This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities mixed this morning, and off their best levels, continuing to digest the Fed’s upgraded assessment of the stateside labour market but on-going patience in raising US interest rates from historic lows. While things remain on the up for jobs, the other half of its mandate – inflation -, along with external events (Greece, China) and a stronger USD look like reasons which could allow it to hold off from a rate hike until year-end, even if the door has been left ajar for an – unlikely in our view – September move.
While inaction and patience is serving as a post-crisis Fed policy tool to both prevent panic at the start of ‘rate normalisation’ and keep any ‘low-rates-forever’ exuberance in check, is today’s muted market reaction a signal that investors have turned a corner, ready for a stronger hint and for the FOMC to break the seal sooner rather than later? A stronger Oil price, decent corporate results and some Chinese market stability are also boosting sentiment today.
UK 100 back around 6650, holding recovery support at 6640. DAX30 failed to break higher and dropped back from falling 10-day resistance at 11300. Dow Jones bounce slowed up around 17750. Gold broken down to 4-day lows $1183 on USD strength.
Click below to expand sections
UK 100 recovery from 6500 continues, testing as high as 6678 this morning and the subsequent pullback already finding 6635 support at the trendline of rising lows from Monday.
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
Germany’s DAX still in uptrend from Monday lows, actually in a narrow channel, but needing to break beyond 11300 to negate falling highs from 11800.
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
US Dow Jones lost momentum around 17770 (50% retrace of recent declines) but still holding bounce from 17400 lows. Pause for breath?
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
Gold’s still in the doghouse having failed again at $1100 and being further tarnished by the Fed statement strengthening the USD. Falling highs from last Tuesday trumped the rising lows of the past few days.
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
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research