FTSE closed in positive territory on Wednesday, higher by 73.25 points
- The FTSE 100 Index has closed in positive territory on Wednesday, higher by 73.25 points, +1.08% as investor optimism over trade talks and Brexit improves.
European markets as a whole have gained on Wednesday, whereby U.S. and China relations seem to be back on track with U.S. President Donald Trump saying he’s on the cusp of intervening in a growing crisis over the Huawei executive if it can help keep a trade deal on track, according to an interview Reuters.
No confidence in the spotlight
Meanwhile, in the U.K., PM Theresa May faces a vote of no-confidence. Voting is expected to take place between 1800 GMT and 2000 GMT, after the required 48 letters calling for a contest were delivered. If May loses the vote, there will be a Conservative leadership contest in which she cannot stand. If she wins, however, her leadership cannot be challenged for at least another year. She will require the backing of more than 50% of Conservative MPs to survive. However, in contrast to much of the negative speculation, she only needs the support of a simple majority of her MPs to avoid a leadership contest and a number of influential potential opponents have already come out publicly in support of the Prime Minister. Reuters reported that 185 of 317 eligible MPs have come out in public support of the Prime Minister and UK markets have been lifted on positive implications for the Brexit saga. If May wins the vote, no challenge can be mounted for another year.
Best and worst
As for the best performers, Berkeley Group Holdings last traded at 3,500.00, adding +189.00 points or 5.71%. Ashtead Group Plc last traded at 1,747.50 and added +83.50 points or 5.02%. Barratt Developments Plc last traded at 468.10 and added +20.90 or 4.67%. As for the worst performers, Wood Group (John) Plc traded at 578.60, losing -65.60 points or -10.18%. Sainsbury Plc last traded at 275.00, down by -21.40 points or -7.22%. Next Plc last traded at 4,570, losing 50 points or 1.08%.
Bulls have extended their run in the challenge of a series of down days and now trades above the pivot line of 6809 with a high of 6902 scored on the day. However, bulls face a stubborn level of resistance at the 10-D SMA and attention could quickly flip over to the downside on a failure below S1 located at 6760. The Dec 2016 lows at 6680 are a key downside target. The 2018 range 23.6% level is located at 7100. The 38.2% Fibo of 2018's range at 7262 is the critical objective thereafter.