This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity markets are positive this morning, however falling Crude Oil prices are hampering optimism after a strong lead from Asian and US markets. While indices remain positive ahead of what is widely expected to be a strong Non-Farm Payrolls print this afternoon to all but confirm a June rate hike from the US Fed, they are off highs (ex-Germany’s DAX) as Brent and US benchmarks fall below $50 and $48 respectively. The UK 100 , having touched a fresh all-time high shortly after opening, underperforms peers on account of its heavily-weighted Oil producers, while a technical sell-off for Copper hurts Miners.
Keeping the UK Index afloat are Banks (strong NFP print to confirm Fed June rate hike) while Defensives BATS, DGE, PRU & ULVR (UK election uncertainty) and Pharmas SHP & AZN (cable falling from yesterday’s highs). Holding the index back are Oilers (falling Crude prices), Miners (base metals under pressure), ABF (Sterling election jitters) and WTB (Goldman Sachs downgrade). Germany’s DAX outperforms, with Automakers Volkswagen and Daimler leading all 30 components higher.
The UK Index 100 has fallen from 7600 highs to test rising lows support at 7560. The DAX 30 is testing resistance at 12845 and out-of-hours all-time highs of 12875. Dow Jones Futures are in the midst of a bullish flag which, if completed, could take the index above 21500. Gold is rallying from support at $1260 having fallen from Wednesday’s 5-week highs.
Click below to expand sections for more detailed analysis
The UK Index 100 has fallen from 7600 highs to test rising lows support at 7560. Bounce or break?
Watch levels: Bullish 7575, Bearish 7555
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
The DAX 30 is testing resistance at 12845 and out-of-hours all-time highs of 12875.
Watch levels: Bullish 12855, Bearish 12830
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 in the midst of a bullish flag which, if completed, could take the index above 21,500.
Watch levels: Bullish 21,215; Bearish 21,170
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 rallying from support at $1260 having fallen from Wednesday’s 5-week highs.
Watch levels: Bullish $1264.5; Bearish $1259
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
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research