FTSE 100 DIPS AS GDP & PRODUCTION DATA DISAPPOINT
FTSE 100 futures are currently trading at 7112- lower by 1.16% as compared to the previous closing. The benchmark has been continuously closing in the red since the last 4 trading sessions.
The index fell today as reports of progress in Brexit negotiations led a rise in the Pound which can hit the overseas revenues of British companies.
Top losers in the FTSE 100 include Glencore (down 3.6%), Pearson (down 3.5%), Rolls-Royce (down 4.5%) and Burberry (down 7.6%) at the time of writing.
Burberry fell today as Morgan Stanley cut the European luxury goods sector to an “underweight” rating from “neutral,” with the broker saying demand from Chinese consumers for high-ticket items appears to have peaked.
On the economic front, UK GDP change (MoM) for August released earlier today came in at 0%. The markets expected GDP to rise by 0.1% with 0.3% rate of growth registered in the previous month. In addition, UK Manufacturing Production change (MoM) for August also released today came in at -0.2%. The markets expected Production to rise by 0.1% with a 0.2% decline registered in the previous month. UK Construction Output (YoY) for August also released today came in at 0.3%. The markets had expected output to rise by 1.4%. The final reading for Construction output in July was revised to 2.8%. The Preliminary reading for Construction Output had been reported at 3.5%
On the technical front, the RSI is currently at 28.92% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the lower band of the Bollinger Bands and is heading downwards.
Overall Bias is Negative and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Sell At 7125, Take Profit At 7085 Stop Loss At 7145