FTSE 100 turned higher after positive headlines on trade negotiations cross the wires saying that US and China are close to signing a “phase one” deal. The index rebounds after three straight days of losses amid global trade tensions escalation after President Donald Trump announced the return of tariffs on steel and aluminium imports from Argentina and Brazil while threatened France imports with fresh tariffs as retaliation to the tax imposed by the French government on U.S. tech companies. President Trump from London yesterday said that the U.S. – China trade deal might wait until after the U.S. election on November 2020.
On the macro front the United Kingdom Services PMI came in at 49.3 above expectations of 48.6 for November.
Recent Polls Boost GBPUSD
The latest poll, shows that Conservatives increased the lead to 12% over Labour. Conservatives got 44% while Labour party captures 32%. The previous week poll provided an 11% lead.
Investors await a report on private-sector employment data from the USA and international trade data and a weekly report on crude oil inventories.
FTSE 100 Outlook Turns Negative
FTSE 100 index technical outlook has turned negative as the recent sharp drop pierced the major daily moving averages. On the upside the index needs a close above the daily top at 7,190 and then might target the next resistance at the 50-day moving average around 7,284. If the index breaks above that resistance then a move up to the 100-day moving average will be the next target at 7300.
On the downside, immediate support will be met at 7,139 the daily low. A convincing break below that support might force the FTSE 100 index down to the recent low at 7,063.
European Equities Are Higher on Trade Optimism
European equities trade higher today, the Dax 30 is 0.98% higher at 13,116 the CAC 40 in Paris trading 1.15% higher at 5,793 as risk appetite return after the positive headlines from the trade talks. In Milan, the FTSE MIB is 0.95% higher at 22,951.
In Wall Street futures are trading higher, the Dow futures are 0.46% higher at 27,614, the S&P 500 futures are 0.41% higher at 3,103 while the Nasdaq futures are 0.58% higher at 8,298 signalling a positive start for stock indices in the other side of the Atlantic.