FTSE 100 price is trading 0.1% higher today after recording gains over 0.5% earlier this morning as investors stay focused on the Brexit trade negotiations.
Fundamental analysis: Brexit the focus, consumer spending improves
British equities and the pound are trading in a nervous manner today as the U.K. Prime Minister Boris Johnson is reportedly set to travel to Brussels, possibly tomorrow, to try and reach an agreement with the European Union before Brexit takes place on January 01.
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“Talks are in the same position now as they were on Friday,” a UK government source told the Guardian.
“We have made no tangible progress. It’s clear this must now continue politically. Whilst we do not consider this process to be closed, things are looking very tricky and there’s every chance we are not going to get there.”
Elsewhere, the data and market measurement company Nielsen said supermarket sales in the UK surged by 10.1% during four weeks to November 28 on a yearly basis, reaching a peak of 13% during a week to November 7 as citizens were bracing themselves for another lockdown.
The second nationwide lockdown in England imposed to curb the number of coronavirus infections began on November 5 and ended on December 1.
The measures forced all non-essential shops to shut down, including pubs, cafes and restaurants. As a result, supermarket sales in the country significantly increased during this period.
According to Nielsen’s research, shoppers’ visits to stores were 12% down compared to the year-ago period, but they spent 16% more each time they visited one, on average.
Technical analysis: FTSE trading in a volatile fashion
FTSE 100 price is currently trading at 6525.9 or 0.12% in the green after the bulls have been unable to sustain gains from earlier today. Investors are obviously nervous as they await fresh news concerning the negotiations.
The index closed 0.47% in the red yesterday after hitting the 9-month high at 6602. The previous multi-month high at 6525 is now being tested as the key short-term support line.
The uncertainty surrounding Brexit trade negotiations are the key driver behind today’s nervous trading in FTSE 100.