Search ForexCrunch
  • UK shares were sideways on Tuesday, with the FTSE 100 index ending higher by just 4 points at 7,133.14 following an initial bid in the index that failed below prior highs in the month.
  • Sterling ended higher by 0.2% vs the greenback at 1.2881 although was down 0.2% versus the euro at 0.8788.  

Investors were tuning into Theresa May’s statement to parliament as well as the governor of the Bank of England, Mark Carney’s comments in London, talking about the global economy and risks to the outlook, including trade tensions. Prime Minister May said she intended to keep up Brexit negotiations with Brussels over possible changes to the Irish border backstop, calling for the opposition party to ‘hold their nerve’ following Jeremy Corbyn’s accusation that PM May had just offered “more excuses and more delays”. Carney’s comments were mirroring much of how the headlines have portrayed the global economic backdrop as he showed his concerns over China’s economic performance, trade wars and a global slowdown facing the UK as it seeks to leave the EU.

There was a boost in sentiment during the session centred around prospects of a trade agreement between the US and China before the proposed deadline where tariffs would be increased in Chinese imports. White House Counselor Kellyanne Conway was reported saying that President Trump will meet with Chinese President Xi Jinping “very soon”. At the same time, there was news that Republicans and Democrats reached an agreement over border security that will avert another partial government shutdown.  

Best and wost performers

Meanwhile, as for the performance of corporates in the index, NMC Health (NMC) 2,700.00p 1.89% came out on top followed by  Kingfisher (KGF) 232.00p 1.71% and DCC (DCC) 6,620.00p 1.69% while the worst three of the top flight index were TUI AG Reg Shs (DI) (TUI) 886.80p -7.45%,  Sainsbury (J) (SBRY) 285.30p -2.93% and Barratt Developments (BDEV) 561.20p -2.26%.  

FTSE levels

The index remains in a bullish trend, albeit capped at the 50% Fibo of the May 2018 decline and supported around the 23.6% Fibo of the 28th Jan to recent Feb highs and the confluence of the 38.2% Fibo of the May 2018 decline to Dec lows around 7033 and 7058 respectively. However, while below the daily doji and fractal highs of 7187, the technical picture leans bearish at this juncture. A break below 7050 opens risk back to the 50% Fibo of trend low to recent highs located at 6860. This is where the index could find support due to the confluence of the fractal low on 26th Oct 2018. On the upside, bulls can target the 50% Fibo of the May 2018 decline with the confluence of the 7220 psychological level.