Threadneedle hawks go into hiding

Threadneedle hawks go into hiding

Henry Croft, Research Analyst at Accendo Markets, commented to clients this morning:

Equity markets are positive once again, albeit not as sharply as yesterday as some risk-on excitement dissipates. Gains in Europe are underpinned by attractive translational FX impact: the FTSE benefiting from weak Sterling after July inflation came in weaker than expectations, while German quarterly GDP growth disappointed (despite an annual acceleration), denting the Euro to the benefit of the DAX.

The UK’s FTSE outperforms thanks to Sterling weakness helping DGE, BATS, GSK and ULVR, CRH (Home Depot read across), while Shire gains after applying to market its US dry-eye in Europe. Offering minimal weakness are RIO (removal from RBC’s conviction list), BLT (Oil weakness), NXT (Berenberg downgrade) RB. and Gold Miners. Germany’s DAX also benefits from Defensive strength (EON, Deutsche Post, RWE) while Fresnius extends its rally from 9 month lows.

The FTSE 100 sees the emergence of a rising channel towards. The DAX 30 has fallen back to 12200 after encountering falling highs resistance. Dow Jones Futures’ rally has faltered at last Wednesday’s 22060 highs. Gold has found support at $1273.”

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