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FTSE 100 FALLS ON WEAK EARNINGS; BREXIT IN FOCUS - Capital Street FX

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    • FTSE 100 FALLS ON WEAK EARNINGS; BREXIT IN FOCUS
08-May
19:11 IST

FTSE 100 futures are currently trading at 7182-lower by 1.97% as compared to the previous closing. The contract, however, closed in the positive territory in the last trading session.

In the cash markets, the blue-chip share index inched down 0.26% to 7,241.27 at the time of writing. The broad-market index dragged lower by weak earnings and increasing Sino-U.S. trade tensions.

The midcap index FTSE 250 was down 0.022% at the time of writing.

The U.K. Conservative government resumed its negotiations with the main opposition Labour Party in bid to break the parliamentary deadlock over the U.K.’s departure from the European Union. The pound fell to around $1.30 today amid reports that talks to break the deadlock may soon collapse.

The dollar was weaker on concerns about a deepening U.S.-Chinese trade row. Stocks of exporters like British American Tobacco and GlaxoSmithKline dropped as a result.

Financial shares exposed to Asia including HSBC and Prudential were also trading in negative territory at the time of writing.

Tobacco company Imperial Brands affirmed its full-year forecast on Wednesday. Stocks of company, however, lost 5.35% on weaker-than-expected sales of e-cigarettes.

Index-member ITV plunged 4.9% after it reported lower revenues ahead of the launch of its streaming service.

Insurance company Direct Line fell 1.7% after it reported a fall in quarterly gross written premiums.

Stocks of Sainsbury’s dropped 1.68% after Bank of America lowered its rating to “neutral”, citing recent underperformance.

Mining stocks also dropped today. Antofagasta and Anglo American lost 1.34% and 1.58% respectively at the time of writing.

On the other hand, Oil majors gained today after a sell-off on Tuesday. BP inched up 0.79% at the time of writing.

On the economic front, U.K. Halifax House Price Index (MoM) for April released earlier today came in at 1.1%. The index change was above the market expectation of 0.1%.

On the technical front, the RSI is currently at 36.51% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the lower band of the Bollinger Bands and is heading downwards.

Overall Bias is negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.

 

Trade Suggestion- Limit Sell at 7190. Take Profit at 7160. Stop Loss at 7205

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