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FTSE 100 WOBBLY ON APPLE-INDUCED GROWTH CONCERNS & PMI - Capital Street FX

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    • FTSE 100 WOBBLY ON APPLE-INDUCED GROWTH CONCERNS & PMI
03-Jan
19:36 IST

FTSE 100 futures are currently trading at 6663-lower by 0.47% as compared to the previous closing. However, the contract closed in the positive territory in the previous trading session.

In the cash markets, FTSE 100 inched down 0.08% at the time of writing. A rare revenue warning from smartphone giant Apple triggered a new wave of selling in UK stocks earlier today as investors’ concerns of slowing global growth were confirmed, though fashion retailer Next provided some post-festive cheer.

Trading volume for FTSE 100 remained low, just 13% of the 90-day average daily turnover changed hands in the first two hours after the market opened on Thursday.

The midcap index FTSE 250 was down 0.13% at the time of writing.

In a first in more than a decade, Apple on Wednesday cut its quarterly sales target with the CEO blaming weak iPhone sales in China and consumers upgrading their iPhones at a slower pace.

Concerns over economic growth in top metals consumer China sent index-members Rio Tinto, BHP, Glencore, and Antofagasta down 0.8 to 2.2 percent at the time of writing. However, a six-month high in gold boosted miner Fresnillo 3.9% higher.

Luxury brand Burberry, sensitive to signs of slowing demand in China, fell 5.8% and was among the top losers in the index.

A bright spot helping keep a lid on the negative sentiment was high street clothing retailer Next, which added 5.5% and was on track for its best day in more than three months. The stock rose today after reporting higher sales in the run-up to Christmas, reducing fears of poor festive trading.

Next’s encouraging update also helped stocks of index-constituents Marks & Spencer, Tesco and Primark-owner Associated British Foods advance 2 to 2.4 percent at the time of writing.

Still, investors continued to fret about a slowdown in the global economy, Brexit uncertainties and falling crude prices.

Data released earlier today indicated that growth in Britain’s Construction sector fell to a three-month low in December and also highlighted delays in commercial projects due to Brexit. The Construction PMI came in at 52.8- below the consensus estimates of 52.9.

On the technical front, the RSI is currently at 41.39% and suggests that the market can continue trading sideways. The current price is above the MA5 (6656). 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 6650. Take Profit at 6685. Stop Loss at 6630

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