FTSE 100 finds resistance at 6,700
The FTSE 100, the United Kingdom’s major index (EWU), has been on rising trend after the sharp fall for two days following the Brexit referendum. For more details on the upward movement of the FTSE 1o0, read Theresa May and Shinzo Abe in Focus as FTSE 100 and Nikkei 225 Soar. The FTSE 100 found heavy resistance at 6,700 levels on July 12—even when other major European indexes extended the rally. Flat trading in the FTSE could be due to the Bank of England’s meeting on July 14. Markets expect a rate cut and more monetary easing. However, uncertainties still persist. Investors are expected to wait for the Bank of England’s meeting before making major adjustments to their FTSE 100–based portfolios.
European indexes are trading higher
European indexes were trading higher on July 12, 2016. The German DAX and the French CAC 40 rose by 1.3% and 1.6%, respectively. Looking at Europe-related ETFs, the Deutsche X-trackers MSCI EAFE Hedged Equity ETF (DBEF) and the Vanguard FTSE Developed Markets ETF (VEA) rose by 1.3% and 1.4%, respectively.
Asian indexes are broadly positive
Critical Asian indexes (AAXJ) were trading with a positive bias on July 12, 2016. The Japanese index Nikkei 225 extended its bull run as Prime Minister Shinzo Abe indicated more monetary and fiscal stimulus. The Nikkei rose by 2.5% for the day. For more details on Shinzo Abe’s election win and subsequent announcement, read Theresa May and Shinzo Abe in Focus as FTSE 100 and Nikkei 225 Soar.
Oceania indexes were trading on a flat note. The Australian S&P/ASX 200 and the Dow Jones New Zealand Index rose 0.30% and 0.22%, respectively.