The FTSE was the underperformer amongst European Indices as it traded 0.26% lower on Monday while the pound briefly traded higher. The FTSE’s oil majors led the losses on the day as they were weighed down by lower oil prices. Separately on economic data, UK’s 2nd quarter GDP contracted as expected by 0.2% , while the annualized GDP figure came at 1.3% versus an estimate of 1.2%. Today, look to manufacturing data out of the US and Europe to provide insight into the global economy and influence direction on the FTSE. Apart, from the data, Brexit and trade developments will remain key drivers of price action and determinants of market sentiment.
The FTSE lost 18 points to end at 7408 on Monday. The index showed range-bound price movement as price traded above the 7400 level whilst holding below the newly found resistance at 7440. Look to a sustained decline below 7400 to indicate selling pressure and target the lower support at 7350 near the 20-period MA. On the other hand, overcoming the 7440 resistance would be required to target the higher levels at 7465 and 7500.