Bulls back shopping despite China worries

The FTSE has extended its recovery, as investors re-discover their inner bull, retracing all of the week's trade war inspired declines. With oil back on the ascent thanks to a surprise API inventory drawdown late last night

Bulls back shopping despite China worries

The FTSE has extended its recovery, as investors re-discover their inner bull, retracing all of the week’s trade war inspired declines. With oil back on the ascent thanks to a surprise API inventory drawdown late last night, FTSE energy names are being offered a short-term reprieve before what would appear to be an almost-inevitable OPEC oil production hike (rolling back on the production cuts). All the while, Asia-oriented stocks (Miners, HSBC) are heaving a sigh of relief that US-China reciprocal tit-for-tat tariff threats are a way off, becoming tangible policy.

Contributors: FTSE100 +90pts, boosted by HSBA/Miners (China exposure), BATS/IMB/ULVR/RB (defensives, weaker GBP), Energy (higher oil), Banks/VOD (rebound), GSK/AZN (rebound, defensives). Providing very limited resistance are BKG (profits warning), NXT/MKS (retail sector malaise), HL (profit taking), SSE (broker downgrade), BDEV/TW (BKG read-across). Technicals: The FTSE100 is making a bullish test of 7700, trying to regain last Thursday’s 7794 June high.

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Categories: Analysis, News
Tags: FTSE 100

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