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The UK 100 is positive, trading highs of the day after breaking above the 7590 ceiling of yesterday’s sideways pause. GBP remains strong after comments from Carney (normally a hindrance to the index) and trade fears persist ahead of tomorrow’s the actual implementation of US and China tariffs. That said, a still strong oil price buoys heavyweight Energy and gains for European equities are helping US futures signal a positive return from their 4th July holiday.
Contributors: UK Index +35pts, driven north by RDSB/BP (oil price still strong), GLEN ($1bn share buyback), Banks (risk appetite, bargaining-hunting after declines), Miners (weaker USD, copper off lows) and PRU (rebound, momentum). Limited resistance is in play from ABF (trading update, slower Primark, Sugar profits warning), and heavyweights AZN (continued declines) and GSK/BATS/VOD (profit-taking, stronger GBP).
Technicals: The UK 100 has broken above 7590 with traders eyeing up Tuesday’s 7630 highs again.
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The UK 100 has broken above 7590 with traders eyeing up Tuesday’s 7630 highs again.
Watch levels: Bullish 7630, Bearish 7570
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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Prepared by Michael van Dulken, Head of Research