• support@capitalstreetfx.in     0124.400.4440

About Us

Capital Street Inter markets Limited is a Global Business Company (GBC1) incorporated and regulated by the Financial Services Commission, Mauritius. It is fully licensed and regulated by the FSC Mauritius, as a Full Services Investment Dealer....

Contact Info

  • 9th Floor, Ebene Tower, 52 Cybercity Ebene, Republic of Mauritius

  • +1-949-335-4314

  • support@capitalstreetfx.in

  • Sunday: Closed

FTSE 100 WOBBLY ON BREXIT AND EARNINGS - Capital Street FX

    • Home
    • News
    • FTSE 100 WOBBLY ON BREXIT AND EARNINGS
07-Feb
20:20 IST

FTSE 100 futures are currently trading at 7063-lower by 0.39% as compared to the previous closing. The contract closed in the negative territory in the last trading session also.

In the cash markets, the blue-chip share index inched down 0.58% to 7131.28 at the time of writing. The broad-market index rose earlier in the session as a weaker pound helped international shares eke out gains and offset poor results from tour operator TUI and pressure from advertising group WPP.

The midcap index FTSE 250 was down 0.97% at the time of writing.

The European Union today promised to work with British PM Theresa May on whether a way can be found to avoid the disruption of a no-deal Brexit after the PM demanded changes to the divorce deal to get it through parliament.

On the interest rate front, the Bank of England held Interest rates unchanged at 0.75% in its decision released earlier today. The central bank also projected the weakest economic outlook for the U.K. economy since 2009.

Index-member TUI AG fell 18.3% to their lowest in nearly two years on Thursday. TUI’s stock fell after the tour operator slashed its earnings forecast for the fiscal year, blaming weakness in the pound and hot weather last summer which it said discouraged people from booking trips abroad.

Advertising agency WPP slumped 5.7% after French rival Publicis reported negative revenue growth for the fourth quarter – far weaker than the market expectations.

Online grocer Ocado dropped another 13.18%, after sliding 6.3% on Wednesday, its worst day in almost three months on Wednesday after warning a fire at its flagship robotic distribution center would hit sales growth.

On the other hand, Companies which have their earnings in Dollar rose after the pound slipped ahead of BoE meeting today. Diageo climbed 2.02% while GlaxoSmithKline, British American Tobacco, and Imperial Brands all gained around 1%.

Compass Group, the world’s biggest catering firm, rose 3.95% after reporting higher first-quarter organic revenue and providing a bullish full-year forecast.

On the technical front, the RSI is currently at 64.38% and suggests that the market can move in the downward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger Bands but 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 7070. Take Profit at 7030. Stop Loss at 7090

Leave a Reply

Your email address will not be published. Required fields are marked *