The FTSE traded 0.76% higher as the latest trade headlines boosts market sentiment. President Trump decided to delay auto tariffs on the EU which provided solace amidst the ongoing trade war with China. In addition, further weakness in the sterling prompted by Brexit concerns aided the lift in the Footsie. Moreover, President Trump reportedly intends to restrict Chinese telecom Huawei from doing business with US companies which could provoke a reaction from China and further escalate tensions between the two nations. Today, direction of the FTSE will rely on news driven sentiment over Sino-US trade relations while sterling weakness should provide support.
The FTSE extended gains on Wednesday and ended at 7296. Should price manage to break through the resistance at 7300, look for a move towards the 50-period MA at 7350 to determine whether the index could further progress. Alternately, failure to move above 7300 would limit further upside moves on the FTSE and suggests a potential move back to the recent low at 7150. Look for a move below 7240 to signal selling pressure and drive the FTSE lower.
Support: 7240/ 7190
Resistance: 7310/ 7350