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FTSE 100 Retreats, Digesting Developments in Brexit and Trade Talks

FTSE 100
FTSE 100

FTSE 100 trades 0.59% lower at 7,204.83 snapping three consecutive days of gains as the initial Brexit optimism fades away. EU negotiators said over the weekend that PM Boris Johnson’s Brexit plan was not good enough. Equity investors are cautious as trying to digest the US-China trade agreement reached last week Friday.

In its financial policy committee meeting minutes released last week, the Bank of England (BOE) said that UK financial system is prepeared for Brexit. Brexit uncertainties weighing on UK economy and US-China trade tensions pose biggest near-term risk to global economy.

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FTSE 100 Support and Resistance Levels

On the technical side, FTSE 100 consolidation pattern continues, above seven-week lows amid Brexit headlines and hIgh volatility in GBPUSD. On the downside, immediate support stands at 7,196 today’s low, while a break below will open the way for a test of 7,027 the August low. Below this level, the next support comes in at the lows seen on February 2019,  at 6,966. On the upside the index facing the resistance at 7,251 daily high and then at 7.255 the 200-day moving average, a close above could open the way for a move up to 7,338 the 100-day moving average.

European indices also trading lower today, Dax 30 is 0.86% lower at 12,404 the CAC 40 in Paris trading 0.97% lower at 5,610, In Milan, the FTSE MIB is 0.66% lower at 22,021. In Wall Street, the Dow Jones futures trading 0.46% lower at 26,653, the S&P 500 futures are 0.51% lower at 2,955 while the Nasdaq futures are 0.58% lower at 7,813 signalling a negative start for equities in the other side of the Atlantic.

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