FTSE 100 UNSTABLE ABOVE 7K AHEAD OF ANOTHER KEY BREXIT VOTE
FTSE 100 futures are currently trading at 7061-lower by 0.98% as compared to the previous closing. The contract closed in the negative territory in the last trading session also.
In the cash markets, the blue-chip share index edged up 0.03% to 7153.51 at the time of writing. The broad-market index inched up today led by gains in oil majors and miners, though investors remained cautious a day after lawmakers rejected PM Theresa May’s revised Brexit deal.
The midcap index FTSE 250 was up 0.10% at the time of writing.
Lawmakers voted against PM May’s amended Brexit deal on Tuesday, forcing parliament to decide whether to back a no-deal Brexit or seek a last-minute delay to the process.
Parliament will vote later today on whether to leave the bloc with no deal. If a no-deal exit plan is rejected, a vote on Thursday will decide whether to seek to extend the Brexit deadline.
Oil heavyweights such as BP and others boosted the main bourse as oil prices rose on ongoing supply cuts from producer group OPEC and U.S. sanctions against Iran and Venezuela.
The benchmark was also supported by Standard Life Aberdeen which rose 2.71%, on track for its best day since early January, after posting full-year results and saying that it was doing away with a dual-CEO management structure.
Prudential PLC added 1.01% after it said its profit rose in 2018, led by increasing new business in Asia.
Gains on the index were limited by a fall in financial and industrial shares, as well as gambling firm GVC, which plunged 4.93% to its lowest level since June 2016.
Drugmaker Hikma fell 5.93% after lower-than-expected full-year profit and retailer Kingfisher declined 0.72% after a Stifel downgrade.
On the economic front, RICS House Price Balance for February is scheduled to be released early on Thursday. The index is expected to fall 24% from 22% in the previous month.
On the technical front, the RSI is currently at 48.02% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards.
Overall Bias is negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Sell at 7070. Take Profit at 7030. Stop Loss at 7090