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The UK 100 index has bounced off the floor of its 3-month up-channel. This comes thanks to fresh GBP weakness, driven by uncertainty about Brexit. If the PM fails to push her deal through Parliament, to delay Brexit until May, and another round of indicative votes on Monday fail to deliver a Commons consensus, the default remains a No-Deal departure on 12 April. Which leaves GBP at the mercy of each and every Brexit soundbite.
The biggest contributors this week include Oil and Miners liking the sound of US-China trade talk progress. Some big name defensives also fared well: AB Foods, British American Tobacco, BAE Systems. The most notable hindrance derived from AstraZeneca (rights issue). GlaxoSmithKline and Diageo were also dented by fresh concerns over global growth.
Bulls need a break above 7285 to extend the rally towards 7360 March highs. Bears require a breach of 72450 for another test of rising support around 7200.
Our watch levels: Bullish 7285, Bearish 7240
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Prepared by Michael van Dulken, Head of ResearchComments are closed.