This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Equities are back from yesterday’s stimulus hope-inspired highs as the dial for Fed rate hike uncertainty is turned up another notch. This comes after a host of Emerging Market central bankers argued for the US to get on with it and pull the trigger, contrasting sharply with IMF and World Bank warnings to hold off to avoid ‘panic and turmoil’.
More disappointing inflation data from Asia (China, Japan), coupled with another New Zealand rate hike, has added fuel to the fire of an already extremely intense debate, highlighting divergent growth prospects and deflationary pressures the world over following a commodities rout linked to China’s slowdown. Along with heightened financial market volatility, many argue this warrants the Fed waiting until at least year end.
UK Index pullback halted at 6140 thanks to breakout trend-line turning supportive. Dax & Dow retreats found support at rising lows dating back to 25/26 Aug. Uptrends from Aug lows still valid for the trio, however, the turn back by breakouts and limited bounces overnight sees us watching support levels carefully. Gold broken below $1116 from highlighted bearish descending triangle pattern.
Click below to expand sections
UK 100 breakout failed at 6300 turning back to revisit breached trendline which has since turned supportive. Uptrend from Aug lows still alive. RSI trading within confines.
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
Germany’s DAX dropped back from breakout above 11400. Now in rising channel. Uptrend from Aug lows still alive. Note RSI turned down from overbought again.
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 futures like also in a rising channel having turned back from late Aug highs of 16700. Uptrend from Aug lows still in play, but failure to better 16400 overnight is a concern.
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 broken down from the bearish descending triangle pattern we had been highlighting with yesterday’s equity rally countering appetite for the safehaven metal. Still in downtrend from Jan, hindered by uncertainty linked to the Fed, absent inflation and USD strength.
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