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FTSE 100 futures are currently trading at 6118.9-higher by 2.41% as compared to the previous closing. The contract closed in the negative territory in the last trading session.
In the cash markets, the FTSE 100 added 0.27% at the time of writing. The index today was on track to snap a four-day losing streak. The FTSE 100 was also set to post its worst weekly fall in around three months.
The index advanced today as cyclical stocks rose, although there was some caution among traders after data showed the British economy contracted the most on record in April.
Cyclical shares including insurers, banks, and oil & gas led the rally today.
Concerns of the second wave of COVID-19 outbreak in the US after the pace of growth in new infections picked up added to the cautious sentiment.
The midcap FTSE 250 was up 1.13% at the time of writing.
Housebuilders were trading higher on Friday. Taylor Wimpey and Barratt Developments rose 1.45% and 1.00% respectively at the time of writing.
Oil majors BP and Royal Dutch Shell gained 0.12% and 1.28% despite a decline in crude prices.
Other top gainers in the index include Melrose Industries (up 7.02%), Pearson plc. (up 12.16%), and Carnival Plc. (up 8.87%) at the time of writing.
On the other hand, top losers in the FTSE 100 include BAE Systems (down 2.48%), WPP PLC (down 2.14%), and Ashtead Group (down 1.84%) at the time of writing.
On the data front, UK GDP data for the month of April was released on Friday. The MoM rate of change in the GDP was -20.4%. The GDP growth was below the market expectation of a fall of 18.7%.
In addition, Manufacturing Production (MoM) for April also released earlier today came in at -24.3%. Manufacturing Production was below the market expectation of a fall of 15.8%.
On the technical front, the RSI is currently at 50.16% and suggests that the market can move in the upward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands but is heading upwards.
Overall Bias is Positive and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Buy at 6100. Take Profit at 6170. Stop Loss at 6070