UK Parliament went into overdrive last evening in search of a Brexit ‘Plan B’. Seven amendments A-O-G-B-J-I-N were voted on. Government won all except one, the Spelman amendment, a non-binding no-deal amendment.
What now? Will the PM achieve further progress on her Brexit Withdrawal Agreement? The market is hoping so. While Pound Sterling dipped last evening after the vote, it was still substantially higher than its December lows. For example, GBPUSD‘s correction from its recent highs at 1.320 pauses – for now – at the 1.300 key level.
For the FTSE 100 Index, it is still developing a minor base. The 500-point rally from 6,500 has lost steam. But the recent upward dynamic may rejuvenate the index. A retest of the 7,000 round number resistance is possible.
Sectorwise, I find the upward breakout in Rio Tinto to be interesting. The stock has been loitering beneath the important psychological level at £40 until yesterday, which saw a firm break of this ceiling. The next resistance is at £43. Anglo American had a similar lateral breakout recently.
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Jackson has over 15 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.