FTSE 100 Gains On Stimulus Hope

Summary:
• On the technical side FTSE 100 rebounds from four month lows registering third positive sessions out of four, as the short term outlook has turned neutral.

FTSE 100 is trading 1.15% higher at 7,207 making for third session an attempt to close above the 200 day moving average. Earlier the United Kingdom Public Sector Net Borrowing came in at £-1.971B, topping expectations of £-2.65B in July. GBPUSD is under pressure today giving up 0.34% at 1.2127. Wall Street and Asian indices ended lower as investors await the Fed Minutes later today.

FTSE 100 getting a boost from TUI AG +3.44%, Burberry Group plc +3.37% Hargreaves Lansdown plc +2.91%. On the other hand Phoenix Group is –0.99% and BHP Group is -0.73% lower.

On the technical side FTSE 100 rebounds from four month lows registering third positive sessions out of four, as the short term outlook has turned neutral.  On the downside immediate support stands at 7,122 today’s low, while a break below will open the way for a test of 7,060 low from August 16^th. Long positions will face resistance at 7,380 the 100 day moving average while more offers will emerge at 7,418 the 50 day moving average.

European indices also trading higher, with DAX 30 adding 1.05% to 11,773 while the CAC 40 in Paris trading 1.45% higher at 5,421.

In Wall Street, the Dow Jones futures trading 0.60% higher at 26,087, the S&P 500 futures are 0.69% higher at 2,918 while the Nasdaq futures are 0.81% higher at 7,730 signaling a positive start for equities in the other side of the Atlantic.