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The UK 100 is offering muted positivity into the weekend, as the effect of the weak USD is helping metals and energy prices rebound from recent lows and hence helping UK Index ‘s considerable resource sector (20% of the index). Disappointing UK mortgage approvals data is depressing most of the Housebuilders (July approvals below 40K and June’s approvals revised lower), not not enough to nudge the index into negative territory, with UK 100 Housebuilders together contributing less than -1.3 to the index today due to their relatively low weighting.
Contributors: UK Index is +9pts, boosted by SHP (drug approval), GLEN/RIO/AAL/BLT/ANTO (weak USD, metals prices higher) and RDSB/BP (weak USD, oil prices higher). Containing the advance are BATS/IMB (heavyweight, negative momentum, strong GBP) and HSBA (Asia exposure, trade war fears).
Technicals: The UK 100 is maintaining the indecisive sideways movement in a 5-day narrowing pattern.
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The UK 100 is maintaining the indecisive sideways movement in a 5-day narrowing pattern.
Watch levels: Bullish 7600, Bearish 7535
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