This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
The FTSE is down on the revival of trade fears, albeit off session’s lows. After several days of calm, investors are back worrying about Trump’s latest threat, which would target £200b of Chinese goods with 10% import duty. This latest effort to ‘correct’ the Sino-US trade imbalance would take him half-way to his avowed $500b ‘nuclear option’, targeting all Chinese exports to the US. His aggressive opener at NATO could also tee us up for a volatile rest of the week in Europe. Even defensive aren’t being spared, perhaps because they have been the ones rallying lately.
Contributors: FTSE -90pts, weighed down most notably by BP & RDSB (Brent Crude oil -2%, profit taking), Miners (Copper -2%, trade war fears, stronger USD), HSBC (heavyweight, trade war fears), BATS/PRU/VOD (profit taking) and MCRO (pre-tax loss). Positive contributors, albeit wildly insufficient, include RB (defensive, weaker GBP), NXT (broker upgrade, bounce momentum) and BDEV (trading statement, expects FY results to beat consensus).
Technicals: The FTSE100 has rebounded from 7580 to confirm shallow 6-day rising support.
Click below to expand sections for more detailed analysis
The FTSE100 has rebounded from 7580 to confirm shallow 6-day rising support.
Watch levels: Bullish 7615, Bearish 7575
Solid Green line
Solid Red line
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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