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The UK Index is positive, but just barely, as the US-EU trade frictions and increasing likelihood of a no-deal ‘Hard Brexit’ continued adding an element of negativity and preventing the UK Index from genuinely challenging July highs. Worse than expected UK retail sales (blamed on World Cup fiesta keeping consumers out of shops) sent the Sterling lower, thus flattering the index’s international exposure, though not enough to significantly accelerate UK Index ‘s upwards trajectory.
Contributors: UK Index +15pts, supported by RDSB (rebound), BATS/IMB (weak GBP), ULVR (results, weak GBP), BP (momentum), AZN/PRU/DGE (momentum, weak GBP), HSBA (heavyweight) and TSCO (bounce). Pushing the index lower are WPP (read-across from Publicis results), Miners (strong USD, metals lower), VOD/BARC (negative momentum) and SSE (disappointing results).
Technicals: The UK 100 is testing 4-day horizontal resistance at 7686, holding above 3-day rising support.
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The UK 100 is testing 4-day horizontal resistance at 7686, holding above 3-day rising support.
Watch levels: Bullish 7703, Bearish 7660
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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Prepared by Michael van Dulken, Head of Research