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Global equity markets are positive once again as risk appetite takes hold of investors, brushing off yesterday’s stronger than expected US consumer inflation figures ahead of this afternoon’s producer inflation. This suggests that last week’s equity correction was more than just a sharp volatility induced move, being a conscious repricing of both a more hawkish Federal Reserve as well as rising bond yields. The USD is off its lows, helping European markets higher, while South African exposed stocks benefit from the Rand trading 2.5-year highs following President Zuma’s resignation.
The UK 100 is being helped higher by gains for Miners (weak USD = strong base metals), Banks (higher interest rates = higher margins) and the SA-exposed OML. Offering minimal resistance are ex-div stocks (AZN, ULVR & RDS), BATS (weak USD), SLA (Scottish Widow fund withdrawal) and RELX (group restructuring).
The UK Index 100 is trading at the ceiling of its 7205-7270 channel. The DAX 30 is retreating from the ceiling of its 12200-12500 narrowing channel. Dow Jones Futures are retreating from 25150 highs having extended their breakout from 25000. Gold is retreating from $1357 resistance as the USD recovers.
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The UK Index 100 is trading at the ceiling of its 7205-7270 channel.
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 retreating from the ceiling of its 12200-12500 narrowing channel.
Watch levels: Bullish 12,480; Bearish 12,390
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 are retreating from 25150 highs having extended their breakout from 25000.
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 retreating from $1357 resistance as the USD recovers.
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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