The FTSE 100 index is little changed today as investors continue focusing on Brexit and the upcoming earnings season. The blue-chip UK index is trading at £6,000, which is 0.20% below its Friday’s close.
The main focus among investors in the UK is about Brexit. This week, talks between the UK and the European Union are entering the final stages and investors are relatively optimistic about a deal. The two sides need to have a deal or an agreement by Thursday this week.
Still, even if they don’t make a deal, there is a possibility that the sides will continue holding talks until the main deadline on December 31st. The FTSE 100 index is also moving in anticipation of corporate results from the United States.
The biggest news event moving the FTSE 100 is the unexpected resignation of British Airways CEO, Alex Cruz. He will be replaced by IAG’s Chairman, Luis Gallego, who will take over until a permanent replacement is found.
The resignation comes at a time when the aviation industry is going through a rough patch. According to CNBC, more than 40 airlines have gone out of business this year and many others are currently on life support. As the Covid-19 pandemic continues spreading, there is a possibility that the situation will get worse. IAG share price is down by 0.25%.
Rolls Royce is the best-performing stock in the FTSE 100 today. It has jumped by more than 5%, meaning that it has almost doubled in the past week. Other top gainers in the index are Evraz, Fresnillo, Hargreaves Lansdown, and BT Group. On the other hand, the worst-performers in the FTSE are AVEVA Group, Next PLC, BP, and Royal Dutch Shell.
The two-hour chart shows that the FTSE 100 index broke-out above the important resistance level of £5,980 on October 8. It then climbed and reached a high of £6,045 on October 9. The uptrend is also being supported by the short and medium-term moving averages.
Therefore, for the immediate near term, I suspect that the FTSE 100 index will continue rising as bulls attempt to move above the next resistance at £6045. On the flip side, a move below the previous support at £5980 will invalidate this trend.
