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....
9th Floor, Ebene Tower, 52 Cybercity Ebene, Republic of Mauritius
FTSE 100 futures are currently trading at 5953-lower by 3.06% as compared to the previous closing. The contract, however, closed in the positive territory in the last trading session.
In the Cash Markets, the FTSE 100 edged up 0.072% to 5,964.54 at the time of writing.
The broad-market index rose earlier in the session after the UK’s central bank cut interest rates to shore up the economy from the rapid spread of the pneumonia-causing virus.
Housebuilders-particularly sensitive to the domestic economy- were trading in positive territory on Wednesday. Taylor Wimpey and Barratt Developments rose 1.96% and 1.62% respectively at the time of writing.
The banking index advanced 2.4%, with stocks in Barclays and Lloyds Banking Group rising 1.32% and 1.08% respectively at the time of writing.
The UK central bank earlier today announced an emergency cut to interest rates in an attempt to buffer the economy from the fast-spreading coronavirus.
The Bank of England cut its main interest rate from 0.75% to 0.25%. The central bank also announced a new term-funding scheme to support small and medium-sized businesses.
The FTSE 100 was ending in negative territory for the last four days due to concerns about the rapid spread of coronavirus and a rout in crude markets.
The UK PM is scheduled to unveil his first budget at 1230 GMT on Wednesday.
London’s main index is down more than 20% from its January peak as the coronavirus outbreak takes a huge toll on the travel industry and hurt business operations.
The FTSE 250 midcap index added 0.39% at the time of writing.
On the data front, U.K. Industrial Production (MoM) for January released earlier today came in at -0.1%. The Industrial Production was below the consensus estimates of a rise of 0.3%.
In addition, the U.K. GDP for January was released on Wednesday. The MoM rate of change in the GDP was +0.0%. The GDP change was below the consensus estimates of 0.2%.
On the technical front, the RSI is currently at 29.38% and suggests that the market can move in the downward direction. The current price is below the MA5. The %K has crossed the %D from below to the upside at around 10% and suggests that the market can move in the upward direction.
Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion- Limit Sell at 5970. Take Profit at 5890. Stop Loss at 6010