FTSE 100 INCHES UP AHEAD OF US-CHINA TRADE DEAL; GDP DISAPPOINTS
FTSE 100 futures are currently trading at 7,541.8-higher by 0.50% as compared to the previous closing.
In the Cash Markets, the FTSE 100 added 0.22% to 7,604.25 at the time of writing.
The benchmark index traded flat on Monday as investors waiting for the trade and geopolitical developments.
The long-awaited phase one US-China trade accord is expected to sign on Wednesday, as confirmed by US Treasury Secretary Steven Mnuchin. He also said China is also committed to signing the phase one trade deal accord.
The rise in the benchmark index was also supported by technology stocks, which rose around o.4% at the time of writing. British security software company Avast PLC was the top gainer. It added 2.4%.
Automobile stocks suffered most. The decline in auto stock was triggered by news that China has lowered its annual auto sale forecast on a YoY basis.
On the data front, UK Manufacturing production data (MoM) for the November month released earlier today came in at -1.7%. The data is below the market expectation of -0.3%.
The UK GDP (MoM) data was released earlier today for the November month came in at -0.3%. The GDP was below the market consensus of 0.0%.
Top gainers in the FTSE 100 include- BAE System (up 3.06%), Severn Trent ( up 2.47%), United Utilities (up 2.06%) at the time of writing.
On the other hand, top losers in FTSE 100 include- Standard Chartered (down 0.86%), Prudentaial (down 0.87%), and Phoenix Group (down 0.92%) at the time of writing.
On the technical front, the RSI is currently at 62% and suggests that the market can trade sideways. The market is trading above 5,20 and 50-days moving average. The current price is above the middle line of the Bollinger band and heading upwards.
Overall Bias is Positive, and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
TRADE SUGGESTION- BUY@ 7541, STOPLOSS@ 7521, TARGET@ 7581