This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equity markets are still treading water this morning, though that’s at odds with what’s going on behind the scenes. Mining stocks continue to outperform on improved sentiment concerning China and emerging markets while such confidence is being slightly offset by a cautious outlook for the media sector (see WPP results). Note oil selling off a little – Brent from resistance, WTI through support – while Gold is breaking out strongly to new highs on a weaker USD (more than outright safe haven demand). As far as this afternoon’s US data is concerned, we expect markets to concentrate on wage growth rather than non-farm payrolls. It is, after all, inflation that’s the key metric for the Fed right now.
UK Index is flat, still potentially consolidating recent gains. DAX ist flach, in the same manner as the UK Index . Wall Street still stroking the ceiling of its rising wedge. Gold is pushing on towards $1300.
Click below to expand sections
UK 100 trading flat around 6160, still in an uptrend from mid-Feb with potential to go as high as 6400 (last there in Dec).
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
DAX consolidating recent gains, trading 9750-9800. It’s uncertain yet whether we’ve had a breakout from 3-month falling highs.
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 knocking up against 16950, still in an uptrend but at the ceiling of a rising wedge. 17000 is quite possible.
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 has traded as high as $1275 after breaking out from a bullish converging triangle, which implies upside potential to late Jan highs of $1305. Help is via a weaker USD rather than safe haven seeking.
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