FTSE 100 UP AFTER UK, EU AGREE ON BREXIT DEAL
FTSE 100 futures are currently trading at 7088-higher by 1.05% as compared to the last closing. The index futures turned positive today after closing in the negative territory over the last two trading sessions.
In the cash markets, the index was up 0.80% at the time of writing. Earlier in the session, the index was down in the negative territory, hit by a commodities selloff and nerves over Brexit.
U.K. equities outperformed today after news that the British PM had finally sealed a Brexit agreement with the European Union. PM May got the deal but she still needs to get her Cabinet to back it.
Index-member, Copper miner Antofagasta fell the most, losing 3.45% (at the time of writing), as copper prices slid on weak China retail sales data.
Rio Tinto, BHP Billiton, Evraz, and Glencore were down more than 3% at the time of writing.
Smiths Group was among the top gainers in the index, up 3.5% at the time of writing. The British engineer said it planned to spin off its healthcare business to focus on industrial technology, two months after a 7 billion-pound deal to merge it with U.S.-based ICU Medical collapsed.
Micro Focus stocks were up 9.6% after Goldman Sachs upgraded it to “buy”. The company also said it had bought back 213,400 of its shares as part of a $400 million buyback programme.
Other top gainers in the FTSE 100 include- Paddy (up 7.1%), GVC (up 5%) and Kingfisher (up 3.5%) at the time of writing.
On the data front, UK CPI (MoM) for October released earlier came in at 0.1%. The CPI change was below the market expectation of 0.2% with a 0.1% rate of growth seen in the previous month. In addition, the PPI Input (MoM) for October also released earlier came in at 0.8%. The PPI growth was above the market expectation of 0.6% with a 1.4% rate of growth seen in September.
On the technical front, the RSI is currently at 49.81% 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 tight Stop Loss and Profit targets.
Trade Suggestion- Stop Buy at 7100. Take Profit at 7150. Stop Loss at 7075.