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Global equities are mixed at the start of the new trading week as investors digest a plethora of drivers. The UK’s UK 100 outperforms by way of weak Sterling after reports that up to 40 MPs would back a vote of no confidence in PM Theresa May after the resignation of two cabinet members and Brexit negotiations stall in Brussels. Although this falls eight members short of the number needed to trigger a leadership election, the move underlines the PM’s shaky position at the head of the government. Meanwhile, US tax reform plans could face a major hurdle as two separate plans emerge from Senate and House Republicans, although party leaders appear unconcerned ahead of a Thursday vote on the latter’s bill, whilst German Chancellor Angela Merkel has until Thursday to complete coalition talks allowing her to form a new government.
The UK Index is being helped higher by the multitude of internationally exposed components, including RDSb (asset disposal), AZN, BATS, ULVR, BP, DGE, GSK & VOD (Indian tower sale), all thanks to Sterling weakness unless stated otherwise. This is more than offsetting weakness for HSBC (Mifid II research implementation), CCH (JP Morgan Downgrade), BAE & RR (Ultra Electronics read across).
Germany’s DAX underperforms as Fresenius (broker downgrade), Lufthansa, Deutsche Boerse, Commerzbank and Thyssenkrupp all weigh, offsetting positive contributions from Deutsche Post, Adidas (extending Friday’s bounce) and Vonovia.
The UK Index 100 is retreating from 7475 falling highs resistance although remains positive on the day. The DAX 30 is testing 13,100 resistance-turned-support. Dow Jones Futures are also retreating from falling highs resistance having recovered from Thursday’s 23,300 lows. Gold is extending its rally from Friday’s $1273.5 lows.
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The UK Index 100 is retreating from 7475 falling highs resistance although remains positive on the day.
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 has fallen through 13,100 resistance-turned-support.
Watch levels: Bullish 13,105, Bearish 13,070
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
Dow Jones Futures are also retreating from falling highs resistance having recovered from Thursday’s 23,300 lows.
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 is extending its rally from Friday’s $1273.5 lows.
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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