FTSE 100 WOBBLY ON BREXIT CONCERNS, SERVICES PMI
FTSE 100 futures are currently trading at 6951.5-higher by 0.23% as compared to the previous closing. The index futures have been closing in the negative territory since the last 5 trading sessions.
In the cash markets, FTSE 100 was down 1.02% at the time of writing. The index was on track for its worst day since 22nd November. UK equities today dropped to their lowest in nine days taking their lead from Wall Street, amid concerns that the British PM will struggle to get her Brexit plan through Parliament.
The midcap index FTSE 250 was up 0.01% at the time of writing.
On Tuesday, British PM Theresa May suffered embarrassing defeats at the start of five days of debate leading up to a Parliamentary vote on 11th December on her proposed agreement.
The European Court of Justice’s advocate-general announced his opinion on Tuesday that Britain could revoke its notice to withdraw from the EU without agreement of the other 27 states.
Index-member Hargreaves Lansdown was down 3.7% and on track for its worst day since 23rd October. The stock fell after Morgan Stanley cut its ratings to underweight, noting that a weaker UK economic outlook is likely to hit 2019 flows, and weaker stockbroking fees, among other pressures.
Oil prices dropped ahead of the OPEC meeting beginning 6th December. Oil stocks on the index BP PLC and Royal Dutch Shell PLC were down 1.5% and 2% respectively at the time of writing.
Other top losers in the FTSE 100 include- RELX (down 2.5%), Ashtead (down 6.9%) and Rolls-Royce (down 3.7%) at the time of writing.
On the other hand, biotech company Shire was up 2.8% after Takeda Pharmaceutical shareholders approved a $59 billion takeover of the London-listed company, the biggest overseas acquisition by a Japanese company.
On the data front, U.K. Services PMI for November released earlier today came in at 50.4. The Index reading was below the median forecast of 52.5 with the PMI reading being 52.2 in the previous month.
On the technical front, the RSI is currently at 44.26% 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 tight Stop Loss and Profit targets.
Trade Suggestion- Limit Sell at 6975. Take Profit at 6925. Stop Loss at 7000