DAILY TRADING STRATEGY

Thursday, Dec 21

UK OVERVIEW

U.K. stocks ended lower on Wednesday after the International Monetary Fund downgraded its forecast for Britain’s growth, saying last year’s decision to leave the European Union is slowing the economy. London-listed shares were also lower alongside other global markets, which were unable to gain much traction after U.S. lawmakers neared completion of an overhaul of the country’s tax code. The FTSE 100 index fell 0.3% to close at 7,525.22, its lowest close since Friday. The British pound bought $1.3408, up from $1.3385 late Tuesday in New York. The International Monetary Fund downgraded its forecast for 2017 U.K. growth to 1.6% from 1.7% and said it expects growth to slow to 1.5% in 2018. The fund said last year’s decision to leave the European Union was slowing down growth, warning that a “breakdown in discussions could lead to a disorderly exit from the EU and sharp falls in asset prices.” “The U.K. economy is already losing out as a result of this decision,” said IMF Managing Director Christine Lagarde at a press conference, according to media reports. “That narrative we identified as a potential risk in May 2016 is actually being rolled out as we speak. 


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