European Stocks Higher; Eurozone PPI Data Due
European stock markets climbed higher Tuesday, building on the previous session’s positive start to the new quarter.
By 03:45 ET (07:45 GMT), the DAX in Germany traded 1.9% higher, the CAC 40 in France rose 2.3%, and U.K.’s FTSE 100 climbed 1.1%.
European equities have started the new quarter on an upbeat note, bouncing after the sharp losses of the third quarter caused by concerns over slowing growth and aggressive monetary policy tightening.
Helping the tone was the decision of the U.K government to reverse proposed tax cuts for top earners. That said, this only rules out a small percentage of the planned 45 billion pounds of unfunded tax cuts announced last week, and seriously undermines the authority of both the Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng.
Also helping sentiment was Australia’s central bank raising interest rates by a smaller-than-expected 25 basis points earlier Tuesday.
The economic data calendar is largely empty Tuesday, although investors will keep an eye on the August Eurozone PPI for further clues on the inflationary pressures in the region. The index is expected to rise 4.9% on the month and to be up 43.1% on an annual basis.
In corporate news, Greggs (LON:GRG) stock rose 8% after the British fast food chain showed resilience against the backdrop of a worsening cost of living squeeze, with its total sales rising 14.6% over the 13 weeks to Oct. 1 year-on-year.
FTSE 100 Technical Analysis: Daily Chart
In the daily charts, FTSE 100 is trading in down channel. FTSE 100 is currently trading below all SMA.
RSI is in selling zone which indicates bearishness. MACD is currently below zero which indicates bearishness.
Its immediate support is 6963.10 & the resistance level is at 7119.18.
FTSE 100 INDEX will trade in down channel until there is trend reversal.
How to Trade FTSE 100 INDEX this Week:
FTSE 100 INDEX will follow the downtrend until their trend reversal. So, remain bearish on FTSE 100 INDEX.
