This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities have extended their positive start to the week, sentiment supported by a positive OECD growth outlook, Shell raising guidance and restoring an all-cash dividend and UK Banks passing the latest stress tests. A stronger USD also plays a part (via GBP and EUR weakness) on a combination of pre-released text from next Fed Chair Powell, ahead of his appearance in front of the Senate Banking committee, and hopes of Tax reform. All the while we await Thursday’s OPEC make or break update on production cut extension.
The UK UK Index is higher thanks to RDSB/BP (Shell raised guidance), HSBC (fared best in UK stress test), ULVR/RB/DGE (defensives, weaker GBP) and Shire, held back only by GLEN/BLT/RIO/AAL (USD up, metals down) and LLOY/BARC (came off worst in UK stress tests). Germany’s DAX outperforms on general strength attributable to EUR weakness, with standout gains for ProSiebenSat.1 (media M&A) Deutsche Boerse (Brexit beneficiary?), Beiersdorf and Henkel with only minimal drag from BMW (broker downgrade) and Deutsche Bank.
The UK Index 100 has rebounded close to yesterday’s 7440 highs. The DAX 30 is holding 13000-13050. Dow Jones Futures are flirting with yet another record high. Gold continues to make upside tests of $1295.
Click below to expand sections for more detailed analysis
The UK Index 100 has rebounded close to yesterday’s 7440 highs
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 13000-13050
Watch levels: Bullish 13,060, Bearish 13,025
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 flirting with yet another record high
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 continues to make upside tests of $1295.
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