FTSE attempts to catch up peers

11:18 AM 11 September 2019


  • UK100 gains almost 1%

  • Price back near key resistance

  • Boris to consider NI only backstop?


The FTSE 100 is trading higher by almost 1% this morning as the leading UK stock benchmark attempts to catch up with its peers across the Channel and the Atlantic. The index has failed to join in the broad based rally seen across European and US stock markets, with the recovery in the pound on the diminishing prospects of a no-deal Brexit weighing on the significant component of benchmark that generates it revenue in non-sterling terms. However, with the pound now stabilising and the chances of any major market moving news on the Brexit front receding a little for the foreseeable future the index may now look to join in the global rally.


The 7360 level has capped attempted rallies for the FTSE in recent trade but a clean push up through this ceiling would pave the way for a breakout rally with the next swing resistance seen around 7470. Price is also back at the 50 SMA as shown by the yellow line above. Source: xStation     


Boris considering a NI only backstop?

With parliament now suspended and the government's strategy of forcing EU concessions on the withdrawal agreement with the threat of a no-deal seemingly rendered ineffective, the attention now turns to any possible shifts in the PM’s position. One suggestion that is gaining some traction is the possibility of a NI-only backstop that would in effect see a border created in the Irish sea. Theresa May was reluctant to consider this possibility due to the DUP’s opposition and the fact that she relied upon their support to prop up her government, but due to the government recently losing their majority her successor is reliant on this. Brussels would likely be willing to accept this proposal, but whether it could pass through parliament is another thing with the ERG’s position not abundantly clear.     


The content of this report has been created by X-Trade Brokers Dom Maklerski S.A., with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. X-Trade Brokers Dom Maklerski S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.