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The UK Index is in the red, albeit off session lows, after market sentiment soured on President Trump criticising the Fed for hiking rates and threatening to go ‘whole hog’ on imposing tariffs on all $500B of Chinese imports to the US, further inflaming global trade tensions and putting at risk central bank independence. USD weakness is a hindrance to UK Index ‘s international cohort, while ratcheting of US trade threats is damaging China-exposed Miners.
Contributors: UK Index -15pts, pressured by BP/RDSB (weaker oil, profit taking), AZN/PRU/SHP (profit taking), HSBA (China trade worries, heavyweight), GSK (stronger GBP, negative momentum), VOD (negative momentum) and BARC (Trump’s Fed criticism). Providing some minimal support to the index are BATS/IMB (defensives, read-across from Philip Morris results) and ULVR (defensive).
Technicals: The UK 100 has pulled back for a test of Tuesday’s lows, which puts at risk the week-long rising channel.
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The UK 100 has pulled back for a test of Tuesday’s lows, which puts at risk the week-long rising channel.
Watch levels: Bullish 7703, Bearish 7660
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