Clinton Remains Strong Favourite, FTSE 100 Reverses Higher
U.K. stocks jumped on Monday, as investor confidence was fueled by news that the FBI would not bring fresh charges against Hillary Clinton over a batch of newly discovered emails. The news dispelled a cloud over the Democrat candidate’s presidential campaign two days before the U.S. election and triggered dollar buying, which indirectly dampened British Pound price.
The FTSE 100 index lost more than 4.5% last week with every single trading day closing lower partly due to concerns over tightening race between Republican presidential nominee Donald Trump and his Democrat rival Hillary Clinton. Investors’ worries have mounted since the FBI announced on October 28 that it had found new evidence in its investigation of Clinton’s emails.
On the FTSE 100, mining and banking shares were heading the risers as investors piled back into riskier assets. Rising industrial metal prices pushed mining shares up, with Glencore Plc adding 4.12%, BHP Billiton gaining 3.99%. Antofagasta and Rio Tinto plc rose 3.86% and 3.04%, respectively.
However, as haven assets such as gold and silver slipped back, shares of Randgold Resources were down 0.15% and Fresnillo fell 1.54%.
HSBC Holdings plc topped the market and banking stocks following its latest update on third-quarter earnings. HSBC rallied 4.96% after the lender reported underlying profit that beat analysts’ estimates. On the contrary, Tesco dropped 0.77% after its banking service was reported to hit by fraudulent activity.
Fig: FTSE 100 H4 Technical Chart
FTSE 100 created a wide gap up on the market open. The index witnessed a big jump that brought the prices above the 23.6% level at 6742.67. As can be seen from the stochastic chart, the %K line has crossed over the %D line from below, suggesting a reversal into an uptrend. The index is expected to find its resistance at 6920.00.
Buy Stop at 6790.00, take profit at 6920.00, stop loss at 6760.00