ftse gbpusd
FTSE 100 mirroring the Asian indices and is trading 0.28% higher at 7,313.6 after upbeat comments from Larry Kudlow, who said that China and US are close to a trade deal. Stronger than expected GDP data from Germany yesterday support risky assets, while problems on trade negotiations on specifics about the agricultural purchases from China weigh negative on investors sentiment.
On the data front, yesterday the UK Retail Sales (month over month) came in at -0.1% below forecasts of 0.2% in October; the yearly reading came in at 3.1%, also below expectations of 3.7% in October. The Retail Sales ex-Fuel (month over month) came in at -0.3% below forecasts of 0.2% in October.
Later today, US retail sales, trade prices, industrial production and Empire State manufacturing data are due.
UK heads to the general election in December that increases the uncertainty for the short term but might clarify the political situation for 2020.
On the technical analysis side, FTSE seesaws around the 200-day moving average and bulls looking for a convincing close above in order to regain the control. The index formed a death cross pattern on October 10, as the 50-day moving average crossed below the 200-day MA giving a bearish signal for FTSE.
On the upside the FTSE 100 facing first resistance at 7,335 daily top and then at 7,440 the high from September 27th. If FTSE 100 manages to break above that level convincingly could open the way for a move up to 7,580 the August highs.
On the downside, first support stands at 7,292.7 today’s low, while a break below that support level will open the way for a test of 7.285 the 50-day moving average.
European stock indices also trading higher today, Dax 30 is 0.38% higher at 13,230 the CAC 40 in Paris trading 0.70% higher at 5,942, In Milan, the FTSE MIB is 0.60% higher at 23,622.
In Wall Street futures are also trading higher, the Dow Jones futures are 0.32% higher at 27,835, the S&P 500 futures are 0.31% higher at 3,106 while the Nasdaq futures are 0.40% higher at 8,298 signalling a positive start for equities in the other side of the Atlantic.