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The UK 100 has given up much of yesterday’s late surge, and more, GBP bouncing off overnight lows to dent the index’s international contingent and some chunky ex-dividend adjustments weighing. High oil prices continue to support Energy names and GBP strength (this morning’s UK macro data wasn’t as bad as it could have been) is in spite of what could prove a rather dovish BoE in light of recent poor UK macro updates. Note that without ex-dividends, the index would, in fact, still be positive.
Contributors: UK Index -15pts; dragged lower by ex-dividends (RDSA&B, BP, GSK, CNA, ADM, SGE) depriving the index of almost 23pts today, BT (FY results, restructuring, pension deficit), BATS (Stronger GBP) and RRS (poor Q1 results). Positive impetus today comes from RBS (DoJ settlement), NXT (Q1 results, ups guidance), ABF (NXT readacross for Primark), GLEN (weaker USD helping commodities), WPP (BP contract) and CCH (Q1 volume rise offsets FX drag).
Technicals: UK 100 back from a test of the 7710 ceiling of a 3-week rising channel. Intersecting support at 7625?
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UK 100 back from a test of the 7710 ceiling of a 3-week rising channel. Intersecting support at 7625?
Watch levels: Bullish 7650, Bearish 7620
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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