UK’s FTSE 100 rises as energy companies and retailers provide support
UK’s FTSE 100 rose for the third straight session on Wednesday following gains in shares of energy firms and retailers, while a decline in the pound also helped the export-oriented index.
The blue-chip FTSE 100 rose 0.5%, while the mid-cap FTSE 250added 0.7%.
Sportswear firm JD Sports Fashion jumped 6.9% after its U.S. peer Nike Inc (NYSE: NKE) Reported better-than-expected results on Tuesday. Retailers added 1.9%.
“What we are seeing in the U.S. and in Europe is that consumers are not yet backing down, though probably a recession is expected and inflation is still high,” said Roberto Rossignol, portfolio manager at Money farm.
Sterling slipped against the dollar and euro as British public borrowing hit a November record, underscoring the challenges for the UK economy.
“As the UK economy heads towards a recession, the public purse could suffer a slowdown in tax revenue as businesses and consumers decelerate, which could result in higher public sector borrowing,” said Victoria Scholar, head of investment at interactive investor.
Energy stocks were also among top gainers, adding 1% as heavyweights Shell and BP Gained.
As traders enter the last few sessions of 2022, the FTSE 100 has fared better than its peers year-to-date. The region-wide Eurozone Stoxx 600 and the S&P 500 are down 13% and 20%, respectively, however UK’s blue-chip index is set for losses of 0.1%.
Among stocks, Directo Plus rose as much as 6.7% after the graphene-based product maker signed an exclusive agreement with Pigment solution, a European distributor of speciality chemicals and ingredients.
FTSE 100 TECHNICAL ANALYSIS
DAILY CHART:
FTSE 100 is currently trading in up channel.
FTSE 100 is currently trading above 5&50 SMA
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
FTSE 100 immediate resistance is at 7408.3 & its immediate support level is 7372.4
HOW TO TRADE FTSE 100 INDEX IN THIS WEEK
FTSE 100 is moving in up channel; it will continue to trade upside, so remain bullish on it.
