FTSE 100 INCHES DOWN ON LOSSES IN STOCKS TRADING EX-DIVIDEND
FTSE 100 futures are currently trading at 7266.8-lower by 0.44% as compared to the previous closing. The contract, however, closed in the positive territory in the last trading session.
In the cash markets, the FTSE 100 lost 0.66% to 7,263.05 at the time of writing. The blue-chip share index dropped today due to shares trading ex-dividend, which offset gains in industrial stocks after European peers posted bright forecasts and upbeat news on the Sino-U.S. trade front.
The FTSE 100 also underperformed the broader European index.
The midcap index FTSE 250 was down 0.017% at the time of writing.
Shares trading ex-dividend such as BHP (down 0.69%) and Glencore (down 2.26%) dropped and weighed on the index today.
Stocks of some blue-chip exporters such as spirits company Diageo and drugmaker AstraZeneca dropped as the Pound remained steady after lawmakers voted to prevent the British PM from taking Britain out of the European Union without a deal at the end of October.
On the other hand, Melrose rose 6.8% after its first-half profit beat market expectations.
Industrial giants such as Rolls-Royce and BAE Systems rose after French engine maker Safran raised its annual profit forecast and Rafale warplanes maker Dassault Aviation affirmed its view of higher net sales in this year.
Homebuilders also advanced today with Taylor Wimpey gaining 3.5% and Barratt Developments rising 0.87%.
Micro Focus (up 1.67%) is set to be relegated from the FTSE 100 later in September.
Stocks of mining giants were mostly trading in positive territory at the time of writing. Antofagasta and Anglo American added 2.95% and 0.23% respectively at the time of writing.
On the technical front, the RSI is currently at 53.65% and suggests that the market can move in the downward direction. The current price is above the MA5 (7263.68). The current price is above the middle line of the Bollinger Bands but 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 7275. Take Profit at 7243. Stop Loss at 7291