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

Jose Ricaurte Jaen Analista independiente

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.

Sterling will probably not hold the gain for long

Author

Jose Ricaurte Jaen

Analista independiente

Born in Colón (Panamá). Over the last years, he has been designing currency algorithms for the retail industry.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold remains below $5,050 despite Fed rate cut bets, uncertain geopolitical tensions

Gold edges lower after registering over 2% gains in the previous session, trading around $5,030 per troy ounce during the Asian hours on Monday. However, the non-interest-bearing Gold could further gain ground following softer January Consumer Price Index figures, which reinforced expectations that the Federal Reserve could cut rates later this year.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.