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Equities are positive at the half-way stage. The UK Index has rebounded from a weak start as oil reacts to quasi-confirmation (awaiting Russia) of an OPEC production cut extension through 2018. A stronger USD on fresh tax reform hopes has helped US futures gain, in turn boosting the UK Index ‘s internationally exposed members by taking GBP from its 2-month highs. This and a stronger GBP vs EUR on hopes of a Brexit deal ensures the German DAX outperforms via EUR weakness.
The UK UK Index is higher thanks to defensives (weaker GBP; BATS, IMB, DGE, NG), HSBC (broker upgrade), AV (raised targets), BT (continued bullish reversal) and BAE (impact of accounting change). Representing a drag are LLOY (profit taking) and healthcare giants AZN & GSK. Germany’s DAX is up sharply thanks to EUR weakness producing gains across the board, most notably for Deutsche Telekom, Continental (Citi says US tax winner), Beiersdorf and Commerzbank.
The UK Index 100 has bounced back above 7400. The DAX 30 has found fresh resistance at 13180. Dow Jones Futures are testing the floor of a 100pt rising channel. Gold has pulled back to rising support around $1280 .
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The UK Index 100 has bounced back above 7390, delaying any risk of a bearish flag to 7200,
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 found fresh resistance at 13180.
Watch levels: Bullish 13,160, Bearish 13,120
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 the floor of a 100pt rising 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
Gold has pulled back to rising support around $1280 .
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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