FTSE 100 RISES ABOVE MA5 AS EXPORTERS, OIL MAJORS LEAD GAINS
FTSE 100 futures are currently trading at 7194.8-higher by 1.39% as compared to the previous closing. The contract, however, closed in the negative territory in the last trading session.
In the cash markets, the blue-chip share index added 1.15% to 7,207.12 at the time of writing.
The midcap index FTSE 250 was up 1.00% at the time of writing.
The benchmark index advanced today as oil majors tracked gains in oil prices and a weaker pound lifted stocks of exporters.
Investors are also waiting for the U.S. central bank’s July meeting minutes scheduled for later today for signs of further policy easing.
Exporters which get a part of their revenue in U.S. dollars outperformed today as the pound fell ahead of PM Johnson’s meeting with German Chancellor Angela Merkel. Imperial Brands and British American Tobacco rose more than 1.5% at the time of writing.
Stocks of mining giants mostly trading in positive territory at the time of writing. Antofagasta and Anglo American added 1.52% and 0.50% respectively at the time of writing.
Oil major BP gained 1.33% as crude prices rose today due to a larger than expected fall in U.S. crude oil inventories.
Homebuilders also outperformed today with Taylor Wimpey gaining 1.64% and Barratt Developments rising 1.51%.
The broad-market index is on track for its worst month in four years after back-to-back monthly gains.
On the economic front, U.K. Public Sector Net Borrowing for July released earlier today came in at -1.97B pounds. The markets, however, expected a fall of 2.65B pounds in the net borrowing for the month.
On the technical front, the RSI is currently at 47.38% and suggests that the market can move in the upward direction. The current price is above 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 7186. Take Profit at 7226. Stop Loss at 7166