INSIGHTS

Steve Miley

Tue, Jul 2


Global stock surge after US-Sino trade truce send FTSE 100 higher

A strong advance across global equity markets on Monday in reaction to positive geopolitical events over the weekend.

The restart of US-China trade talks alongside the meeting between Trump and Kim Jong Un lifted the major global stock averages to multi-month highs and in respect of the US markets to record levels.

The FTSE 100 pushed through a key peak at 7403 to re-energize an intermediate-term bull theme.

Furthermore, despite significant geopolitical developments over the past weekend impacting markets Monday, this week still has much to offer as can be seen here in the FX Explained MacroWatch.

 

FTSE 100 intermediate-term bullish shift and aiming higher

A Monday bull gap (7400-5-7375.5) through the key cycle peak at 7403 built on Friday’s firm rebound after the erratic consolidation at the end of June, to keep risks higher for Tuesday.

The bull gap to start July through 7403 set an intermediate-term bull trend.

For Today:

*  We see an upside bias for 7467.5/68; break here aims for 7500, maybe 7525/26

*  But below 7435.5 aims for 7400-5-7375.5 and maybe opens risk down to 7331.

Intermediate-term Outlook - Upside Risks: We see an upside risk for 7500.

*  Higher targets would be 7558.5 and 7625.5.

*  What Changes This? Below 7245.5 shifts the intermediate-term outlook back to neutral; through 6998 is needed for an intermediate-term bear theme.


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