Fear the dip or buy the blip?

Fear the dip or buy the blip?

Mike van Dulken, Head of Research at Accendo Markets commented to clients this morning:

Equities remain mixed but off their worst levels following yesterday’s bond market driven sell-off.  The UK’s FTSE is this morning’s odd one out, underperforming on persistent GBP strength (>1.30 vs USD) weighing on internationally exposed names. This includes Energy and Miners, which are failing to derive benefit from a buoyant oil and copper, while Healthcare remains under the cosh based on US policy scepticism. Germany’s DAX is higher thanks to EUR/USD coming off its highs and most names recouping at least some of yesterday’s lost ground. The FTSE 100 is lower due to Oil (strong GBP, broker downgrades), Healthcare (US scepticism), Miners (strong GBP) and UK Banks (Brexit, bond market sell-off). Keeping it off its lows are a mix of Defensives (ULVR, ABF, BT), Consumer (IAG, DGE) and Rio (copper). Germany’s DAX is being lead higher by the likes of Adidas, Tech, Utilities and Lufthansa. The FTSE 100 is holding above 7-month rising support at 7315. The DAX 30 is back above 12400 to keep its Dec uptrend alive. Dow Jones Futures is off its lows, within a tight 12305-12340 range. Gold has bounced from close to the floor of its narrowing pattern.”

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