Another session of indecision from the FTSE as the index struggles to overcome the major resistance level. A small bearish channel has formed which could potentially form a bullish flag. The signals remain difficult to interpret for now. We continue to maintain a balance of longs and shorts.
U.K. stocks ended a choppy session marginally higher on Monday, with traders opting to err on the side of caution ahead of a busy week of economic data and earnings. The FTSE 100 index rose 0.02% to close at 7,524.45, leaving it within touching distance of its record close of 7,556.24 hit earlier in October. On Wednesday U.K. growth data for the third quarter come out, while all eyes will be on the European Central Bank on Thursday where the policy makers are expected to lay out a timetable for tapering monthly asset purchases. Meanwhile, Bank of England Deputy Gov. Jon Cunliffe once again against struck a cautious tone about a possible rate increase in November. Rates may have to increase but it’s an “open question” on the timing of such as move, Cunliffe told the Western Mail newspaper in Wales in an interview published Monday. The pound traded at $1.3198, up from $1.3188 late Friday in New York. GKN PLC gained 5.1% following a Sunday Times report the company is considering a split of its aerospace and automotive
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