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Blame it on the Brexit – UK100 breaks 6000

Market Analysis
2016-06-14_16-50-48

UK100, Daily        

The Brexit Blues: The falling pound and rising UK government bonds ripples through to the UK stock market. The UK100 fell below the key psychological level and big round number of 6,000 earlier today. This is the first time since the winter sell off in stocks during January and February that the main UK stock index has fallen below 6000. It has now lost over 350 points (5.7%) in little over a week. The uncertainty over Brexit has been felt even more significantly on the European stock markets with the main French index (FRA40) down 7.60% and the German GER30 down 8.36% over the same period.

Next support levels for the UK100, are 5880, further out 5700 and Monthly support (from 2012) down at 5360.  

 

These are highly volatile times all driven by the uncertainty surrounding the potential of Brexit and a great example of how sentiment and  fundamental news can drive global markets. It also shows how interconnected all the financial markets are. Join me at next week’s webinar https://goo.gl/HppSQY as we explain all these relationships.

 

 

 

 

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Stuart Cowell

Market Analyst 

HotForex

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