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The UK Index is on the back-foot despite positive messages from the US-NK summit in Singapore, albeit off its lows thanks to GBP strength curtailed by Parliamentary debate and vote on the Brexit Bill. As always, actions speak louder than words and the tangible results of Trump’s agreement with Kim are yet to materialise. USD found some support ahead of tomorrow’s Fed policy update (hike priced in, outlook more significant) and US inflation data later this afternoon.
Contributors: UK 100 -20pts, held back by Energy (lower oil), Miners (stronger USD, metals off highs), BATS/DGE (stronger GBP), AZN (drug trial failure). Offering some support is a mix of financials and defensives, including HSBA (Asia exposure), RB (defensive), GSK (pref. over AZN), PRU (breakout), CNA/BT (rebound)
Technicals: After reversing from 7770, the UK 100 has bounced from 7705 to hold the upper half of its 7640-7770 channel
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After reversing from 7770, the UK 100 has bounced from 7705 to hold the upper half of its 7640-7770 channel
Watch levels: Bullish 7735, Bearish 7700
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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