FTSE 100 INCHES UP AS OIL MAJORS, LSE LEAD GAINS
FTSE 100 futures are currently trading at 7114.3-higher by 0.38% as compared to the previous closing. The contract closed in the positive territory in the last trading session also.
In the cash markets, the blue-chip share index added 0.99% to 7,147.56 at the time of writing. The FTSE has been closing in the negative territory since the last four trading sessions. The benchmark index inched up today buoyed by oil major BP. The FTSE 100 was, however, on track for its worst week in over one-and-half years on fears of an economic slowdown and risk of recession.
LSE (up 2.34%) was the top gainer in the index after news that some of its investors had asked Hong Kong Exchanges and Clearing to sweeten the takeover bid.
A survey released on Thursday showed an unexpectedly sharp downturn in the services sector in September indicated that the economy has slipped into a recession.
UK 10-year gilts yields were below those on 2-year bonds for the second straight session. Inversion of the yield curve is conventionally taken as an indication of an impending recession.
The blue-chip share index has lagged other major markets this year, underlying the additional turmoil Brexit has brought on.
Oil major BP rose 1.95% after it announced that its upstream business head Bernard Looney would succeed CEO Bob Dudley.
Retailer Tesco (down 0.17%) and tobacco giant Imperial Brands (down 0.89%) also announced CEO departures this week.
The midcap index FTSE 250 was up 0.42% at the time of writing.
Stocks of mining giants were mostly trading in positive territory at the time of writing. Antofagasta and Anglo American added 1.16% and 1.62% respectively at the time of writing.
On the technical front, the RSI is currently at 39.63% and suggests that the market can move in the upward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands but is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Buy at 7110. Take Profit at 7145. Stop Loss at 7092