FTSE 100 Analysis: Russian Sanctions and Large Cap Ex-Divs Drag on FTSE
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FTSE 100 Analysis and News
- Ex-Dividends from several heavyweight’s trim 39 points off the FTSE
- Russian sanctions and soft earnings weigh on sentiment.
See our Q3 forecasts to learn what will drive FX the through the quarter.
FTSE 100 Drops as Heavyweights go Ex-Div
FTSE 100 is trading with losses of 0.6% this morning, shedding 48 points, with 39 points attributed to the plethora of large caps going ex-div. This includes, AstraZeneca, Barclays, BP, BT Group, Diageo, Direct Line, Fresnillo, GlaxoSmithKline, Informa, Royal Dutch Shell, Rio Tinto, Rentokil and Standard Chartered who will trade without entitlement to their latest dividend pay-out.
Russian Sanctions Spook Markets
Sentiment has also been dampened in the wake of the latest round of US sanctions on commodities giant Russia, in response to Russia using a nerve agent against former Russian spy Skripal. This in turn has weighed on major oil and mining stocks with BP and Shell among the biggest drags on the FTSE 100. Alongside this, earnings have also provided notable price fluctuations with TUI shares plunging over 9% after its quarterly results disappointed market participants.
FTSE 100 Sector Performance
FTSE 100 Price Chart: Daily Time Frame (July-August 2018)
On the hourly timeframe, the FTSE 100 appears somewhat exhausted above 7750, having valued to make a push towards the 7800 level. Consequently, eyes are on the 7706 support level, in which a break will likely see losses exacerbated as the price falls towards the 7650-7700 value area.
KEY TRADING RESOURCES:
- Just getting started? See our beginners’ guide for FX traders
- Having trouble with your strategy? Here’s the #1 mistake that traders make
- See our Q3 forecasts to learn what will drive FX the through the quarter.
--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.