FTSE 100 Drifts Lower Ahead of New Commons Election Vote

FTSE 100 drifted lower at the London open ahead of PM Johnson’s fourth attempt to go to early general elections in December. After it created a fresh 4-week high of 7347 yesterday, FTSE 100 has dropped to below 7300 this morning.

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After the House of Commons rejected a call for a December 12 election yesterday, PM Johnson is widely expected to table a different bill, this time needing only a simple majority.

“Although Parliament tonight voted against holding a general election, it seems likely that MPs will soon change their minds and in the next day or two will vote for an election that will decide the fate of Brexit,” said Paul Dales of Capital Economics.

FTSE 100 made a fresh 4-week high of 7347 yesterday, however, the index has briefly dropped below 7300 this morning, before eventually recovering to 7308. The price action is currently retesting the broken descending trend line.

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