FTSE falls 1.6% lower to 6701.59
- Britain's blue-chip index, the FTSE 100, fell on Tuesday due to ongoing concerns for a slowing global economy as well as an oversupply of oil.
- The index ended the day 1.6 percent lower to 6701.59.
Investors are living up for the outcome of the Fed and BoE later this week, anxious in thinner holiday markets where the policymakers need to tread carefully with their communications. Brexit is an ongoing theme as the government prepares to head into a recess this Friday for the holiday period. However, there are still plenty of risks out there, one of which is a potential leadership challenge by the Labour party. Reports today came with a UK May spokesperson saying that the PM's Cabinet agreed to set in motion the remaining elements of the no deal preparations.
- UK PM May's spokesman: Citizens should prepare for no deal Brexit
- "Government will recommend business now enact there no deal plans as a judge necessary; Citizens should also prepare for no deal Brexit;
- Leaving with a deal remains mostly likely scenario;
- There are a number of pieces of legislation would need to pass through parliament to be ready for no deal.
Best and worst
As for as individual stocks went, Randgold Resources Ltd was the best performer trading last at 6,886.00, adding +212.00 points or 3.18%. Standard Life Aberdeen Plc last traded at 247.05, adding +6.15 points or 2.55% while the worst performers were National Grid Plc closed at 758.70, losing -76.60 points or -9.17% and NMC Health Plc ended at 2,804.00, down -106.00 points or losing -3.64%. Meanwhile, commodities remain a focus and have also been a weight on the index, with declines in base and precious metals and oil hurting the likes of BHP Billiton and Glencore and Royal Dutch Shell.
- Support levels: 6680 6607 6520
- Resistance levels: 6840 6927 7000
The index was extending a series of lower lows on Monday and again on Tuesday to make for four sessions of consecutive negative closes which now brings the index to the 50% fibo of the 2015-2018 range. RSI is on the verge of oversold territory on the daily time frame but there is still plenty of room to go until the price can be considered to be oversold when using prior lows of 20 on the reading. Bears can target a break of the 50% fibo at 6697, (The Dec 2016 lows at 6680) and head to S2 located down at 6607 ahead of 6414 as the 61.8% fibo.