- Summary:
- FTSE 100 trades 0.4% today following the initial approval that PM Johnson received yesterday from the House of Commons on his Brexit plan.
FTSE 100 has been enjoying a fine morning in Europe’s session as it trades 0.4% higher on the day. It seems that investors have found positives in the fact that for the first time majority of House of Commons’ members agreed to support PM Johnson’s Brexit deal.
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[vc_single_image image=”17293″ img_size=”medium” alignment=”center” style=”vc_box_rounded” onclick=”custom_link” img_link_target=”_blank” link=”https://news.investingcube.com/q4-global-market-outlook-eurusd-gold-crude-oil-bitcoin-sp-500/” title=”FTSE 100 hourly chart”]Although the Parliament didn’t ultimately support the proposed timetable from Johnson, which effectively meant that Brexit won’t happen by the end of this month, investors welcomed the results of the first vote when MPs approved Johnson’s Withdrawal Agreement Bill in the second reading (329 votes to 299).
“Most believe Brussels could go for another so-called ‘flextension’. The latest reports suggest this could set a new Brexit date in January or February 2020, but crucially allow that deadline to be brought forward if a deal is ratified by the UK Parliament”, ING’s analyst said.
Technically, the price has broken above the mini-trend line resistance at 7228.0, as well as above the 200 MA on an hourly chart. The next important resistance is the 200 DMA, currently at 7269.1, while the descending trend line, which connects lower highs, is located around the 7315.0 mark.
On the downside, the mini-trend line is expected to provide the support for today. The ultimate support for the bulls remains 7020.