European stocks decline due to disappointing profits and recessionary concerns.
FTSE 100 falls 51 points
European shares fell on Thursday after lackluster U.S. economic data and hawkish comments from central bankers rekindled fears of a global economic slowdown while downbeat corporate earnings at home soured investor appetite further.
Energy stocks fell 1.9%, tracking weakness in crude prices after U.S. economic data stoked fears of a recession in the world’s largest economy.
“Economic data remains noisy, making it hard to say for certain that the recent encouraging economic trends will continue,” said Mark Haefele, chief investment officer at UBS Global Wealth Management.
Leading shares have opened lower, in the wake of Wall Street’s late falls as poor US retail sales revived recession fears.
At the same time, despite signs of inflation easing, central banks are still set to persist with further interest rate rises, although in the case of the US Federal Reserve, perhaps at a slower pace.
So, in early trading, the FTSE 100 has fallen 35.34 points or 0.45% to 7795.36, a turnaround from earlier in the week when all the talk was of the index testing its record highs.
FTSE 100TECHNICAL ANALYSIS
DAILY CHART:
FTSE 100 is currently trading in the up channel.
FTSE 100 is currently trading above 20&50 SMA
RSI is in buying zone which suggests bullishness and Stochastic suggests a downtrend.
FTSE 100 immediate resistance is at 7808.3 & its immediate support level is 7763.8
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.
