DAX surges while FTSE tests

DAX surges while FTSE tests

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

Traders have started the new week hungry for risk, pushing equities and base metals higher on reduced concerns about North Korea and Hurricane Irma (although both very much still in play) and supportive China inflation data. As usual, bullishness has proved detrimental to safe havens like Gold, Bonds and the Yen & Swiss Franc. The German DAX outperforms thank to a EUR/USD pullback from Friday’s highs benefiting the index in general while Insurers/financials welcome a, thus far, less destructive Floridian path for Hurricane Irma. The UK FTSE 100 is higher, albeit to a lesser degree, and despite a strong GBP ahead of Thursday’s BoE policy update. Help comes from AZN & GSK (more positive drug trial results), PRU (less hurricane destruction in Florida), RDSb ($300m Nigerian gas deal), GLEN & RIO (China inflation data, Copper bounce) and VOD (investing €2bn in German broadband). The only real drag comes from ABF (trading update, FX flattered). The FTSE 100 is back testing the pivotal Aug/Sept 7440 level. The DAX 30 has delivered a twin bullish breakout at 12350. Dow Jones Futures are half-way to a test of August falling highs at 22000. Gold is already off its $1334 lows.”

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