FTSE falls as UK heads to the polls

FXStreet (Mumbai) - The London’s Ftse index fell more than 1% on Thursday with investors waiting on the sidelines as the UK citizens head to the polls to vote in one of the tightest elections in the UK history.

Losses across the board

The Ftse dipped to 6850 levels with only seven stocks rising. Heavy losses are seen in the Mining index; down 1.79% and Oil and Gas index; down 1.91%. Bank index has also shed more than 1%.

Among stocks, RSA insurance advanced 1.66%, followed by a 1.13% gain in Easyjet. Meanwhile, the losing side includes Morrison Supermarket; down 7.00%, followed by a 3.94% fall in Admiral.

Threat of a hung parliament

Opinion polls point to the likelihood that the election will result in a hung parliament. The main parties – Conservative and Labor – shall have to negotiate with smaller parties in order to form a coalition government.

The first indications of the election outcome won’t emerge until after polls close at 10 p.m. London time, or 5 p.m. Eastern Time.

FTSE Technical Levels

The immediate support is seen at 6800.0, under which losses could be extended to 6765.05 (Mar. 31 low). On the other hand, a break above 6900.00 could drive the index higher to 6974.26 (Mar. 2 high).

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