FTSE 100 RISES AS OIL STOCKS GAIN; BREXIT IN FOCUS
FTSE 100 futures are currently trading at 7215-higher by 0.55% 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 0.66% to 7,232.41 at the time of writing. The FTSE 100 gained today after two consecutive sessions of losses.
The broad-market index inched up today supported by rise in heavyweight oil company stocks, although some aversion to risky assets prevailed on persistent Sino-U.S. trade concerns.
The midcap index FTSE 250 was up 0.93% at the time of writing.
Meanwhile, Britain’s main opposition Labour party leader Jeremy Corbyn said earlier today that there is a danger of a no-deal Brexit and the Party will do everything it can to stop that from happening,
Oil major BP rose and boosted the benchmark index as oil prices gained today after an industry report indicated a higher-than-expected fall in U.S. crude inventories.
Stocks of exporters rose on a weaker pound. Unilever added 0.68%, while British American Tobacco inched up 0.82% at the time of writing.
Blue-chip housebuilders including Barratt and Persimmon rose more than 1%.
Mining stocks also rose today. Antofagasta and Anglo American added 0.17% and 1.58% respectively at the time of writing.
On the other hand, index-member Johnson Matthey plunged 5.56% after the company’s annual profit missed market expectations.
Energy Utility National Grid slipped 0.50% as its stocks traded ex-dividend. Stocks of Marks & Spencer also fell earlier in the session before edging up 0.18% as the retailer’s stocks were also traded ex-dividend.
Asia-focused HSBC stocks declined 0.15% at the time of writing.
On the data front, U.K. GfK Consumer Confidence for May is scheduled to be released early on Friday. The index reading is expected to rise to -12 from -13 in the previous month.
On the technical front, the RSI is currently at 45.73% 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 7209. Take Profit at 7239. Stop Loss at 7193