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European bourses are starting the new quarter positively as US dollar strength and subsequent Sterling and Euro weakness help to aid the army of foreign earning and exporting names in the region. Sterling is coming under the cosh as a weak UK manufacturing PMI print adds to the political manoeuvring on the fringes of the Conservative party conference, while the tense aftermath of yesterday’s Catalonian referendum weighs on the Euro.
The UK’s UK 100 outperforms as Sterling suffers from politically-induced jitters, with heavyweight Oilers (BP & RDS), Pharmaceuticals (GSK, AZN & SHP) and Miners (GLEN & RIO) all benefitting from weak GBP, offsetting losses for Banks (BoE £4bn requirement by 2022) and select Defensive names (expected UK rate hike).
The German DAX is also positive as gains for Lufthansa (Monarch administration), Adidas (weak EUR) and Infineon Tech (US Tech sector strength) overpower losses for Banks (Spanish political uncertainty) and Thyssenkrupp.
The UK Index 100 has retreated from fresh 3-week highs above 7420, having extended last week’s breakout from August falling highs resistance. The DAX 30 is off highs of 12900, however remains in a strong uptrend. Dow Jones Futures are climbing, pointing to a record opening this afternoon. Gold has fallen to a fresh 6.5 week low of $1271.
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The UK Index 100 has retreated from fresh 3-week highs above 7420, extending last week’s breakout from August falling highs resistance.
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 off highs of 12900, however remains in a strong uptrend. Note RSI turned overbought for first time since May.
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 climbing, pointing to a record opening this afternoon.
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 has fallen to a fresh 6.5 week low of $1271, half way toward completing a bearish flag pattern to $1240.
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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