FTSE 100 RISES ON HOPES OF TRADE RESOLUTION, BREXIT IN FOCUS
FTSE 100 futures are currently trading at 7343.3-higher by 0.78% as compared to the previous closing. The contract closed in the positive territory in the last trading session also.
In the cash markets, the FTSE 100 added 0.98% to 7,339.07 at the time of writing. The blue-chip share index gained today supported by hopes of monetary stimulus from central banks, while signs of a thaw in the U.S.-China trade war provided relief to traders.
The midcap index FTSE 250 was up 1.19% at the time of writing.
Mining heavyweights and Asia-facing financials were top gainers on the benchmark index after a report disclosed that China will introduce important measures to ease the negative impact of the trade dispute with the U.S.
China said today that it will exempt 16 types of U.S. products from additional retaliatory tariffs. These include whey and fish meal, along with some lubricants.
Stocks of some blue-chip exporters such as consumer goods giant Unilever dropped as the pound gained ahead of a speech from opposition party deputy leader Tom Watson.
Deputy leader Watson is expected to demand that the Labour Party campaign against Brexit and push for a referendum to reverse the planned departure before any election.
The U.K. PM’s decision to suspend parliament until 14th October has been ruled as unlawful by Scotland’s highest court.
The European Central Bank’s interest rate decision is scheduled to be released on Thursday. No change in policy is expected and Interest rates are expected to hold at 0.00%.
Homebuilders also advanced today with Taylor Wimpey gaining 1.7% and Barratt Developments rising 2.4%.
On the technical front, the RSI is currently at 58.15% 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 7336. Take Profit at 7378. Stop Loss at 7215