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Equities are mixed this morning after a good run of gains for UK and US markets this week (the latter managing record highs almost every day…). A period of quiet that arguably started yesterday precedes a major US Fed update next week with many suspecting a more hawkish tone as US macro data continues to impress alongside corporate earnings and equity market gains. UK PMI data has just disappointed with Manufacturing, Services and Composite readings all in contraction territory (though note Manufacturing did beat consensus). The UK 100 has reacted positively, clawing back early losses and now trading around break-even on hopes the Bank of England may now have to stimulate the economy in August via an interest rate cut, more QE or another extension of the Funding for Lending Scheme (FLS). Or all three. Can the index hold on until end of play though?
The UK 100 ‘s PMI rally hit resistance just south of 6720 although profit taking this afternoon could muffle the positive effects of stimulus hopes. The DAX30 is under pressure from a stronger Euro following a set of European PMI beats. Dow Jones futures are positive but still looking toppy, potentially exposed to USD strength on technical grounds and with the Fed due to meet next week. Gold is firm around $1324, supported by economic uncertainty and geopolitical tensions while simultaneously digesting a stronger USD.
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The UK 100 is still hovering around the 6700 mark with Friday volumes light. Potential for profit taking this afternoon.
Watch levels: Bullish 6750, Bearish 6650
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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The DAX30 is in the upper regions of its week-long range, progress hindered by a stronger Euro.
Watch levels: Bullish 10250, Bearish 10045
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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Wall Street/Dow Jones futures have met resistance at 18554, the mid-point of their 2-day range.
Watch levels: Bullish 18560, Bearish 18540
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 is trading near rising support, though a steep downtrend this morning could engineer a breakdown. Bulls looking to a risk-off afternoon to provide added support though.
Watch levels: Bullish $1326, Bearish $1321
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
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