FTSE 100 surges upward, but the PMI indicates that UK manufacturing ended 2022 on a shaky basis
FTSE makes a strong start to 2023
FTSE 100 storms ahead, up 161 points Trading in London has got off to a bright and breezy start in the first session of 2023 with the FTSE 100 posting gains of over 1% reflecting advances in European markets yesterday when UK equity markets were closed.
The advances came despite a report in the Financial Times which predicted the UK will experience one of the worst recessions and poorest recoveries among the G7 countries in the upcoming year.
At 8.15 am the lead index was 92 points to the good at 7,544 while the more domestically focused FTSE 250 soared 224 points to 19,077.
“In the UK, the premier index opened the year on the front foot in early exchanges, driven by mark-ups across various sectors, such as oils and banks.”
“In addition, the possibility of increased Asian travel also boosted the likes of International Consolidated Airlines and Rolls-Royce, while the initial risk-on approach came at the slight expense of the more defensive sectors” commented Richard Hunter, head of markets at interactive investor.
Rolls-Royce Holdings PLC was also supported by an upgrade by Jefferies to buy with the share price up 4%.
But the New Year cheer was not extended to ailing cinema chain, Cineworld Holdings PLC, which warned of a “very significant dilution” to existing shareholders as it continued to explore its options to exit Chapter 11 bankruptcy.
It also said there had been no talks with AMC Entertainment Holdings (NYSE: AMC) Inc and shares slumped 9% in reaction.
FTSE TECHNICAL ANALYSIS
FTSE 100 is currently trading in the up channel.
FTSE 100 is currently trading above all SMA
RSI is in buying zone which suggests bullishness and Stochastic suggesting an up trend.
FTSE 100 immediate resistance is at 7631.6 & its immediate support level is 7459.4
HOW TO TRADE FTSE 100 IN THIS WEEK
FTSE 100 is trading in an up channel; it will continue to trade upside any trend reversal so, remain bullish on it.