This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Global equity markets are on the front foot having recovered from yesterday evening’s lows, however remain a distance from early afternoon high. After US bourses pared early losses overnight, European equity markets have also recovered as investors continue to look out for further political developments concerning the UK election, Greece and President Trump. Sterling remains under pressure against the Euro, trading a fresh 11-week low this morning, however this is more due to institutional recommendations (HSBC calls for GBP/EUR parity) rather than politics. The translational benefit from the weak pound, alongside a crude oil price rebound following overnight bullish inventory data, has underpinned the UK Index above 7540, while a strong German Manufacturing PMI print sees the DAX continue its breakout from 2-week falling highs.
The UK Index outperforms this morning thanks to AZN (technical breakout), RDS (GBP/EUR weakness, Crude Oil recovery), European-focused Defensives DGE, ULVR, RB & VOD (election uncertainty, GBP/EUR weakness) and HSBA & BATS (US dollar off lows). Stocks capping gains include Miners GLEN & AAL (Iron Ore at 10-month lows), UK-focused Banks RBS & LLOY (Election uncertainty, slowing house prices) and ex-div stocks NG & TW.
The UK Index 100 is trading in a tight 7540-7553 channel. The DAX 30 is yet to overcome 12710 after yesterday’s breakout. Dow Jones Futures’ falling channel has met rising lows support at 21,000. Gold continues to narrow at $1266-67 having retreated from a 1-month high of $1270.5.
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The UK Index 100 is trading in a tight 7540-7553 channel. Breakout to all-time highs or break lower to test 7500?
Watch levels: Bullish 7555, Bearish 7535
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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The DAX 30 is yet to overcome 12710 after yesterday’s breakout. Can it build on early momentum for another challenge?
Watch levels: Bullish 12680, Bearish 12630
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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Dow Jones Futures‘ falling channel has met rising lows support at 21,000.
Watch levels: Bullish 21,025; Bearish 20990
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.
Click here for help with Support & Resistance Click here for help with technicals
Gold continues to narrow at $1266-67 having retreated from a 1-month high of $1270.5.
Watch levels: Bullish $127.5; Bearish $1264.5
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.
Click here for help with Support & Resistance Click here for help with technicals
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