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The UK 100 is lower, having pulled further back from July highs. The real culprits are the Miners giving up most of yesterday’s gains to understandable profit taking amid a waning of the perceived benefits of China stimulus to offset trade war concerns. Banks are following suit as risk appetite eases ahead of Trump’s pivotal trade meeting with EU’s Juncker. Some disappointing results are also adding to negative momentum, with lots more reporting tomorrow.
Contributors: UK Index -50pts, pressured by Banks (risk off, profit taking), RIO (broker downgrade, profit taking), GLEN/BLT (profit taking), RDSB/BP (lower WTI crude), VOD (results, negative momentum), AZN/BT (stronger GBP) and FRES (results). Offering meagre positivity to the index are GSK/III (results) and DGE (defensive).
Technicals: The UK 100 retreated from July’s 7741 peak for a test of 2-week rising support around 7653.
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The UK 100 retreated from July’s 7741 peak for a test of 2-week rising support around 7653.
Watch levels: Bullish 7683, Bearish 7645
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