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Global equities are handsomely positive, risk appetite revived by a Fed update that was less hawkish than it could have been, further policy tightening likely gradual. Relief from the Dutch election result is also supporting sentiment. The UK’s UK Index outperforms thanks to a weaker USD benefiting the key commodity space more than a stronger reciprocal GBP is hindering its international contingent, even after a slightly more hawkish than expected BoE. A EUR holding up around its highs versus the USD means the German DAX marginally underperforms its UK index peer.
The UK 100 gains driven by Oil Majors and Miners (oil + metals prices rebound), a jump by Vodafone (M&A speculation) and Banks (Fed rate hike) offsetting weakness from big ex-divs (BATS, DLG) and Hikma and Merlin (broker downgrades). Germany’s DAX is again being driven by Lufthansa (brighter profits outlook) and Adidas (expects US sales +50% by 2020) with the lone loser being Heidelberg Cement (Q4 profits -30% ; not bidding for US border wall contract).
The UK Index 100 has pulled back from this morning’s 7445 record highs, but is holding its 7400 breakout. The DAX 30 is also back from its highs, but holding its 12050 breakout. Dow Jones Futures also back from highs, but holding breakout at 20980. Gold is gunning for $1230, supported by USD weakness following the Fed update.
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The UK Index 100 has pulled back from this morning’s 7445 record highs, but is holding its 7400 breakout.
Watch levels: Bullish 7435, Bearish 7420
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 also back from its highs, but holding its 12050 breakout.
Watch levels: Bullish 12120, Bearish 12080
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 also back from highs, buy holding breakout at 20980.
Watch levels: Bullish 21,005, Bearish 20,970
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 is gunning for $1230, supported by USD weakness following the Fed update.
Watch levels: Bullish $1230, Bearish $1225
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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