FTSE 100 FALLS BELOW MA5 ON WEAK EARNINGS
FTSE 100 futures are currently trading at 7114.8-lower by 0.33% as compared to the previous closing. The contract, however, closed in the positive territory in the last trading session.
In the cash markets, the blue-chip share index inched up 0.17% to 7,184.34 at the time of writing. The broad-market index has been closing in the negative territory since last six sessions.
The broad market index rose earlier in the session supported by broad gains in stocks of heavyweight constituents such as GlaxoSmithKline and AstraZeneca.
The benchmark index dropped today due to weak earnings from global commodities trader Glencore and other companies.
The midcap index FTSE 250 was up 0.29% at the time of writing.
Glencore dropped 3.98% and touched its lowest level in three years after it reported about a one-third drop in core profit.
Index member Spirax-Sarco fell 5.34% and is on track for its worst day in more than 11 years. The valve maker plunged after it warned sales growth at its main business would more than halve in the second half of the year.
Stocks of Standard Life Aberdeen fell 7.2% despite reporting a rise in first-half assets under management and administration.
Oil major BP dropped 0.81% as crude prices fell today.
Stocks of Miners were trading mixed on Wednesday. Antofagasta inched up 0.17% while BHP lost 1.62% at the time of writing.
On the other hand, Homebuilders outperformed today with Taylor Wimpey gaining 1.16% and Barratt Developments rising 0.61%.
The FTSE 100 has fallen more than 5% in just a week following the U.S. President’s threat to impose a 10% tariff on Chinese goods starting from 1st September.
The broad-market index posted the second straight month of gains in July, supported by hopes of more stimulus from central banks globally and weakness in the Pound amid Brexit concerns.
On the technical front, the RSI is currently at 36.68% and suggests that the market can move in the downward direction. 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 7120. Take Profit at 7085. Stop Loss at 7138