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Equities have made a negative start to the week (yes it is possible) as investors weigh up the US government shutdown (another vote 5pm UK). At the same time we get opening gambits from the World Economic Forum in Davos, await more on German coalition talks and prepare for results from HP, Halliburton and Netflix. The USD is on the back foot again, helping commodities, with the threat of central bank bullishness round the world overshadowing a hiking Fed. This and suggestions of a special Brexit deal helps GBP, hampering the UK Index , while a strong EUR hurts the DAX.
The UK Index is held offside by defensives (RELX, ULVR, DGE), financials (HSBC, PRU) and CCL, many of which helped the index on Friday. Providing buoyancy are RDSB/BP (weaker USD, oil prices holding up), BARC (Tiger Global takes £1bn stake), SHP (bullish reversal, sector M&A), VOD/BT (read-across from Deutsche Tel) and AAL (weaker USD, metals up).
Germany’s DAX underperforms with gains for Deutsche Telekom (higher dividend pledge), Deutsche Bank/BMW (coalition talks) and Pro-Sieben offset by Lufthansa (tech resistance), Infineon (bearish reversal), ThyssenKrupp (topped out), Continental/Vonovia (broker downgrades).
The UK Index 100 is testing for a breakout at 7740. The DAX 30 has broken above 13420. Dow Jones Futures have found support at 26000. Gold sits between rising lows and falling highs $1329-1335.
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The UK Index 100 is testing for a breakout at 7740
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 has broken above 13420
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 have found support at 26000.
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 sits between rising lows and falling highs $1329-1335
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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