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The UK UK 100 looks set to buck the trend for equities, closing the week on a downer after breaching summer support at 7300 to revisit 4.5-month lows at 7200. The driver is the supposedly dovish BoE member Vlieghe talking up the chance of an imminent UK rate rise . This has added to yesterday’s GBP rally following a hawkish BoE policy update, sending Sterling to post-referendum highs vs USD and near 2-month highs vs EUR. Already under the cosh yesterday, this morning’s GBP extension is weighing even more heavily on the UK Index ‘s many internationally exposed names.
The UK UK 100 is back at 7200, the stronger GBP reducing the value of international profits and/or dividends (Oil majors, Consumer Staples, Tobacco, BATS, Pharma, Miners). This is offsetting very limited help from NXT (enjoying yesterday’s results), easyJet (long-haul pact), MRW (steady after yesterday’s drop).
The German DAX is only just offside, helped by a weaker EUR (vs GBP), with the only notable movers being utility RWE, down sharply after a broker downgrade and Deutsche Boerse up on hope of an end to CEO insider dealing probe.
The UK Index 100 has found support at 7200 4.5 month lows. The DAX 30 sits 12500-12560, potentially consolidating via another bullish flag before another up-leg. Dow Jones Futures trade fresh all-time highs 22200. Gold trades a narrow range around $1325, with neither risk appetite or aversion to excite.
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The UK Index 100 has found support at 7200 4.5 month lows. Bounce or further to fall?
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Possible support
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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 sits 12500-12560, potentially consolidating via another bullish flag before another up-leg
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 trade fresh all-time highs 22,200. RSI bullish.
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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Gold trades a narrow range around $1325, pondering both risk appetite (bull market) and aversion (North Korea), whilst evaluating hawkish central bank rhetoric.
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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