The FTSE was the outperformer amongst European Indices as it traded higher by 0.20% on Thursday as reports that the EU and UK unanimously agreed on a Brexit draft improved sentiment. However, the UK parliament has yet to approve of the draft that PM Johnson had proposed and reached an agreement on. In terms of data, China revealed its 3rd quarter GDP slowed to 6.0% vs an estimate of 6.1% while industrial production beat expectations and rose by 5.8%. The figures could set the tone for the day and limit upside potential on the FTSE. However, Brexit headlines will bear the strongest influence as market participants await a conclusion to the prolonged uncertainty.
The FTSE managed to trade higher for the first time this week as it gained 14 points to end at 7182. The price held above the support at 7150 and reached a high of 7237, shy of the resistance at 7240. The FTSE has been drifting lower since the start of the week as the higher lows confirm it and suggest that there may be further weakness in store should it fail to breach the 7250 resistance level. Meanwhile, a trade below 7150 would negate the sequence of higher lows formed since early October. Today, look to the 20-period MA around 7200 to determine direction on the FTSE.
Resistance: 7220 /7250