NK summit preparations proceeding apace, traders have decided to get out on the right side of the bed, looking on the brighter side of trading life and eyeing the UK Index ‘s 22 May 7903 record high. That said, we note that many of the UK Index ‘s biggest drivers are large-cap defensives rather than genuine risk assets.
Contributors: UK Index +60 pts, with strong support from Banks (sector M&A), DGE/BATS/ULVR/RB/VOD (defensives, rebound), GSK/AZN (uptrend), Miners (weak USD, helping metals), NG (ex-div recovery), IAG (low oil). Providing minimal downside are SHP (Takeda share price down overnight) and SKG (M&A pressure, no bid from International Paper?).
Technicals: The UK 100 is in an uptrend, following a week-long rising channel.
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The UK 100 is in an uptrend, following a week-long rising channel.
Watch levels: Bullish 7770, Bearish 7693.
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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