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Pre Market 06:45 - Dollar Weakness into NFP : Copper breakout, Precious Metals Moving ; Oil to test $84 key resistance?

UK Indices put in another day in green yesterday, with the mid cap 250 continuing to outperform following Wednesday’s budget news.

In the US S&P 500 made a new all-time high as Tech led the index higher semi-conductors outperforming ,Nvidia adding another 4.5% to new ATHs - heatmap

The Heat map below for the UK Universe shows fairly broad green with some weakness in mining aerospace defence and medical equipment. As mentioned in the weekly wrap, pharmaceuticals turning more bullish is key to a sustained rally ; in the past week 31 pharm names have rallied to 28 selling

click to enlarge

Gold is holding near its ATH into US NP today – it is stretched an prone to a pullback. This has been helped by further dollar weakness, as high as silver And even more so palladium and platinum all making significant moves further north. This should strengthen some of the precious metal group miners

Dollar index has made a move towards the 102 level in advance of NFP today, this has dropped both the 200 MA and the 50 MA in two subsequent sessions- it’s now at the key support level. Sustained weakness is bullish for a commodities and for the miners.

Copper has made a significant move to break through the upper channel line resistance- this again is a bullish signal for the miners

Brent oil has been consolidating in a tighter range and has held the 21 EMA as support- it looks set for a breakout to clear the $84 level which I highlighted earlier in the week. This should help lift the Oilers if it can clear resistance though this has been in play since Dec '23 so may prove resilient. US rig count later today may provide a catalys.

Bitcoin looks to be forming a bull flag following the recent all-time highs and then retest of support around the $60,000 level - it does look set to retest $70,000

Dollar weakness helping commodities and equities

Copper breakouts of channel resistance

Brent sets -up to move north through the$84 resistance

S&P 500 heatmap led by tech esp semis

Economic Calendar

German GDP

EU Employment, GDP

US NFP jobs

Charts m Catalysts : JUST set for a breakout

JUST chart is set-up for a breakout through the 90p resistance level and strong results may be the catalyst needed - it has been outperforming the sector recently so likely strong expectations into these results - the very bullish outlook on exceeding expectation is likely to drive the breakout - See RNS

·	Underlying operating profit² up 47% to £377m (FY 22: £257m), driven by significantly higher new business and in-force profits.
·	Retirement Income sales² have grown by 24% to £3.9bn (FY 22: £3.3bn). Pricing discipline and risk selection in buoyant markets have led to an increased margin of 9.1% (FY 22: 8.5%). This has combined to drive a 33% increase in new business profits to £355m (FY 22: £266m).
·	Momentum continues into 2024. The DB market had a record year in 2023 (c.£50bn), while the GIfL market was at its highest level in a decade, up 46% to £5.3bn. That momentum has carried into 2024 and we expect the strong structural growth drivers of each market to continue well into the future.