FTSE is trading lower as we kick off trading this Thursday. As of 10:15 am GMT, the index is down roughly 23 points or 0.29% at 7,234.4.
The index was dragged by headlines that has been dominating equities and forex news. A report came out yesterday that says China and the US may not be able to finalize any deal this year. Chinese negotiators have been pushing for higher tariff rollbacks but the Americans are adamant to give it to them.
Risk aversion brought about by concerns about the world’s largest economies not coming into terms with each other weighed down the index despite a strong performance by some British stocks. British American Tobacco gained 5% when The Capital Group of Companies announced an increase in its stake in the company despite widespread concerns about vaping. Meanwhile, Centrica was up 4.4% when it said that the company is on trade to hit earnings targets.
The index is currently trading lower as it takes its cue from equity indices in Asia. Support at 7,240.0 where it made lows on October 31 and November 15 has been broken. Sellers will be looking at FTSE’s October 18 lows at 7,135.2 as the next support level. Conversely, if risk appetite picks up today, the index could trade to its 7,336.4 where it previously established highs on October 25, October 28, and October 31.Download our latest quarterly market outlook for our longer-term trade ideas.