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FTSE in red, global risk aversion hurts

FXStreet (Mumbai) - The equity markets in London are trading weak today, taking cues from its Asian peers, despite the optimistic outlook of the International Monetary Fund (IMF) on the UK GDP growth.

The Ftse is trading 0.36% lower at 6472.80, with the Auto stocks down by 3.67%. The chemical stocks and the electronic equipment stocks are down by 1.81% and 1.48% respectively. The banking stocks have managed to post marginal gains of 0.05%.

Moreover, Global markets have turned risk averse as investors price-in a possibility of monetary tightening in the US amid weakening global growth prospects. The index is likely to trade with a negative bias as caution prevails ahead of the US Federal Reserve (Fed) minutes.

Ftse technical levels

Ftse has a support of 6446 (low of 3rd Oct, 2014) while the resistance is located at 6532. Prices may test 6528 (low of 8th Aug) if the index takes out 6532 levels.

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