Stock prices in London are seen opening flat ahead of the UK construction PMI reading for August, with investor focusing on the future plans of the Bank of England. In the economic calendar today, UK inflation report hearings start at 1315 BST before the Treasury Select Committee, following the central bank's interest rate hike last month. The UK PMI reading for August is expected to come in at 54.9, down from the 55.8 score in July. Moreover, Bank of England Governor Mark Carney is set to speak and is expected to talk about his future within the BOE after Brexit.
The UK 100 index has been moving within the 50- and 200-day simple moving averages since August 15. The technical indicators are suggesting further continuation of the neutral market as the RSI is largely moving sideways in the daily timeframe. If the price has another significant leg lower, closing below the 7420 key level, this could push the index towards the 7320 next support level. The next key support to watch further below is 7200, identified by the April 16 low.
Support: 7420 7400
Resistance: 7475 7520