UK100, Daily
European stock markets sold off earlier, with DAX and FTSE100 down -1.3% and -0.8% respectively despite better than expected Eurozone and UK PMI readings. However, they recovered from the early losses and now trade up +0.9% and +1.2% respectively. The US markets opened with gains of around 0.2% following the US Claims data which saw another 2.438 million added to the unemployment register, but last weeks data was revised lower by 300,000 and the 4 week average is now down to 3.042 million from 3.543 million.
Risk appetite started to wane in quiet trade during the course of the Asian session and indices pared early gains amid concerns of a fresh round of trade tensions. The US Senate yesterday passed a bill that could bar some Chinese companies from listing on US exchanges and there was fresh criticism from US President Trump of China’s leadership, while China in turn seems to be escalating its spat with Australia. Against that background Topix and Nikkei closed with losses of -0.2%, the Hang Seng lost -0.5% and the CSI 300 also -0.5%, while the ASX was down -0.4% at the close.
Technically, the UK100 continues to struggle on the higher time frames too, but there may be some signs of life. This week we have seen a breach and hold of both the 50-day moving average (5820) and the psychological 6000 level. The Parabolic SAR flipped from negative to positive, the 38.2 Fibonacci level was also broken, RSI tested 60 and the Bollinger Bands are starting to point north. The MACD however is neutral. The April high at 6170, the 6200 round number and the 50.0 Fibonacci level at 6,250 are the next resistance areas.
Click here to access the HotForex Economic Calendar
Stuart Cowell
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
