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The UK 100 is flat, lagging peers, despite US-EU trade war fears subsiding overnight. Possibly because the US and China remain at loggerheads. Investors are also dealing with an element of indigestion following a plethora of corporate updates (one of the busiest mornings we can remember) that has made for mixed reading, with share buybacks overshadowed by results misses and disappointing outlooks. Defensives helping more than high-beta/growth stocks.
Contributors: UK Index flat, in a tug-of-war between positive contributors like BATS/AZN/REL/SMIN (positive results), IMB (rebound, defensive, weaker GBP), IAG/PRU/VOD/RBS (rebound) and BT (momentum) on one side, and the negative influence of RDSB (results miss), DGE (FX outlook), GSK (profit taking, drug refusal), SSE (ex-div), CPG (results/outlook), SDR (AUM flat) and BP (read-across from RDSB).
Technicals: The UK 100 is holding an 8-day rising channel, but remains under pressure from 2-day falling highs. Which way will it break?
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The UK 100 is holding an 8-day rising channel, but remains under pressure from 2-day falling highs. Which way will it break?
Watch levels: Bullish 7685, Bearish 7640
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