FTSE Closes Flat Following Brexit Extension

The FTSE, lagging behind its European counterparts, closed on the flatline as gains in airlines and house builders were battling against loses in the heavyweight mining sector.

The UK avoiding a no deal Brexit after being granted a six-month extension to Article 50, has boosted the Brexit sensitive stocks on the index. 

Airlines and house builders, the sectors which have been negatively impacted by fears of a no deal Brexit, climbed higher. 

House builders were also boosted by data showing that house prices improved in March for the first time since July last year. With the prospects of a no deal Brexit kicked 6 months down the road the likes of Persimmon and Berkley Group were moving higher.

The pound was largely unmoved by the prospect of a 6-month extension to Brexit. Trading steadily versus the dollar, pound traders have become numb to the unfolding drama in Brussels and Westminster. Whilst a 6-month delay, takes the UK back from the brink of a chaotic no deal, it certainly doesn’t resolve the situation. 

After rebounding from below 6600 at the turn of the year, the FTSE continues its ascent. Whilst the avoidance of a no deal Brexit is lifting the UK index, continued uncertainty could weigh on sentiment. This means that the FTSE could struggle to push through resistance at 7500 or 7560. On this downside near term support can be seen at 7376, before 7330.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

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.

For further details see our full non-independent research disclaimer and quarterly summary.