FTSE: Can Support at 7383 Hold Amid Pound Strength and Trade Tensions?
Fiona Cincotta November 28, 2019 11:03 AM
The FTSE has kicked off trading on the back foot weighed down by the election boosted pound and trade concerns
The FTSE has kicked off trading on the back foot weighed down by the election boosted pound and trade concerns, which are overshadowing a jump in domestically focused stocks.
Trade headlines are driving risk off sentiment. President Trump quietly signing the Hong Kong bill into law isn’t going unnoticed and investors are waiting to see the extent of the impact that his actions have on the fragile US – China relationship. Whilst risk appetite has taken a hit, the timing has been crucial with US stock markets closed for Thanksgiving.
Levels to watch
FTSE is down 0.3% in early trade. The index remains above its 200, 100 and 50 ma. Support can be seen at 7384, the low from the previous session. A breakthrough here could see the FTSE drop towards 7338. On the upside, a move above 7447 could indicate a more bullish outlook for the index.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.