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UK News UK Company Announcements Today: Wynnstay Group details H1 revenues gained 9% to £249m and a pre-tax profit of £5.3m Dixons Carphone announces a full year pre-tax profit of £33m from the loss of £140m last year and states it is seeing strong trading in all markets and was increasingly seeing evidence that its markets would be structurally larger post pandemic Stagecoach reports a full year adjusted operating profit of £48.1m on revenues of £928m from £1.4bn and continues to see good long term prospects Topps Tiles states that it remains confident on its trading outlook for the rest of the year HSS Hire states that it now sees 2021 EBITA coming in materially ahead of the current expectations UK Market News The UK government is expected to launch green savings bonds this week, that would allow holders to invest in renewable energy projects HSBC is increasingly being pulled into the Huawei extradition case, where US authorities are to attempting to extradite the firms CFO on allegations that the firm misled the bank over the nature of its relationship with its Iranian subsidiary, Huawei has produced emails which its states shows that senior management at HSBC were aware of the details UK 100 Chart: Daily UK 100 Chart: Technical Summary The UK 100 has continued it its efforts to form a recovery from the minor selling that materialised after the Fed caused a minor scare in the markets by walking forward the expectations on tapering, and price action continues to post just above the 21 EMA allowing the recent weak hands to stay comfortable. So the strategy of "buying on weakness" that has proven profitable for the past 12 months has continued to be profitable, can this remain the case? The RSI has just ticked higher and the key 7000 support does appear to have provided some needed support. This helps maintain a more positive outlook on the main UK index. Moves under the key support at 7000 are needed to turn more negative, and price action continues to appear to be supported by the US markets which has posted a series of fresh all time highs in recent days. View the markets

US News United Airlines made its largest ever order yesterday, with over 270 aircraft from Boeing and Airbus totalling over $30bn at list prices as it looks to accelerate its business to meet a resurgence in air travel US consumer confidence is at 16 month highs up to 127.3 in June as the pandemic recovery is offsetting concerns over inflation Elon Musk has stated that SpaceX is prepared to spend $30bn establishing its Starlink global broadband service SP 500 Chart: Daily SP 500 Chart: Technical Summary As we detailed in recent days every minor bout of profit taking that has materialised from the COVID induced lows last year has proven too tempting to the bargain hunters, as each move has been followed by a rapid push, and this simple pattern has repeated as the US markets have moved back to all time highs. This buying has been so strong that the SP 500 has now moved up to fresh all time highs, and even worked its way up towards being overbought. So the underlying trends remain positive. Moves under support lines, currently around 4165, would be needed to turn more negative on the outlook, and there is now some room now for some minor profit taking to emerge to allow the RSI to unwind from current near overbought levels. View the markets

European News EssilorLuxottica has stated that it does now plan to go ahead with the planned takeover of Dutch eyewear store chain Grandvision despite its recent high profile legal spat with the target Google has reportedly put its deal with French publishers on hold as it waits the French antitrust decision Euro zone economic sentiment has moved up to a 21 month high up to 117.9 from 114.5 and ahead of forecasts, with sentiment in Germany up to an all time high Germany 30 Chart: Daily Germany 30 Chart: Technical Summary The German blue chip has matched the broad tone of the UK and US markets as the slight nervousness that appeared around the Fed announcement quickly found support. For the moment it also continues to more closely match the UK rather than the US markets as it remains well under its recent highs, but like the UK market the underling trend suggests the near term highs are the next target. Moves under the cluster of support, currently around, 14800 would be needed to turn more outright negative. View the markets

FX News Sterling looks set for its worst month since September last year, as the momentum shifted following the change in stance by the Fed, and as concerns over the Delta variant threaten the July 19 re-opening date The dollar has managed to maintain most of the recent gains and ahead of the US jobs data which will remain crucial to the Fed's increasingly hawkish outlook Australia's securities regulators states that it is to consult with market participants on proposals to identify appropriate cryptocurrency assets and exchange traded products to ensure they are developed and regulated properly GBP/USD Chart: Daily GBP/USD Chart: Technical Summary The cluster of trend line support lines we had been monitoring for some days now had supported the recent weakness, but price action today has finally broken lower. This is creating some major near term support at the recent lows at 1.3786. Moves under here, which coincide with the 50 period trading range, would start to suggest a more significant retracement ahead. The bulls will be hoping that the current RSI oversold levels, and longer term positive trends can capture and reverse this near term negativity. 1.3786 does now take on significant importance, can it hold? View the markets

Asian Pacific News Didi has raised $4.4bn from its IPO, and valuing the taxi app at $73bn at the upper end of the amended range, with the debut expected today, but against early valuations that had touted $100bn as a potential valuation Australian based Telstra closed at its highest for a year after it announces it was selling a 49% stake in its mobile tower business for $2.1bn and return half of the proceeds to investors Reuters reports on how the likes of Amazon and Walmart are already concerned over Christmas supplies, as they have started holiday period orders early as the global shipping backlog is already threatening deliveries Japan 225 Chart: Daily Japan 225 Chart: Technical Summary The Japanese remains the most negative of the indices covered due to the broad negative range posted from the highs posted back in February as a result still does look the most vulnerable to a move back to its May lows around 27,400, which also coincides with the lower end of the 50 day range and which was briefly tested in recent days. The bulls will hope that the cluster of trend support lines, lower red lines, will contain this near term selling. Price action has been able to recover up through 21 EMA. Buying in the US market does look robust so the Japanese market may find enough support to push through the near term resistance, around 29,500, but unless the 29520 area is decisively broken we would still describe any buying as being as a result of being hauled up by the US markets than due to any "genuine" underlying strength. View the markets

Commodity News Archer Daniels Midland is in the news after the Washington Post reports that it sold a grain storage plant to Sonny Perdue for $250,000 which it had paid $5.5m for a few years earlier, the sale was made just a few weeks after Donald Trump picked Perdue to lead the US Dept of Agriculture Reuters news highlights how despite the current record temperatures across regions of the US the worlds first water futures contract launched by the CME last year has issues with lack of liquidity, which is stopping those who farmers who may be tempted to use the contract to hedge from actually doing so Nasdaq's data provider unit Quandly announces a deal with Marex to show estimated long and short speculative positions in metals, agriculture and other commodities markets Gold Chart: Daily Gold Chart: Technical Summary Gold is an interesting chart as it has continued its recent negative run, and despite already being oversold it has broken to the downside of the pennant pattern we highlighted in recent days. This opens up quite significant downside targets down towards the March-April lows around 1680. Some minor buying could materialise purely through the oversold nature of recent price action, but we would not feel the buyers gaining the upper hand unless the 1800 resistance can be breached, which is the upper resistance from the pennant. So due to the longer term negative trend, the pennant break to the downside, the outlook would appear skewed to the downside. Technical Summary Methodology *All charts taken at around 16:30 GMT the previous day, Chart Type: Daily Heikin Ashi Moving Average: 21 Period Exponential Moving Average (EMA) Relative Strength Index (RSI) 14 Period OHLC/4 Green Channel: 5​0 Period Linear Regression  +/- 2 Standard Deviations Parallel Pivot Trend Lines: The 2-3 major highs & lows of the period covered are established. Blue Lines: Pivot Resistance Red Lines: Pivot Support Linear Regression calculated from the earliest of these major highs/lows This Linear Regression is projected onto subsequent major highs/lows View the markets

Key Economic Data Due Today Time Country Economic Event Med. Prev. 13:15 US June ADP Employment 600k 978k

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