FTSE 100 FALLS BELOW MA5 ON POLITICAL UNCERTAINITY
FTSE 100 futures are currently trading at 7228.8-higher by 0.25% as compared to the previous closing. The contract, however, closed in the negative territory in the last trading session.
In the cash markets, the FTSE 100 lost 0.43% to 7,260.46 at the time of writing. The blue-chip share index declined today, with traders fearing that an impeachment enquiry into the U.S. President would pile on more political uncertainty to an already weakened global economy.
The U.S. President unleashed comments on China’s trade practices on the previous day, denting optimism around both sides proposed trade talks and hurting internationally-focused financials, miners and oil majors.
The British Supreme court on Tuesday said that PM Johnson’s controversial suspension of Parliament was null and void.
Frustration over few signs of progress in Sino-U.S. trade talks and a modest recovery in the Pound amid lawmakers’ legally-binding moves to prevent a no-deal Brexit has left the FTSE 100 with small gains for September.
Index-component Sainsbury’s rose 2.02% after the company laid out a new plan to reduce costs, speed up debt reduction, and overhaul its store estate and financial services division as the supermarket chain reported better trading in the recent quarter.
United Utilities gained 0.05% after United forecast a strong first-half as it benefited from regulatory incentives.
On the other hand, Homebuilders underperformed today with Taylor Wimpey falling 0.69% and Barratt Developments dropping 1.00%.
The midcap index FTSE 250 was down 1.02% at the time of writing.
On the data front, U.K. Finance Mortgage Approvals for August released earlier today came in at 42.576K. Mortgage Approvals were below the market expectation of 43.2K.
In addition, CBI Distributive Trades Survey for September also out today came in at -16. The index reading was better than the consensus estimates of -25.
On the technical front, the RSI is currently at 44.95% and suggests that the market can continue trading sideways. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Sell at 7237. Take Profit at 7202. Stop Loss at 7255