FTSE 100 started the session 0.81% lower at 7,306.1 as President Trump failed to inspire investors after mixed comments; President said that China-US trade deal might happen soon and the phase one agreement is close, but he also said that if a deal isn’t reached the US will raise tariffs. Meanwhile escalating tensions in Hong Kong also weigh on equities around the globe.
On the data front, the Conusmer Price Index (MoM) registered at -0.2%, below forecasts (-0.1%) in October, the Core Consumer Price Index came in at 1.7% in line with forecasts. The PPI-Input came in at -1.3% below forecast of -1.2%, while the DCLG House Price indecame in at 1.3% below expectations of 1.5%.
In the latest poll, the Conservatives lead by 14 points over Labour after Nigel Farage’s announcement that he would withdraw Brexit party from candidates from Tory-held seats.
UK heads to the general election in December that increases the uncertainty for the short term but might clarify the political situation for 2020.
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FTSE 100 Technical Levels to Watch
On the technical side, FTSE is testing today the 100-day moving average which if broken might have negative implication for the index. 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 downside, first support stands at 7,306.2 today’s low, while a break below that support level will open the way for a test of 7,304 the 200-day moving average. Below this level, the next support target comes at 7.283 the 50-day moving average.
On the upside FTSE 100 facing immediate resistance at 7,365 daily high and then at 7,440 the high from September 27th. If FTSE 100 manages to pierce above that level convincingly could open the way for a move up to 7,580 the August highs.More content
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