Dollar dump drives dip

Dollar dump drives dip

Henry Croft at Accendo Markets commented to clients this morning:

“Equities are negative at mid-morning, despite the FTSE 100 having traded a fresh all-time intraday high at the open, while Germany’s DAX clearly underperforms after a breakdown from support. Supportive Sterling weakness has sharply given way as aggressive USD selling drives market sentiment the FTSE’s significant foreign-earning portion lower, offsetting strength for the heavyweight Oil sector on Crude hitting three year highs and Banks enjoying a spate of broker upgrades and rising global bond yields. On the continent, the majority of stocks on the German DAX trade lower as the Euro recovers from three days of losses.

The UK FTSE has saw fresh highs this morning thanks to positive performances for Banks (particularly HSBC, RBS and STAN after research notes) and Oilers Shell & BP (Crude 3yr highs), although these early gains are being pared as losses for Defensives and Miners overpower.

Germany’s DAX sees only Banks (higher bond yields/slated merger), Deutsche Boerse and Lufthansa in the green as the Euro climbs sharply, while heading up the list of fallers is Prosiebensat, Continental (also post-results/broker downgrade), Vonovia, Fresenius, Bayer and Deutsche Telekom.

The FTSE 100 has turned back from fresh highs but is holding its December uptrend. The DAX 30 has broken back below 13300. Dow Jones Futures have broken January rising highs 25400. Gold continues to consolidate $1305-$1325.”

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