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Equities are nicely positive as investors digest another political upset, albeit one that looks likely to keep the UK’s Conservatives in power, via a DUP coalition. Helping the UK Index is a weaker GBP (election + USD strength), potential for the DUP to push for a softer Brexit as well and quick coalition formation allowing Brexit negotiations to start without delay.
The UK’s UK 100 is higher thanks to GBP weakness flattering those with international exposure (HSBC, RB, GSK, DGE, ULVR, BATS, VOD), oil off its lows (BP, RDSb) and copper prices trying higher following Chinese inflation data (GLEN, RIO). Offering resistance are UK banks (LLOY, RBS, BARC), consumer (ABF, SKY, NXT, IAG, MKS) and housebuilders (PSN, TW, BDEV, LAND). Germany’s DAX is lapping up fresh EUR weakness derived from USD strength. Helping are HeidelbergCement, chemicals (BASF, LINDE) and Fresenius while Utilities (E.ON, RWE) foot the index.
The UK Index 100 has rebounded strongly to regain 7500. The DAX 30 has broken above 12760. Dow Jones Futures are sideways around 21215. holding yesterday’s uptrend. Gold is off its lows at $1274, but still in its mid-week downtrend.
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The UK Index 100 has rebounded strongly to regain 7500
Watch levels: Bullish 7520, Bearish 7480
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 broken above 12760
Watch levels: Bullish 12800, Bearish 12750
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 sideways around 21215 holding yesterday’s uptrend
Watch levels: Bullish 21,225; Bearish 21,210
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 is off its lows at $1274, but still in a mid-week downtrend.
Watch levels: Bullish $1277; Bearish $1271
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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