This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity indices are higher into mid-week, although bullishness has waned. Investors are reacting positively to subtle tweaking of the Bank of Japan’s (BoJ) struggling monetary stimulus programme, aiming to keep 10yr government bond yields around zero to help banks already suffering under the negative interest rates designed to keep money in the system and foster growth and inflation. Instead of taking interest rates further negative, markets are digesting the tweak as proof that central bank innovation has life in it yet. Phew! Could the tweak even be something the equally struggling ECB adopts in future?
Prepare for the usual quiet as we edge towards the US Federal Reserve’s own much-watched policy update this evening. Very unlikely to get a hike, the message via its statement and press conference could nonetheless contain welcome clues about whether December is a possibility for its next interest rate move or whether we are looking at next year. Cheap money for longer?
UK 100 ‘s 4-day uptrend has found resistance at 6880. Back to 6840 rising lows? The DAX 30 breakout has taken it as far as 10520 where it has stalled. Dow Jones Futures back from highs of an 18100-18230 narrowing range. Gold is back facing north after a bounce off $1310, the rate sensitive safehaven benefiting from continued monetary policy uncertainty.
Click below to expand sections
The UK 100 ‘s 4-day uptrend has found resistance at 6880, back below a trendline of falling highs since 6-Sept. Back to 6840 rising lows before another bounce?
Watch levels: Bullish 6870, Bearish 6850
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
The DAX 30 breakout has taken it as far as 10520 where it has stalled. Pause before another up-leg. Or intersecting April resistance too strong?
Watch levels: Bullish 10530, Bearish 10460
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
Dow Jones Futures back from highs of an 18100-18230 narrowing range. Will it ultimately break higher or lower?
Watch levels: Bullish 18240, Bearish 18180
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 back facing north after a bounce off $1310, the rate sensitive safehaven benefiting from continued monetary policy uncertainty. However, has that breached 2016 trendline already turned resistance?
Watch levels: Bullish $1325, Bearish $1317
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