FTSE 100 digests May's plans; IBEX 35, CAC 40, DAX all down


Another speech, one less risk event in 2017. PM May's speech was worth cheering as she shared a brave and brighter future for the UK; where is the catch? It seems companies missed their usual doses in the form of future spending or the anticipated "partial membership" in the EU as European equities, especially the FTSE 100, traded on the losing side of the markets. 

Today's trading session has been a red tape for European indexes as the FTSE 100 trading at 7220.38, down -1.46% on the day, having posted a daily high at 7329.27 and low at 722038. Later the IBEX 35 trading at 9394.90, marginally down -0.16% having posted a daily high at 9429.00 and low at 9361.90, then the DAX trading at 11540.00, marginally down -0.13% having posted a daily high at 11583.43 and low at 11425.14, and finally the CAC 40 trading at 4859.69, down -0.46% on the day, having posted a daily high at 4889.16 and low at 4841.68.

Good Bye! Single Market

Lee Hardman, Analyst at MUFG, notes on today's speech, "Further reassurance has been provided by the government’s signal that it wants a transitional phase which would help to limit any initial Brexit disruption. Overall, the government has put forward an ambitious Brexit plan while acknowledging that negotiations with the EU will involve compromises. It remains to be seen how much of their plan that the UK government will be able to achieve. We remain hopeful that the UK and EU will both find it in their best interests to maintain favourable terms of trade and seek to dampen any disruption."

"In light of the update on the UK government’s Brexit plans, we have decided to leave our outlook for the pound unchanged for the year ahead. The plans were broadly in line with our expectations and have failed to trigger another adjustment lower for the pound. “Hard“ Brexit concerns may have just peaked in the near-term. We continue to believe that the bulk of the adjustment lower for the pound in response to Brexit concerns has already taken place which leaves the pound undervalued."

Elliott Wave Analysis: German Dax Intraday View

FTSE 100 Levels to consider

In terms of technical levels, upside barriers to consider in the FTSE 100 are up at the following resistances (daily chart): 7352, later 7578, and finally 7809. While support levels are aligned at 7122, then 6896 and below that 6660.

ftse100

Sterling will probably not hold the gain for long

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