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The UK 100 positive, rebounding after plumbing June’s lows on Wednesday. Even with 12 of UK 100 components going ex-dividend today (taking ~17 points off the index), investors are looking to recover yesterday’s losses on the back of stronger commodity prices and positive developments in the US-China trade war story that saw China prepare a delegation to Washington to discuss trade dispute settlement.
Weaker USD and higher metals prices are even helping some Miners that went ex-div to break even (Anglo American flat on the day in spite of paying 2.4% dividend)
Contributors: UK Index +50pts, helped by RDSB/BP (weaker USD, oil prices rebounding), BATS/CPG/CRH/PRU (rebound), GLEN/RIO/BLT (weaker USD, higher metals prices) and BARC (risk appetite, broker upgrade). On the opposite side of the index are EVR/RB/LLOY/HSBA/LGEN/AV/SLA (ex-div), KGF (disappointing results), INF (broker downgrade), AZN/ADM (profit taking).
Technicals: The UK 100 is rebounding after Wednesday’s sell-off, testing late July lows
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The UK 100 is rebounding after Wednesday’s sell-off, testing late July lows
Watch levels: Bullish 7600, Bearish 7475
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