This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
European equities are suffering under a weaker USD after the Republican healthcare bill once again failed to achieve US congressional approval, denting hopes of Trump stimulus and adding to poor US data that has cut the odds of a September rate hike. The UK’s UK Index outperforms (breakeven) thanks to a weak USD being supportive of commodities (oil, metals) and lower inflation prints bringing GBP/USD back from its overnight 10-month highs. Germany’s DAX, however, underperforms rather noticeably as exporters struggle with a EUR/USD pushing fresh 2yr highs as we write.
The UK 100 is held around breakeven by weakness for Tobacco (GBP holding close to highs), Miners (Copper off highs) BP (flat oil, GBP strength) and IAG (Lufthansa results). This is offsetting strength from heavyweight defensives including AZN (continued rebound), HSBC (resistance turned support, Asia data), consumer staples and RDSb (bigger dividend than BP). The DAX is lower due to EUR weakness weighing generally, the most notable losses being for Lufthansa (results) industrials, health, consumer and autos.
The UK Index 100 is range-bound 7360-7430 but still in a long-term uptrend. The DAX 30 has broken below 12500, potentially on its way back to 12400. Dow Jones Futures have bounced off rising support at 12620. Gold is flirting with a bullish breakout to $1240.
Click below to expand sections for more detailed analysis
The UK Index 100 is range-bound 7360-7430 but still in a long-term uptrend.
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 has broken below 12500, potentially on its way back to 12400
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 have bounced off rising support at 21620.
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 flirting with a bullish breakout to $1240.
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