The FTSE 100 Stumbles | Will It Continue To Fall?

The FTSE 100 ended the day on a bad note. While the index had been off to a good start to this week yesterday, concerns arose as the final piece of the Brexit started to come together. Today, we’ll talk about what happened surrounding the Brexit, what the news has to do with the FTSE 100, and what binary options traders should be watching for ahead.

What Happened With The Brexit Today

As mentioned above, the FTSE 100 ended the day on a low note, and the declines can largely be attributed to the Brexit. So, what’s going on with the Brexit? Well, the final piece of the movement before the Brexit can actually take place has been completed today.

Earlier today, the British Parliament made the decision to pass an incredibly important bill. In fact, it is the bill that gives Prime Minister Theresa May everything she needs in order to start talks with regard to leaving the EU. Now that the bill is passed, the Queen will sign it into law. This will allow Theresa May to enact Article 50, pushing the Brexit into full swing.

Because of the vote, May will be able to push the Brexit into full swing tomorrow. However, that is not what experts are expecting to see. In fact, experts say that because the Dutch elections will be held on Wednesday, it will likely be best for May to wait until the end of the month. However, no one quite knows if that will be the case.

Why This Is Causing The FTSE 100 To Fall

At first glance, it may seem hard to make the connection between the Brexit and the FTSE 100. However, the truth is that the two topics are very much correlated. At the end of the day, the FTSE 100 is the benchmark stock market index of Britain. As a result, anything that effects the British economy will likely have an effect on the FTSE 100 as well.

Considering that the Brexit signals a break of economic ties between the UK and the EU, there are economic concerns that come along with the notion. These economic concerns ultimately turn into investor concerns, and that’s exactly why the FTSE 100 is falling.

However, the truth is that it’s not only the relationship with the EU that’s at stake here. In fact, it goes deeper than that. Scotland may be pushing for an independence vote incredibly soon following this decision. This would end the 310 year tie between Scotland and Great Britain, another possible thorn in the side of the UK economy; causing even more concerns surrounding the FTSE 100.

What Binary Options Traders Should Be Watching For Ahead

Moving forward, there’s likely to be several opportunities surrounding the FTSE 100. However, to take advantage of these opportunities, you’ll need to keep your eye on the news. In particular, make sure to watch Brexit news incredibly closely. With all that is going on and a world of uncertainty at the moment, any news with regard to the Brexit will likely lead to movement in the FTSE 100. Also, keep in mind that the Brexit isn’t the only factor that will drive movement in the FTSE 100 ahead. Continue watching the USD, commodities, and other economic news, as any developments in these areas will likely lead to movement in the index ahead.

What Do You think?

Where do you think the FTSE 100 is headed moving forward? Join the discussion in the comments below!

Joshua Rodriguez

Joshua Rodriguez is the founder of CNA Finance. His writing has been featured on Investing.com, Yahoo Finance, Talk Markets, USNews & World Report, and more. To connect with Joshua, reach out to him on Google+! Google+

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