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Equities are flat, but holding close to their highs as investors continue to look through geopolitical risk, increasingly at ease with the prospect of tighter monetary policy. Confidence is high of yet another supportive earnings season on both sides of the Atlantic, as are hopes of US congressional and UK/EU deadlocks being broken, allowing Trump to deliver on tax reform and the door to be opened for further Brexit negotiations.
UK UK 100 is flat, buoyed by RDSb (oil price bounce), BARC/HSBC/RBS (expectations of UK rate hike), BATS (weaker GBP) PSON (share buyback) and AZN (drug news) offsetting weakness from MERL (profits warning), GLEN/RIO (Copper off highs; RIO lowers guidance), SLA (profit taking) and SHP.
The German DAX, also flat, sees gains for Infineon (BoA sees growth acceleration) and E.On counter losses for the likes of Merck, Bayer (EU deadline freeze for Monsanta deal remains) and ThyssenKrupp (will not spin off Tata JV next 2-3yrs).
The UK Index 100 has bounced from 7505 to regain its 7520-7560 channel. The DAX 30 may now be in a new falling channel, still around 13000. Dow Jones Futures remain close to 22965 fresh record highs, still in a rising channel. Gold has broken below $1290 to trigger a potential bearish H&S top reversal back to $1275.
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The UK Index 100 has bounced from 7505 to regain its 7520-7560 channel. Stronger USD vs GBP, despite strong UK inflation, helping internationally exposed names while banks like the prospect of rate hikes.
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 may now be in a new falling channel, still around 13000
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 remain close to 22965 fresh record highs, still in a rising 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.
Click here for help with Support & Resistance Click here for help with technicals
Gold has broken below $1290 to trigger a potential bearish H&S top reversal back to $1275. Stronger USD hindering the safe haven.
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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