FTSE 100 trades lower despite the positive opening as investors wait for clues from the central bank’s meetings, today from Fed and tomorrow from ECB. On the election front latest poll shows a narrowing Boris Johnson lead. The Conservative majority now dropped to 28 seats from 68 seats, increasing the possibility of a hung UK parliament. The poll pushed GBPUSD lower and that is supportive for FTSE.
Trade negotiations between China and USA continue as we approach the December 15th deadline of the new tariffs to be imposed on Chinese products.
FTSE 100 technical outlook is negative for the short term as the previous week correction broke below all significant daily moving averages. Yesterday in the daily chart FTSE formed a hammer pattern which might signal bullish reversal for the index.