This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities are flattish into the weekend as investors trade cautiously before the US jobs report. A decent beat could fuel expectations of additional Fed rate hikes and an imminent trimming of its balance sheet. This as markets digest a more hawkish ECB and BoE, coming to terms with a looming dial-back in globally accommodative central bank policy. Sentiment is further hampered by leaking oil prices (now >6% off recent highs) as rising US production overpowers OPEC-led cuts to rekindle global supply glut fears. UK Index buoyed by weak GBP (poor data); DAX hindered by EUR strength.
The UK 100 is higher thanks to Consumer staples (weak GBP), Utilities (Centrica takeover speculation), Tobacco (weak GBP) and Healthcare (bounce off support). Holding it back are WPP (broker downgrade), Oil majors & select Miners (oil price drop) and Financials (bond sell-off, higher yields). Germany’s DAX sees more losses for ProSieben (JPMorgan negative on EU ad market), Health and Financials exceeding big gains for Utilities (Goldman Sachs bullish on M&A).
The UK Index 100 has bounced close to a bullish test of falling resistance at 7360. The DAX 30 is holding around December rising support at 12350. Dow Jones Futures have sold back to find support around 21310. Gold remains stuck around $1220 support as a stronger USD, hawkishness and higher yields dampen demand.
Click below to expand sections for more detailed analysis
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
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
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
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