With the FTSE 100 rising, JP Morgan anticipates a “golden era” for Lloyd’s insurers
FTSE 100 firmer, up 16 points
FTSE 100 has held its early gains although Diageo PLC has slipped back on further consideration of its interim numbers.
The lead index is now up 15 points and Andy Haldane, the Bank of England’s former chief economist, has called on the Bank of England to slow down its pace of interest rate rises this year.
Haldane, who is now chief executive at the Royal Society of Arts, told BBC Radio 4’s Today programme that he hoped that now headline inflation had peaked “there’s a decent chance that central banks will go a bit slower during the course of this year”.
He said he hoped they “won’t become too much of a break on the recovery.”
Hopes that central banks may be close to a “pivot” on interest rates have helped push risk on sentiment so far in 2023 with the Bank of Canada signaling yesterday that it was pausing further rate hikes.
FTSE 100 bounced back strongly in early exchanges on Thursday lifted by a late rally in the US and as investors digested a number of trading updates and broker recommendations.
But the research team at JP Morgan gave some reasons for caution on the New Year equity rally.
“While major equity market indices have posted a positive return YTD, our teams are more cautious from both a top-down and bottom-up perspective, with our Chief Global Markets Strategist highlighting risks to both earnings expectations and equity flows, and our European Equity Research teams holding their highest ratio of UW recommendations in over 5 years” analysts pointed out.
FTSE 100 TECHNICAL ANALYSIS
FTSE 100 is currently trading in up channel.
FTSE 100 is currently trading above 20&50 SMA
RSI is in buying zone which suggests bullishness and Stochastic is suggesting no trend.
FTSE 100 immediate resistance is at 7080.3 & its immediate support level is 7748.0
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.