FTSE 100 Support 6680 6656 6652 6644 6628
FTSE 100 Resistance 6724 6742 6747 6796

Good morning. Well the futures seem too have shaken off the failed coup attempt in Turkey with the FTSE sitting just below 6700 as I write this. If the bulls carry on as they were then we could be on for a test of the 10 day Bianca at 6796 today!

US & Asia Overnight from Bloomberg

Financial markets showed signs of resilience following a failed coup attempt in Turkey, with the Turkish lira leading a recovery in emerging-market currencies and Asian shares edging higher. Haven assets including the yen and gold fell.

The lira recovered almost half of its loss from Friday, when news that army officers had tried to seize power triggered the currency’s steepest slide since 2008. South Africa’s rand advanced with the Mexican peso, while the yen extended its biggest weekly decline since 2009. The MSCI Asia Pacific excluding Japan Index of shares was set for its best close since October, futures on the S&P 500 Index gained and gold sank to this month’s low. Markets are shut in Japan and Thailand for holidays.

The failed putsch in Turkey came less than a week after global equities had recovered from the selloff that followed the U.K.’s June 23 vote to leave the European Union, an event that wiped almost $4 trillion off the value of the securities over two trading days. Turkish officials over the weekend sought to limit the impact on financial markets by promising unlimited liquidity to lenders and measures to support the lira.“Geopolitical risk has reared its head again,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which manages more than $110 billion. “But it’s at least the fourth coup in Turkey since 1960 and I suspect no lasting impact on global markets.”

Hermes Asset Management is among investors seeing potential for a relief rally in Turkish assets even amid longer-term concern about the country’s political and economic situation. Rabobank and CrossBorder are predicting outflows from Turkey. Turkey’s deputy prime minister posted on Twitter that there’s “no need to worry.”

Currencies

The lira jumped 1.9 percent versus the dollar as of 12:46 p.m. Hong Kong time, after sliding 4.6 percent on Friday. The South African rand climbed 1.4 percent, having dropped 2.4 percent in the last session as news of Turkey’s coup attempt hit emerging-market assets. Mexico’s peso rose 0.5 percent.

The yen fell 0.6 percent to 105.47 per dollar. It tumbled 4.1 percent last week as Prime Minister Shinzo Abe outlined plans for a “bold” stimulus package in the wake of an election victory.

New Zealand’s dollar weakened 0.3 percent after a report showed consumer-price gains were slower than economists and the central bank forecast. The monetary authority is expected to respond to persistently weak inflation by cutting its benchmark interest rate to 2 percent at the next review on Aug. 11, according to most of the respondents in a Bloomberg survey.

The Bloomberg Dollar Spot Index gained 0.1 percent. It climbed 0.4 percent in the last session as U.S. reports showed retail sales rose more than economists predicted last month and manufacturing expanded by the most since January. The odds of the Federal Reserve increasing interest rates by December more than doubled last week to 44 percent in the futures market.

Malaysia’s ringgit weakened 0.8 percent, after strengthening 2.2 percent last week. China’s yuan fell as much as 0.17 percent to its weakest level since 2010, having lost ground in all but one of the last 11 weeks.

“We’re seeing Asian currencies weaker because of the dollar,” said Irene Cheung, a foreign-exchange strategist at Australia & New Zealand Banking Group Ltd. in Singapore. “I’m not sure whether the Turkey situation has really stabilized and, if there’s any concern, it should be good for the dollar.”

Stocks

The MSCI Asia Pacific excluding Japan Index rose 0.1 percent, after a 4.5 percent surge last week that marked its biggest weekly jump in four months. Benchmarks gained in Australia, India and Taiwan, while the Shanghai Composite Index retreated 0.1 percent following a run of three weekly gains.

A gauge of property shares on the Shanghai Stock Exchange slid 0.5 percent after data indicated new home-price gains moderated last month in China. Malaysia Airports Holdings Bhd., owner of Istanbul’s second-biggest airport, tumbled more than 5 percent on concern fewer people will visit Turkey following the attempted coup.

Futures on the S&P 500 index rose 0.2 percent before companies including Bank of America Corp., Charles Schwab Corp. and International Business Machines Corp. report earnings. Contracts on the U.K.’s FTSE 100 Index gained 0.4 percent as SoftBank Group Corp. was said to be nearing a deal to buy ARM Holdings Plc for about $32.4 billion in cash.

An exchange-traded fund tied to Turkey’s shares fell 2.5 percent on Friday in New York. Turkish President Recep Tayyip Erdogan ordered reprisals after the failed takeover by the military led to the deaths of more than 190 civilians and so far more than 6,000 people, including military personnel, judges and prosecutors, have been detained.

Commodities

Crude oil was little changed at $45.92 a barrel in New York. It gained 0.6 percent in the last session as news broke of the coup attempt in Turkey, a vital conduit for oil passing from Russia and Iraq to the Mediterranean Sea.
Gold declined 0.8 percent to about $1,327 an ounce, trimming this year’s advance to 25 percent. The metal is in a major bull market and may surge to more than $1,500 as low interest rates buoy demand and the U.S. presidential election looms, according to DBS Group Holdings Ltd.

Copper fell 0.4 percent in London, extending Friday’s retreat from the highest level since April. Tin dropped 1.1 percent, after ending last week at a four-month high. Nickel rallied 0.6 percent amid a clampdown on polluting mines in the Philippines, the world’s largest producer of nickel ore.

Corn climbed as much as 1.4 percent in Chicago, where it’s posted declines in each of the last four weeks. Heat in the U.S. Midwest intensified over the weekend and this may damage crops, said Michael Pitts, commodity sales director at National Australia Bank Ltd. in Sydney.

Bonds

New Zealand’s bonds due in a decade advanced after the inflation data, pushing their yield down by one basis point to 2.35 percent. There’s a 72 percent chance of an interest-rate cut at the central bank’s August meeting, based on derivatives prices tracked by Bloomberg.

The yield on similar-maturity Australian debt increased by three basis points to 2.01 percent. [Bloomberg]

FTSE 100 Outlook and Prediction

The futures markets have shrugged off the Turkey situation so I think we will probably get the usual bull Monday. However, there is fairly decent looking resistance at 6725 and 6745 today – levels that are probably worth shorting off. The former is Fridays high and also the major PRT resistance level, while the latter is the top of a rising 30min channel and also R3 for today.

Despite the 2 resistance levels here, the 2 hour chart, which is still bearish at the moment, could turn bullish today with support then forming at 6700. This is the risky long on the trade plan. It hinges on the bulls driving the price past 6700 and holding it above that. So, fairly simple plan really with a couple of shorts and a long.