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The UK Index has extended its recovery, as investors re-discover their inner bull, retracing all of the week’s trade war inspired declines. With oil back on the ascent thanks to a surprise API inventory drawdown late last night, UK Index energy names are being offered a short-term reprieve before what would appear to be an almost-inevitable OPEC oil production hike (rolling back on the production cuts). All the while, Asia-oriented stocks (Miners, HSBC) are heaving a sigh of relief that US-China reciprocal tit-for-tat tariff threats are a way off becoming tangible policy.
Contributors: UK 100 +90pts, boosted by HSBA/Miners (China exposure), BATS/IMB/ULVR/RB (defensives, weaker GBP), Energy (higher oil), Banks/VOD (rebound), GSK/AZN (defensives, rebound). Providing very limited resistance are BKG (profits warning), NXT/MKS (retail sector malaise), HL (profit taking), SSE (broker downgrade), BDEV/TW (spill-over from BKG).
Technicals: The UK 100 is making a bullish test of 7700, trying to regain last Thursday’s 7794 June high.
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The UK 100 is making a bullish test of 7700, trying to regain last Thursday’s 7794 June high.
Watch levels: Bullish 7705, Bearish 7670
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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