Merkel building bridges with Autos?

Merkel building bridges with Autos?

European equities are positive to differing degrees. The UK FTSE needs a catalyst to escape this week’s range, Germany’s DAX is flirting with a bullish breakout on Autos-friendly rhetoric from Merkel and Dow Jones futures are testing their highs of the week before investors return from the Labor day long weekend. Sentiment is positive despite ongoing geopolitical issues, investors further demonstrating their thick skin. Helping out is a combination of M&A from both sides of the Atlantic, stable macro data in the Eurozone and continued gains for metals and oil. The UK FTSE 100 is flat as the positive contribution from BP & RDSb (oil up), SHP, AZN & GSK (continued bargain hunting), BHP & GLEN (metals rally), VOD & DGE (defensive) is countered by a negative impact from RB (exec departure woes of yesterday), HSBC (Asia exposure) and FRES (Gold rally stalled; USD stronger). Germany’s DAX outperforms markedly (+0.7%) thanks to gains for Autos (+1.5%; Merkel said diesel needed as bridge to electric) and Merck (+3%; considering sale of $1bn consumer health unit). The FTSE 100 is 7400-40 rangebound, awaiting a catalyst for a break. The DAX 30 is flirting with a bullish breakout at 12200. Dow Jones Futures sit within what may be a bullish ascending triangle to 22000 or better. Gold has pulled back from highs to test $1330 for support.”

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