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Equities are positive this morning with Chinese macroeconomic data yet again the focal point for markets as yesterday’s weak export data has given way to positive inflation figures. European financials are very much in the driving seat, pricing in the impact of Q3 earnings releases from US heavyweights Citi, JP Morgan and Wells Fargo in the coming hours. The USD is reversing early morning gains from GBP after weak UK construction output data as the buck surges against the Euro. Oil continues to make gains this morning amid a surprising lack of OPEC/Russian production deal-related rhetoric that has pounded the market over the last week.
The UK 100 is back above 7000 after bouncing at 6925 support yesterday afternoon, index heavyweights BP and Shell leading the way thanks to the rising oil price. The DAX 30 is also having quite the morning session, +1.8% thanks to improved market sentiment from China as it looks to finish the week in the green above the 10520 mark. Dow Jones Futures complete the positive morning, on course to reach Wednesday highs as the USD surges due to market expectation of positive Retail Sales data improving the chances of a December Fed rate hike further. Gold remains in a week-long $1250-$1260 narrowing channel, continuing to be pressured by USD strength as the metal lacks direction due to an absence of monetary policy updates.
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The UK 100 is back above 7000 after bouncing at 6925 support yesterday afternoon, with the rising Crude Oil prices helping index heavyweights BP and Shell to drive the index. Relatively weak construction output data has paved the way for the pound to weaken, helping the index rally further.
Watch levels: Bullish 7070, Bearish 6990
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 DAX 30 is having quite the morning session thanks to improved market sentiment from China, looking to finish the week in the green above the 10520 mark. Will US financials’ earnings finally take the global focus away from Germany’s scrutinised banking sector?
Watch levels: Bullish 10620, Bearish 10450
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 complete the positive morning as the USD surges due to market expectation of positive Retail Sales data improving the chances of a December Fed rate hike further, on course to reach Wednesday highs. Note, however, pre-market open reporting by heavyweight Financials could significantly impact the index.
Watch levels: Bullish 18180, Bearish 17125
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 remains in $1250-$1260 narrowing channel and is continuing to be pressured by USD strength as the metal lacks direction due to an absence of monetary policy updates.
Watch levels: Bullish $1262, Bearish $1249
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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