Results doing more to hinder then help – Accendo Markets

Results doing more to hinder then help – Accendo Markets

Mike van Dulken, head of Research at Accendo Markets commented to clients this afternoon:

“Equities remain under pressure from geopolitical tensions (albeit calmer) but are also being impacted by ex-dividends and macro data. The UK FTSE has broken lower following a disappointing trio of mixed UK Ind/Manuf Production, another Construction Output decline and a wider trade deficit. Germany’s DAX underperforms, also breaking lower, in spite of a weaker EUR, due to uninspiring corporate results. The UK FTSE100 derives most of its declines from an army of ex-dividends (incl. RDS, BP, DGE, LLOY, BT, RIO, GSK, AZN) while heavyweight HSBC pitches in along with defensives ULVR, RB and BATS while GLEN & PRU are dragged lower after results. The only major helper today is Coca Cola HBC after profits rose on strong volume growth. Germany’s DAX underperforms despite a weaker EUR, as results from Henkel drag Consumer peers lower and the update insurer Munich Re weighs on a financials sector which is already suffering from an absence of appetite for risk. The FTSE 100 has broken below 7450, extending its retrace towards the 7365 floor its 6-week rising channel. The DAX 30 has broken below hitherto August support at 12100. Dow Jones Futures continue to hold around 22000. Goldremains on course for a test of $1300 and completion of a bullish flag.”

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