FTSE nudges lower as Ocado tumbles
The FTSE 100 was down 0.1% at 7,853.65.
Figures released earlier by the Office for National Statistics showed that regular pay, excluding bonuses, was up 6.4% on an annual basis. Excluding the Covid pandemic, this marks the biggest jump since records began in 2001.
Adjusted for inflation, however, wages were down 2.6%.
The figures also showed that the unemployment rate ticked up to 3.7% in the three months to November, from 3.5% in the previous quarter.
In addition, the number of job vacancies declined by 75,000 in October to December versus the previous three months.
Ashley Webb, UK economist at Capital Economics, said: “Consistent with the economy proving to be more resilient than expected, November’s labor market data show that conditions remain tight and wage growth stayed strong.
“This will only add further weight to the case for the Bank of England to raise interest rates from 3.50% now, perhaps to 4.50% in the coming months.”
Also weighing on the mood was the release of data showing that China’s economy slowed in 2022 to one of its worst levels in nearly 50 years.
In equity markets, Ocado (LON: OCDO) Was the worst performer on the FTSE 100 after it said that fourth-quarter sales at Ocado Retail – its 50:50 joint venture with Marks & Spencer – were more or less flat as customers shopped less and bought fewer items.
Retail revenues nudged up just 0.3% versus the same quarter a year earlier, coming in below the company’s guidance for mid-single digit sales growth.
FTSE 100 TECHNICAL ANALYSIS
FTSE 100 is currently trading in up channel.
FTSE 100 is currently trading above all SMA
RSI is in buying zone which suggests bullishness and Stochastic is suggesting down trend.
FTSE 100 immediate resistance is at 7878.2 & its immediate support level is 7838.2
HOW TO TRADE FTSE 100 IN THIS WEEK
FTSE 100 is trading in up channel; it will continue to trade upside until any trend reversal so, remain bullish on it.