FTSE 100 RISES AS EXPORTERS LEAD GAINS, BREXIT IN FOCUS
FTSE 100 futures are currently trading at 7151.8-higher by 0.61% 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, whose components make two-thirds of their earnings abroad, added 0.57% to 7,184.03 at the time of writing.
The broad market index, however, lagged its European peers today, as the pound rose on a report that the European Union was ready to make a major concession on the Brexit divorce deal.
A report that the European Union was ready to offer a concession to the contested Irish backstop plan boosted the British currency.
Stocks of Exporters also holding on to their gains made earlier in the session when Brexit sentiment was unclear. Reckitt Benckiser and GlaxoSmithKline added 1.00% and 0.55% respectively at the time of writing.
Just Eat (up 1.06%) was among the top gainers on the index, after its Dutch rival Takeaway.com reported a rise in quarterly orders.
Financials that have been dropped in 2019, due to fears of a recession and Hong Kong protests, gained 0.6%.
With U.S.-China trade talks set to begin on Thursday and as the Brexit process drags on, investor sentiment has been on the cautious side since the new quarter started.
Oil major BP gained 1.16% as crude prices rose on Wednesday on renewed trade hopes ahead of trade talks scheduled for tomorrow.
The FTSE 100 has gained about 7% since the start of this year.
The midcap index FTSE 250 was up 0.13% at the time of writing.
Stocks of mining giants were trading mixed at the time of writing. Antofagasta lost 0.66% while Anglo American added 1.87% at the time of writing.
On the technical front, the RSI is currently at 39.63% and suggests that the market can move in the upward direction. The current price is below 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 7150. Take Profit at 7185. Stop Loss at 7132