The Footsie index edged 0.37% higher on Wednesday as progress on US-China trade developments continue to catalyze global equities. In the UK, Parliament voted on a bill that would delay Brexit beyond the April 12th deadline to ensure the UK leaves the EU with a deal. Now, the extension would have to be requested by PM Theresa May and approved by the EU before further steps can be taken. On the data front, UK Services PMI data showed contraction for the first time in over two years and highlights a possible slowdown in the British economy. Today’s construction PMI data should further reflect economic conditions in the UK amidst Brexit uncertainty and Sino-US trade developments will continue to dominate markets’ attention.
The FTSE index maintained bullish momentum and extended gains to end at 11418 on Wednesday. Failure to trade above yesterday’s close would suggest a potential pullback in price. With the RSI reading turning lower and exiting the overbought region, look for price to drift lower towards the support at 11350. A decline below this level would suggest a move towards the support at 7290.
Support: 7350/ 7290
Resistance: 7420/ 7470