FTSE 100 INCHES UP ON WEAKER POUND; CPI DISAPPOINTS
FTSE 100 futures are currently trading at 7314-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 0.17% to 7,340.97 at the time of writing.
The broad-market index inched up today on the back of a weaker pound as lawmakers signaled they would not back the PM’s latest Brexit compromise.
The midcap index FTSE 250 was down 0.43% at the time of writing.
Stocks of exporters rose on the weaker pound. Unilever rose 1.6%, while GlaxoSmithKline inched up 0.39% and British American Tobacco added 0.017% at the time of writing.
Asia-focused HSBC stocks inched up 0.74% at the time of writing.
Oil major BP added 0.37% at the time of writing.
On the other hand, Marks & Spencer stocks plunged to more than four-month low today. M&S fell after it reported a third straight decline in annual profit. The company also priced a rights issue at a big discount to its Tuesday’s closing price.
Blue-chip housebuilders including Barratt and Persimmon fell more than 3% after rising on Tuesday.
Stocks of SSE declined 2.92% after it reported a fall in annual earnings and warned of an uncertain outlook due to the opposition Labour party’s plans to renationalize energy networks.
Mining stocks also fell today. Antofagasta and Anglo American lost 2.41% and 0.69% respectively at the time of writing.
On the economic front, CPI (YoY) for April released earlier today came in at 2.1%. The CPI change was below the market expectation of 2.2%. In addition, RPI (YoY) for April also out today came in at 3.0%. The RPI change was above the market expectation of 2.8%.
On the technical front, the RSI is currently at 52.42% and suggests that the market can move in the downward direction. The current price is above the MA5. 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- Stop Sell at 7313. Take Profit at 7282. Stop Loss at 7327