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Global bourses are mostly lower this morning as the Trump trade is thrown into doubt, although the UK’s UK Index is outperforming its peers as it deflects European and US political risk. A rebounding US dollar has provided the UK Index ‘s global contingent a handy translational boost, while the German DAX’s heavily weighted exporters (ex-Auto) have kept the index from further losses ahead of tonight’s televised French presidential debate. Yesterday’s disappointing US Auto Sales and Manufacturing data prints have dented hopes for the Trump reflation trade, while a potential Democratic filibuster at the nomination vote for Trump’s Supreme Court pick have heightened political tensions.
The UK 100 is being driven higher by gains for major Oilers BP & Shell (crude oil holding support), US-focused Pharma names AZN & SHP, and a selection of predominantly greenback earning heavyweights (BATS, HSBA, GLEN, RIO, WPP, DGE). This is offsetting losses from Banks RBS and Barclays (RBS legal costs; US deregulation concerns), ABF (weak Sterling) and the South-African exposed Old Mutual (S&P sovereign credit rating downgrade).
The German DAX is being led south by Deutsche Bank (US deregulation concerns; Eurozone political concerns) and BMW (weak US auto sales), being countered by Lufthansa (positive Ryanair traffic numbers).
The UK Index 100 is holding in positive territory although is continuing to test the 7300 mark. The DAX 30 has fallen back after yesterday’s attempted recovery from 12210 rising support. Dow Jones Futures are struggling to overcome 20590 falling highs resistance. Gold has overcome long-term falling highs resistance, although is struggling to better the $1260 mark.
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The UK Index 100 is holding in positive territory although is continuing to test the 7300 mark.
Watch levels: Bullish 7325, Bearish 7290
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 fallen back after yesterday’s attempted recovery from 12210 rising support. RSI now recovered from overbought.
Watch levels: Bullish 12370, Bearish 12345
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 struggling to overcome 20590 falling highs resistance having been unable to maintain yesterday afternoon’s bounce from 20520 lows.
Watch levels: Bullish 20,610, Bearish 20,580
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 overcome long-term falling highs resistance, although is struggling to better the $1260 mark.
Watch levels: Bullish $1262, Bearish $1253
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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