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The UK 100 is on the back foot due to a combination of GBP strength and lower oil prices weighing on heavyweights and Energy, while Banks succumb to a mix of profit-taking after the recent rebound and the UK government’s latest RBS bailout stake sale. Politics still simmering in the background, from Rome to Madrid and Westminster to Washington, with populist stances continuing to challenge financial markets.
Contributors: UK Index -40 pts held back mostly by RBS (UK govt stake sale), BATS (GBP strength), RDSB/BP (lower oil prices, GBP strength, profit-taking), HSBC (heavyweight), CCL (Morgan Stanley cut profit forecasts), WPP (broker downgrade), BARC/GSK (profit-taking) and IAG (range trading). Positive contributions from RB (heavyweight), Miners (weaker USD helping industrial metals), BRBY (record highs) and Next (bullish flag pattern).
Technicals: The UK 100 has broken below 5-day rising support at 7720, back testing Friday’s 7690 lows.
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The UK 100 has broken below 5-day rising support at 7720, back testing Friday’s 7690 lows.
Watch levels: Bullish 7725, Bearish 7685
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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