All roads lead to… complicated coalition discussions

All roads lead to… complicated coalition discussions

European equities are higher, in spite of the Italian election handing another win to populist politics, albeit with the ultimate coalition outcome still very uncertain. Add to this more US/Europe tit-for-tat on trade tariffs, and some disappointing PMIs, and the optimism that helped engineer a bounce from last month’s first effort at a correction looks less and less convincing. Germany’s DAX outperforming thanks to weaker EUR. FTSE higher, but held back by stronger GBP. Dow Jones futures called a shade lower.

The FTSE 100 is slightly higher thanks to Miners (bounce after US metal tariff concerns), VOD (falling lows support), RBS (bounce after sell-off; preference versus other European banks, especially Italian), CRH (weaker EUR and stronger USD) and BP (oil prices off lows). Holding it back are BATS/RB (continued dislike of bond-proxies, stronger GBP), HSBC (testing 8-month support) and SHP (profit taking after takeover speculation fuelled bounce).

The FTSE 100 is off its lows, but still in a downtrend and stuck below 7100. The DAX 30 has turned back from falling highs resistance at 12030. Dow Jones Futures have been turned back from falling highs resistance at 24570. Gold has broken above falling highs resistance at $1320.”

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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