FTSE 100 is currently trading at 7296-nearly flat compared to the last closing. The index has been gaining momentum since yesterday. The UK benchmark was trading near its highest level since early September, finding relief as the pound dropped after surging above $1.3200 intraday. The pound had soared after the UK’s August inflation reading was surprisingly higher. But sterling was later hit as The Times newspaper reported UK Prime Minister Theresa May will reject the EU’s offer to solve the issue related to Ireland’s border post-Brexit.

Among the top gainers in the FTSE 100 were mining stocks including Glencore, Antofagasta, Anglo American, and Rio Tinto. Antofagasta rose by 5%, Anglo American added 5.01%, Rio Tinto rose 3% and Glencore advanced by 3.64% at the time of writing. The stocks gained due to a sharp rise in nickel and zinc prices.

According to CPI data released on Wednesday, the U.K. inflation hit a six-month high of 2.7% in August.  Inflation was boosted by larger-than-usual seasonal increases in transport fares and higher theater admission prices, data by the Office for National Statistics indicated. The news boosted banks on the view that the Bank of England may be pressurized into more interest rate hikes after an August hike. RBS was trading- higher by 2.7% and Standard Chartered jumped 2.2%.

In addition, the August reading for PPI Input (MoM) came in at 0.5% earlier on Wednesday. This was above the expectations of 0.4%.  The House Price Index (YoY) also released today was at 3.1%- above expectations of 2.9%.

On the technical front, the RSI is currently at 36.85% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed the %D from below to the upside at 18.05% and suggests that the market may head upwards. So, overall the market setup seems to be positive.


Trade Suggestion-Limit Buy at 7292. Take Profit at 7312. Stop Loss at 7282.


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