FTSE 100 INDEX NEWS AND PRICE TECHNICAL ANALYSIS – 02 MARCH 2023
02 Mar 2023
Stocks fall amid the flood of gains; Eurozone inflation in focus
The FTSE 100 was down 0.2% at 7,901.94.
Preliminary data released earlier by Eurostat showed that Eurozone inflation eased less than expected in February.
Headline inflation in the bloc ticked down to 8.5% year-over-year in February from 8.6% in January. This was above consensus expectations for a decline to 8.2%.
Food, alcohol & tobacco inflation rose to 15% from 14.1%, while energy inflation declined to 13.7% from 18.9%.
Meanwhile, the core rate of inflation – which excludes energy, food, alcohol and tobacco – rose to a record 5.6% in February from 5.3% the month before, coming in above expectations for it to be unchanged.
Separate figures from Eurostat showed that headline Eurozone unemployment was unchanged at an upwardly revised 6.7% in January, in line with consensus expectations.
Jack Allen-Reynolds, the deputy chief Eurozone economist at Capital Economics, said: “February’s increase in core inflation will reinforce ECB policymakers’ conviction that significant rate increases are needed.
“For some time, we have been forecasting a 50 basis points hike at the meeting in two weeks’ time and another in May, but further hikes at later meetings now look increasingly likely.”
In equity markets, insurer Beazley slumped after it reported a drop in full-year profit as it took a hit from investment losses.
GSK spinoff Halen lost ground as it said full-year adjusted operating profit rose 13.8% and that it expects organic revenue growth of 4% to 6% for 2023, and for the adjusted operating margin to be “broadly “flat”.
Flutter fell even as it reported strengthened revenues, boosted by acquisitions and a strong performance in the US.
FTSE 100 TECHNICAL ANALYSIS DAILY CHART:
FTSE 100 is currently trading in the down channel.
FTSE 100 is currently trading below 20&50 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting a downtrend.
FTSE 100 immediate resistance is at 7940.7 & its immediate support level is 7872.8
HOW TO TRADE FTSE 100 IN THIS WEEK
FTSE 100 is trading in a down Channel; now it is at the support zone, if the support zone is broken, we can see a downside. If it holds above the support level, we can see the upside.