This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities are taking the Fed’s latest policy tightening move in their stride. Probably because it was one of the most telegraphed moves ever, balanced up with the door being left ajar for another December hike but with a nod to data remaining choppy and inflation/wages still unconvincing. No drama, just like the Fed (and markets) prefer.
The UK UK 100 is flat as USD strength weighs on commodities, offsetting the benefit of GBP weakness. Positive contributors include RDSb & BP (oil resilience, weaker GBP), Banks (tighter Fed policy), CRH (M&A), PRU (hurricanes less destructive) and AAL (stake purchase). Holding it back are Household and Personal goods (ULVR, RB) , RIO (strong USD, metals lower), CPG (CEO departure) and Telecoms (capital intensive dislikes tighter monetary policy).
The German DAX is outperforming thanks to a weaker EUR, strong gains for Banks (M&A) and a mix of Insurers & Autos, offsetting weakness among Utilities (RWE, EON), Deutsche Telekom and Household/Personal Goods (Beiersdorf, Henkel).
The UK Index 100 is sideways at 7275, penned between rising support and falling resistance. The DAX 30 is holding above 12600 in a bullish pattern towards 12900. Dow Jones Futures above 22400, remain in their uptrend, another fresh high yesterday. Gold has broken below $1300, extending its September down-channel .
Click below to expand sections for more detailed analysis
The UK Index 100 is sideways at 7275, penned between rising support and falling resistance. Rising channel or turning over?
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 holding above 12600 in a bullish head & shoulders reversal pattern back towards 12900.
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 above 22400, remain in their uptrend, another fresh high yesterday
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 $1300, extending its September down-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
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