FTSE 100 News Or Price Prediction & FTSE 100 Technical Analysis – 15 Dec 2022
15 Dec 2022
FTSE 100 NEWS AND TECHNICAL ANALYSIS
Before the BoE rate decision, the FTSE 100 mirrors the depressing global mood
UK’s export-driven FTSE 100 fell on Thursday, tracking glum global sentiment, while traders avoided bets on risky assets ahead of the Bank of England’s monetary policy decision.
The blue-chip FTSE 100 fell 0.7%, while the FTSE 250 shed 0.6% by 9:29 GMT.
Global markets sagged after the U.S. Federal Reserve said it would continue raising interest rates, rekindling fears that tighter policy could trigger a recession. [MKTS/GLOB]
“Markets are in the red, taking their cues from a negative close on Wall Street after the Fed’s dot plot suggested the terminal rate could be higher than expected, above 5%,” said Victoria Scholar, Head of Investment at interactive investor.
After the Fed’s hawkish commentary on Wednesday, traders now await the BoE’s monetary policy meeting at 1200 GMT.
UK data, earlier this week, reflected easing inflation, but wage-growth figures raised concerns that underlying inflation is yet to cool.
“The split within the Monetary Policy Committee could give a hawkish edge to the meeting. That would really mess up the central bank’s communication and might prompt a very confused market reaction,” said Stefan Koop man, senior market economist at Rabobank.
Besides the 50-basis point hike on Thursday, Koop man expects BoE’s terminal rate to be 4.75% by mid-2023.
Banks declined 1.4%, bogged down by a 1.9% drop in HSBC After a few Hong Kong-based investors sought support for a resolution, at the lender’s 2023 annual meeting, to restore the bank’s pre-pandemic dividend and spin-off assets.
Among stocks, Curry lost 8.2% on cutting its annual profit outlook, weighed down by the electrical retailer’s international markets as higher costs force customers to cut down on spending. Retailers dropped 1.4%.
FTSE 100 TECHNICAL ANALYSIS
FTSE 100 is currently trading in up channel.
FTSE 100 is currently trading Below 5&20 SMA
RSI is in buying zone which suggests bullishness and Stochastic is suggesting downtrend.
FTSE 100 immediate resistance is at 7495.43 & its immediate support level is at 7427.1
HOW TO TRADE FTSE 100 INDEX IN THIS WEEK
FTSE 100 is moving in up channel; it will remain in up channel until any trend reversal. So, remain bullish on it.