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The UK Index has made a poor start to the week as China’s talk of retaliation to US trade tariffs increases worries about a global trade war. Whilst financials welcome some M&A among the challengers (less players, less competition), the big drag on the index derives from defensive heavyweights, perhaps those most at risk of unwelcome trade barriers. GBP remains weak, but not helping the index today.
Contributors: UK 100 -30pts, dragged lower by DGE/AZN/GSK/RR/RB/CPG (profit-taking), BATS (continued sell-off), GLEN (trade war fears) and SHP (Takeda shares -1.35%). Insufficient help from AV (M&A spec; Allianz?), VOD (support) and BP (oil off lows ahead of OPEC).
Technicals: The UK 100 has extended last week’s reversal from 7800, to test 7600, just above late May lows of 7593.
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The UK 100 has extended last week’s reversal from 7800, to test 7600, just above late May lows of 7593.
Watch levels: Bullish 7630, 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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