Rebound highs still elude us

Rebound highs still elude us

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

“Global equities are lower again, struggling under the weight of falling highs resistance from rebound highs. Whilst a stronger USD and higher bond yields impede stateside sentiment, European stocks are ignoring the reciprocal benefit of a weaker GBP and EUR. The FTSE is focused on the stronger Greeenback’s negative impact on commodities, and plentiful corporate results, while Germany’s DAX reacts to PMIs which missed consensus. Next up: US PMIs, US Home Sales, BoE’s Carney and Fed minutes.

The FTSE 100 is held back by BLT (downgrades post results), SHP (extending weak trend), ULVR (WalMart, Kraft Heinz read-across), RIO (strong USD, weaker metals, BHP read-across), BATS (bond proxies being shunned; results tomorrow) and BP (strong USD, lower oil price). Offering support are GLEN (results, divs), LLOY (results, divs, buybacks), HSBC (rebound post results) and RELX (preferred to WPP). The FTSE 100 is consolidating in a bearish pennant at 7230. The DAX 30 is in a narrowing pattern at 12400. Dow Jones Futures trade below 25000, further retreating from rebound highs. Gold’s down-channel has broken below $1330.”

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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