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Global equity markets are mostly lower as global political uncertainty heavily influences market sentiment amid a lack of corporate updates. Investors have returned after a long weekend to fresh economic concerns for the Eurozone – centred on problem countries Greece and Italy (bailout repayment refusal and early election rumours, respectively), continuing whispers of Russian collusion within the Trump administration, and the ever-tightening UK election race, with voters digesting performances from Theresa May and Jeremy Corbyn in last night’s televised ‘debate’. Note, the US dollar has filled its opening gap-up, providing a detrimental translational drag for both the UK’s UK Index and the German DAX, while Crude Oil prices continue to ebb lower.
The UK 100 is underperforming, with laggards including Tobacco (rivals gaining ground in Japan), Telecoms (BT pension fund concerns), Pharma (investor risk aversion), IAG (British Airways IT failure) and Retail-focused defensives DGE & ULVR. Minimal assistance is being offered by GLEN, Asia-focused lender HSBC, Defensives ABF & WPP, and RDS (EUR recovery from lows). Germany’s DAX is flat as Deutsche Boerse strength (LSE M&A) offsets Deutsche Bank weakness (early Italian election hurting European banking sector).
The UK Index 100 is struggling for direction, having recovered from an early test of 7500 rising low support, however failing to regain a 7530 handle. The DAX 30 has fallen from falling highs resistance at 12650. Dow Jones Futures are testing support just shy of 21035. Gold has fallen back from one month highs of $1270.
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The UK Index 100 is struggling for direction, having recovered from an early test of 7500 rising low support, however failing to regain a 7530 handle.
Watch levels: Bullish 7525, Bearish 7495
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 edged back from falling highs resistance at 12650, however is holding above 12600.
Watch levels: Bullish 12640, Bearish 12595
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 testing support just shy of 21040 having failed to build on early test of 21080 resistance.
Watch levels: Bullish 21,050; Bearish 21,035
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 back from one month highs of $1270. Note RSI not yet hit overbought.
Watch levels: Bullish $1269; Bearish $1262
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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