FTSE 100 index adds 0.26% at 7,388 registering gains for third consecutive session making fresh monthly highs on growing optimism over China-US trade deal after US said to be ready to suspend the planned December 15th tariff hikes, and as investors digest the Fed interest rate cut. On the data front, UK Services PMI came in at 50, topping forecasts of 49.7 in October and above the previous reading of 49.5. The services sector in UK is the biggest contributor to GDP and the 50 print today indicates that the services sector has turned the momentum to positive and in the upcoming months might break above 50 that will signal expansion for the sector.
The Caixin Manufacturing PMI came in at 51.7, topping expectations of 51 in October and 51.4 reading in September. The United Kingdom Manufacturing PMI came in at 49.6 topping expectations of 48.1 in October.
UK heads to general election in December that increases the uncertainty for the short term but might clarify the political situation for 2020.
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FTSE 100 Levels to Watch
On the technical analysis side, FTSE 100 makes fresh monthly high today after the index tested the 50-day moving average at 7,255. The index formed a death cross pattern on October 10, as the 50-day moving average crossed below the 200-day MA giving a bearish signal for FTSE.
On the upside FTSE 100 facing immediate resistance at 7,402 daily high and then at 7,440 the high from September 27th. If the index manages to pierce above convincingly could open the way for a move up to 7,580 the August highs.
On the downside, immediate support stands at 7,369.6 today’s low, while a break below will open the way for a test of 7,335 the 100-day moving average. Below this support, the next support target comes at 7.288 the 200-day moving average. European equity indices also trading higher today, Dax 30 is 0.02% higher at 13,135 the CAC 40 in Paris trading 0.14% higher at 5,832, In Milan, the FTSE MIB is 0.11% higher at 23,336.
In Wall Street, the Dow Jones futures is 0.22% higher at 27,439, the S&P 500 futures are 0.18% higher at 3,081 while the Nasdaq futures are 0.25% higher at 8,236 signalling a positive start forequities in the other side of the Atlantic.Download our latest quarterly market outlook for our longer-term trade ideas.
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