FTSE 100 trades 0.14% higher at 7,152.19 as Brexit is back in focus after a report says that EU is prepared to provide a mechanism for Northern Ireland to leave the Irish backstop after a set number of years. Equity investors are cautious ahead of this week’s trade talks between China and US. The negotiations are starting Thursday, ahead of an increase in U.S. tariffs on $250 billion worth of Chinese imports, to 30% from 25% on 15th October 2019. Last week the U.S. Government announced tariffs on $7.5 billion worth of European exports from cheese to whisky.
In its financial policy committee meeting minutes released earlier 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 Technical Analysis
On the technical side, FTSE 100 consolidates above seven-week lows taking advantage by better unemployment data from US last Friday and a weak Pound. On the downside, immediate support stands at 7,139 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 7,174 daily high and then at 7.247 the 200-day moving average, a close above could open the way for a move up to 7,340 the 100-day moving average.