FTSE 100 RISES ABOVE MA5 ON VODAFONE SIGNAL, BREXIT IN FOCUS
FTSE 100 futures are currently trading at 7477.8-higher by 0.93% 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 inched up 0.65% to 7,537.96 at the time of writing. The broad-market index rose today led by gains of Vodafone and Pearson, even as miners weighed.
The midcap index FTSE 250 was up 0.10% at the time of writing.
U.K. PM Boris Johnson said on Thursday that he wanted to abolish the backstop, an insurance policy designed to prevent the return of a hard border between Ireland and Northern Ireland in the event of longer-term trade talks collapsing. The backstop is a part of Brexit withdrawal agreement which former PM May negotiated with Brussels last year.
Index member Vodafone rose 9.94% after it announced plans to separate its mobile mast infrastructure in 10 European markets into a new organization that it could potentially list. It was also its largest one-day gain in six years.
Blue-chip housebuilders, which are seen as particularly vulnerable to any fallout from Brexit, were trading in positive territory today. Barratt Developments rose 1.13%, Persimmon added 0.68% and Taylor Wimpey advanced 0.98%.
Stocks of Pearson surged 5.83% after saying that it had traded well in the first half of 2019.
Miners, however, weighed on the benchmark index. Anglo American fell 4.02% after its biggest shareholder said that he was divesting about 20% stake and as copper prices dropped. Antofagasta and BHP fell 2.75% and 1.10% respectively at the time of writing.
Oil major BP edged down 0.038% at the time of writing.
The broad-market index is on track for its second straight month of gains, supported by hopes of more stimulus from central banks globally and weakness in the British Pound amid Brexit concerns. The benchmark posted a monthly loss only in May this year when Sino-U.S. trade tensions flared.
On the technical front, the RSI is currently at 63.16% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line 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 7471. Take Profit at 7501. Stop Loss at 7456