UK 100 : Nearing All-Time Highs

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

4 October 2016

UK 100 : Nearing All-Time Highs

* UK 100 Flirting With All-Time Highs*

UK 100 testing 7100 for first time in 18 months
Breaks above 6950 and 7000 have happened quickly
Smaller already trading fresh all-time highs
Weak GBP after PM's Brexit announcement giving UK 100 a boost
75% of UK Index profits benefit from weaker GBP
With GBP now at $1.28, how high can the UK 100 go if the currency falls to $1.20?

Observations For:

USD could appreciate more with Nov/Dec US Fed Interest Rate hike
UK macro data continues to surprise to the upside since the EU Referendum
Strong breakout at 6950 has gained momentum

Observations Against:

USD strength could pose threat to commodities space (Oil & Miners)
Long-term effects of Brexit yet to materialise
US Presidential Election/Fed rate rise could increase stock market volatility

UK 100 : 5-year; Weekly

UK 100 Cash (-)

Monetary Example:

After the EU referendum, the UK 100 hit a brief Brexit low of 5780, settling around 6000 thereafter. This compares to today's highs of 7100, a difference of 1100 points.

If you had gone long at 6000 points purchasing a single contract at £10 per point, you would now be enjoying an £11,000 profit!

Note, however, if the index had continued to fall you would have made losses at the equivalent amount.

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

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4 October 2016