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FTSE 100 Starts the Week Muted On Strong GBP

ftse gbpusd

FTSE 100 started the week muted after Brexit party has stood down from 43 non-Tory seats while tomorrow, Boris Johnson is scheduled to have a debate with Labour Party leader Jeremy Corbyn. On Friday, the Dow Jones Industrials breached the 28,000 mark for the first time on the closing bell after signs that China and US are close to a trade deal.

On the data front, Rightmove prices for new properties entering market in the UK dropped by 1.3% or £3,904 compared to October, as the number of new sellers dropped by 14.9% in comparison to a year ago. Last week,  the UK GDP report for the 3Q disappointed forecasts at 0.3% vs 0.4%. Manufacturing production showed a 0.4% contraction versus a -0.2% consensus. Average earnings also printed lower at 3.6% than estimates at 3.8%

UK heads to the general election in early December that increases the economic uncertainty for the short term but might clarify the political situation for 2020.

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FTSE 100 Support and Resistance

FTSE is adding 0.01% at 7,303.02 in early trading. On the technical side, FTSE 100 continues the consolidation around the 200-day moving average and bulls looking for a convincing close above in order to regain the control. 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 the FTSE 100 facing first resistance at 7,316 daily high and then at 7,328 the 100-day moving average, next hurdle is the 7,440 mark the high from September 27th. If FTSE 100 manages to break above that level convincingly could open the way for a move up to 7,580 the August highs.

On the flipside, first support stands at 7,300 today’s low, while a break below that support level will open the way for a test of 7.286 the 50-day moving average. The low from November 1st at 7,46 will provide further support.

European stock indices started lower today, Dax 30 is 0.07% lower at 13,231 the CAC 40 in Paris trading 0.12% lower at 5,932, In Milan, the FTSE MIB is 0.16% lower at 23,545.

In Wall Street futures are trading higher, the Dow futures are 0.20% higher at 28,010, the S&P 500 futures are 0.14% higher at 3,122 while the Nasdaq futures are 0.20% higher at 8,335 signalling a positive start for equities in the other side of the Atlantic.More content