UK and Italian Politics in Focus for FTSE 100 and MIB | Webinar
Equity Analysis and News
- Italian risk premium on the rise
- Tory press conference takes center stage for UK assets
Italian politics likely to be the key driver for the FTSE MIB next week with markets looking for a response from the EU regarding Italy’s budget proposal to have a deficit target at 2.4%/GDP, which is far beyond preferred target of the European commission. As BTP-Bund spreads widen to YTD highs, Italian banks are likely to be the most affected stocks in the FTSE MIB, consequently keeping the index pressured for the week ahead.
FTSE MIB Price Chart: Daily Time Frame (January-September 2018)
Domestic politics takes focus with the Conservative Party Conference (Sunday-Wednesday). Following the unsuccessful Brexit meeting in Salzburg, Brexit optimism has subsequently faded. As such, market participants will be placing a keen eye on the party conference, however, judging by the past two party conference’s, GBP may find itself on the backfoot (Fallen an average 1% post-conference), which in turn could see the FTSE 100 find some support in the coming week. A break and close above 7535 increases scope for a move towards 7650.
FTSE 100 Price Chart: Daily Time Frame (December 2017-September 2018)
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--- 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.