FX optimism hinders Euro shares

FX optimism hinders Euro shares

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

“Equities are back at rising support this morning, as persistent USD weakness in spite of solid US macro data and tax reform benefits translate to GBP and EUR strength further fuelled by optimism about a soft Brexit, German coalition talks and hawkish ECB minutes. This is holding back both the UK FTSE and German DAX , more-so the latter – while US equity futures remain close to fresh overnight highs in spite of today’s Martin Luther King markets holiday. The UK FTSE is flat as a boost from BATS/ULVR (defensives), GLEN, (weak USD, higher metals prices, extending rally) and WPP (bullish breakout) are offset by the drag from HSBC/STAN/RIO (profit taking), BP (heavyweight, oil off highs), DGE (strong GBP). Germany’s DAX underperforms with heavier losers that gains, the likes of Lufthansa, BASF and Continental countering advances by ProSieben, Adidas and E.ON. The FTSE 100 holds above 7765 January rising support. The DAX 30 trades a new 13175-13300 channel. Dow Jones Futures continue their northerly step-up, now flirting with 26000. Gold has broken above $1335 resistance.”

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Accendo Markets

Accendo Markets is an online trading services provider, offering CFDs, spread betting and forex to retail (private) clients. Accendo Markets was established in 2007 and has since gone on to win various awards including ‘2018 Winner of Best CFD provider’ at City of London Wealth Management awards and 2017 & 2018 Best CFD Research Service in ADVFN’s International Financial Awards Accendo Markets Ltd. is authorised and regulated by the Financial Conduct Authority (FCA). For more information, visit www.accendomarkets.com