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The UK 100 is higher, holding the rebound from July lows, as the weak UK service sector indicator and the BoE Governor Carney’s comments on “uncomfortably high” risks of hard Brexit sent the GBP to 2-week lows, thus flattering the UK Index ‘s internationally-exposed names. Risk on sentiment is prevailing after RBS reported consensus-beating results and plans to resume paying dividends (subject to fully resolving US legal issues) for the first time since its 2008 nationalisation.
Contributors: UK Index +45pts, helped higher by RBS/MNDI (results), HSBA/BARC/STAN (RBS read-across, risk on, rebound), GSK/BP/BLT (rebound), VOD/BATS (defensive) and RR (momentum after results). Offering minimum resistance are IAG (results) and BA/LLOY (negative momentum).
Technicals: The UK 100 bounced off July’s 7539 lows and is close to testing 7636 2-week support-turned-resistance level.
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The UK 100 bounced off July’s 7539 lows and is close to testing 7636 2-week support-turned-resistance level.
Watch levels: Bullish 7636, 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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Prepared by Michael van Dulken, Head of Research