FTSE 100 INCHES UP, LAWMAKERS VOTE ON BREXIT PROCESS AWAITED
FTSE 100 futures are currently trading at 7108-lower by 0.26% 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 0.18% to 7207.18 at the time of writing. Financials and mining shares supported the benchmark today as investors awaited indicative votes on a series of alternate Brexit options in parliament, while midcap Bellway’s upbeat first-half boosted housebuilders.
PM Theresa May will address Conservative Party lawmakers at 1700 GMT today, possibly to set out a timetable for her departure, to win support for her twice-rejected Brexit deal as the parliament prepares to vote on a variety of possible options later today.
The midcap index FTSE 250 was up 0.22% at the time of writing.
Royal Bank of Scotland, Barclays, and Lloyds were trading in positive territory with gains attributing to hopes that lawmakers could agree to a possible next course of action which could lead to a softer Brexit.
Also, strong half-year results from homebuilder Bellway sparked gains in housebuilders, which are considered to be particularly Brexit-sensitive. Barratt, Persimmon and Taylor Wimpey were among the top gainers on the benchmark index.
Companies with greater exposure to China including HSBC and Burberry were trading in positive territory.
Miners on the index also gained as most base metals were higher with investors focusing on tight inventories and the resumption of U.S.-China trade talks. Rio Tinto added 0.58% at the time of writing.
Other top gainers in the index include- Paddy Power (up 3.81%), Ashtead (up 3.00%) and Micro Focus International (up 2.56%) at the time of writing.
The Confederation of British Industry said earlier today that British retail sales dropped by their most in 17 months in March, reflecting concern among shoppers about Britain’s unresolved Brexit impasse. The CBI Distributive Trades Survey for March released on Wednesday fell to -18 from 0 in the last month. The markets had expected a reading of 5 for the index. The CBI said some of the declines might have been caused by Easter’s coming later this year than last year.
On the technical front, the RSI is currently at 50.76% and suggests that the market can continue trading sideways. The current price is below the MA5. The %K has crossed %D from above to the downside at around 85% and suggests that the market can move in the downward direction.
Overall Bias is negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Sell at 7130. Take Profit at 7090. Stop Loss at 7150