The FTSE traded 0.28% higher on Thursday as market sentiment was buoyed by news that US-China trade negotiations will continue for a second day. Meanwhile in the UK, PM Johnson’s discussions with his Irish counterpart have been constructive as suggested by reports and raised hopes that a no-deal Brexit would be avoided. Separately on economic data, UK GDP figures came in above expectations while manufacturing and industrial production figures declined below their estimates. Today, markets will look to trade and Brexit developments to influence direction on the FTSE.
The FTSE gained 19 points to end at 7186 on Thursday. The price found support at 7130 however failed to sustain a move above 7180. Until we see price trade above the 7200 level and take out its high at 7223, upside potential on the FTSE will remain limited. Meanwhile, a sustained move below 7150 would indicate selling pressure while a break below 7130 would target the lower levels of support at 7080,7040 and 7000.
Resistance: 7200 /7240