FTSE 100 RISES ABOVE MA5 AS TRADE TENSIONS EASE, BREXIT IN FOCUS
FTSE 100 futures are currently trading at 7206-higher by 0.11% 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 inched up 0.15% to 7,252.57 at the time of writing.
The broad-market index rose today as risk appetite picked up after the U.S. President played down Washington’s trade war with Beijing, while earnings reports drove major stock moves.
The midcap index FTSE 250 was down 0.18% at the time of writing.
The U.K. government announced that PM Theresa May will bring her Brexit deal back to Parliament in the week of 3rd June.
Meanwhile, the main opposition Labour Party said earlier today that it cannot support legislation to ratify PM May’s Brexit deal if it has not reached a compromise agreement with the government.
Compass Group was among the top gainers on the index. Stocks of the company rose 2.83% after it raised its forecast for annual organic revenue growth.
TUI inched up 0.17% despite warning that lack of clarity over the status of its grounded Boeing 737 MAX planes could hit profits.
Asia-focused HSBC stocks inched up 0.78% at the time of writing.
Stocks of exporters like British American Tobacco and GlaxoSmithKline rose 0.05% and 1.24% respectively.
On the other hand, Kingfisher fell 2.60% after lower quarterly sales in France, its second-largest market.
Utilities National Grid and SSE dropped amid media reports on Labour Party leader Jeremy Corbyn’s plans to nationalize energy networks at below market value.
Mining stocks also fell today. Antofagasta and Anglo American lost 1.50% and 1.38% respectively at the time of writing.
Oil major BP inched down 0.22% at the time of writing.
On the technical front, the RSI is currently at 43.88% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the lower band of the Bollinger Bands and 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 7200. Take Profit at 7230. Stop Loss at 7185