FTSE 100 Under Pressure As EU Might Trigger Legal Action Against UK

FTSE 100 started on negative foot the session after yesterday’s sharp gains and despite a strong close in Wall Street. No-deal Brexit fears weigh on sentiment after the UK Parliament introduced the Internal Markets Bill, which will create steps for a safety net in the case of no-deal Brexit and protect jobs in the UK.

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European Commission (EC) President Ursula von der Leyen said that Internal Markets Bill breaks the international law and would undermine trust between the two sides. EU threatens legal action against the UK if the negotiations today do not provide reassurance that the UK will not break the Brexit withdrawal agreement. Meanwhile, the Irish Prime Minister Martin said that he is not optimistic about striking a Brexit deal any time soon.

FTSE 100 index was under pressure the previous weeks as the British Pound rise against the US Dollar, but the return of the no-deal Brexit fears started a correction in the sterling.

Among the top risers in FTSE 100 is NatWest Group plc, which is 1.25% higher at 105.13 and GVC Holdings is 1.26% higher at 850.10. On the other hand, Morrison is 4.56% lower at 186.72; BHP Group is 1.65% lower at 1,691, Tesco is 1.43% lower at 220.45, Lloyds Banking Group is 0.34% lower at 26.38 after the announcement of 865 job cuts and Barclays share price is 0.15% lower at 104.76.

FTSE 100 Technical Analysis

FTSE 100 rebound from four-month lows has stalled today, and the index gives up 0.80% at 5,964 as the bearish momentum persists. Bulls need to break above the 100-day moving average at 6,079 to regain control of the short term. 

On the downside, first support for the FTSE 100 stands at 5,961 the daily low. More bids would emerge at 5,867 the low from September 8 trading session. On the upside, the top from yesterday’s trading session is the first obstacle at 6,031, which guards the 100-day moving average strong resistance. 

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FTSE 100 Daily Chart

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