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The UK 100 is posting strong gains, making a bullish test of July’s 7782 highs. That said, looking at who’s in the driving seat, it isn’t a risk-on rally. It’s more to do with an extension of Sterling weakness as fears over a disorderly Brexit grow, offering a perverse benefit to the UK Index ‘s significant global exposure, especially defensives. Energy names remains strong as a result, despite Brent crude oil prices off this week’s highs, although many Miners are flat.
Contributors: UK Index +65pts, helped higher by HSBA (Asian exposure, heavyweight), RDSB/BP/BATS/DGE/IMB (momentum, weak GBP), PRU (results), Miners (Chinese trade data), ULVR/AZN/SHP/VOD (momentum, weak GBP). Dragging the index lower is PPB (trimmed FY guidance) and GLEN (missed H1 expectations).
Technicals: The UK 100 is testing July’s 7782 highs, poised for a challenge of June’s 7794 highs.
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The UK 100 is testing July’s 7782 highs, poised for a challenge of June’s 7794 highs.
Watch levels: Bullish 7794, Bearish 7770
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