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Global equities are mixed on the second day of an event-packed week, with investors once again siding with caution ahead of key political and economic events. Whilst the UK government has announced the triggering of Article 50 may not take place until the end of the month, meetings of the US, UK and Japanese central banks alongside a heated election in the Netherlands still provide more than enough event risk for markets.
The UK’s UK 100 is the rank outperformer, showing marginal gains despite volatility arising from the BoE deputy governor Hogg’s resignation as GBP falls to 2-month lows against USD. Strength from Prudential (results; raises divi) alongside weak Sterling favouring BP & Shell (Crude Oil price recovery ahead of OPEC production report), Healthcare (Trump Obamacare alternative) and a mix of defensives (BATS, ULVR, IMB) are helping offset weakness in Financials (Article 50 uncertainty, possible dovish BoE on Thursday). The German DAX is treading water as EUR strength weighs on exporters, hampering a strong showing from RWE post results (+8%).
The UK Index 100 has recovered from an early test of 7370 support to flirt anew with all-time highs. The DAX 30 has fallen from 12000 overnight highs. Could a bounce from 11965 spell a return? Dow Jones Futures are approaching the ceiling of a shallow falling channel after a bounce from 20840. Gold is holding above $1200 however remains in falling channel as a strong USD weighs.
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The UK Index 100 has recovered from an early test of 7370 support to flirt anew with all-time highs.
Watch levels: Bullish 7405, Bearish 7365
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 from 12000 overnight highs. Could a bounce from 11965 see a return?
Watch levels: Bullish 11995, Bearish 11960
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 approaching the ceiling of shallow falling channel after a bounce from 20840.
Watch levels: Bullish 20,880, Bearish 20,830
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 holding above $1200 however remains in falling channel as dollar strength weighs.
Watch levels: Bullish $1204, Bearish $1202
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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