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The UK Index has made a disappointing start to the week, extending Friday’s reversal towards 3-week rising support. Weighing on investor sentiment is mixed China data overnight where Q2 GDP slowed as expected, Industrial Production slowed more than forecast but Retail Sales growth actually accelerated. Traders are also awaiting the outcome of the Trump-Putin summit in Helsinki, more Q2 results from US Banks and watching Brexit-induced rumbling in Westminster.
Contributors: UK Index -55pts, pushed lower by BP/RDSB (oil turned down), Miners/HSBC (mixed China data), GSK/AZN/BATS/DGE (strong GBP, profit taking), VOD/PRU/ULVR (momentum) and HL (FCA report on exit fees). Providing minimal support are CRH/STAN (rebound), BARC (momentum) and BA (Farnborough Air Show).
Technicals: The UK 100 has extended a 120pt reversal towards 3-week resistance at 7590.
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The UK 100 has extended a 120pt reversal towards 3-week resistance at 7590.
Watch levels: Bullish 7615, Bearish 7590
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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Prepared by Michael van Dulken, Head of Research