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The UK Index is making a bullish test of July highs thanks to Miners getting a boost from news of fresh China stimulus measures to boost growth, offsetting simmering trade war fears between it and the US. Banks are also higher after some positive results on the Continent. Dollar index retreating from 95 handle is typically a nuisance for the UK Index , but the resulting GBP strength is not enough to overpower positive market sentiment.
Contributors: UK Index +70pts, supported by Miners (weaker USD, China stimulus), HSBA (Asia exposure, risk appetite, heavyweight), BATS (heavyweight), RBS/STAN/LLOY/BARC/AV (rebound, risk appetite), PRU/DGE (momentum), AZN (drug rights sale) and BT (Openreach news). Providing token resistance are NG (negative momentum, DRX read-across) and GSK (profit taking).
Technicals: The UK 100 is testing July highs for a potential challenge to 7794 June highs.
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The UK 100 is testing July highs for a potential challenge to 7794 June highs.
Watch levels: Bullish 7779, Bearish 7623
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