FTSE 100 lower, UK GDP rises 0.5% and London Stock Exchange jumps on Microsoft deal
FTSE 100 opened lower ahead of a busy week of central bank announcements and economic data despite a stronger-than-expected rebound in UK GDP figures in October.
London’s blue-chip index is down by 23 points at 7,454 and the FTSE 250 is 81 points lower at 18,835.
The UK economy grew by 0.5% in October, ahead of City expectations of 0.4% growth, but this is unlikely to stop the economy from heading into recession in quarter four according to economists.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics said: “We think that GDP will fall by about 0.3% month-to-month in both November and December, leaving it down 0.2% on a quarter-on-quarter basis.”
“Activity indicators from S&P Global, Lloyds (LON: LLOY) And the CBI, as well as the extremely low level of GfK’s consumer confidence index, all are consistent on past form with falling GDP.”
London Stock Exchange Group PLC jumped 4% in early trading as US tech giant Microsoft Corp. has announced a 10-year partnership and took a stake of around 4% in the UK bourse operator.
The partnership involves next-generation data and analytics, as well as cloud infrastructure solutions, according to a statement by the LSEG.
It involves a new data infrastructure for the London exchange and analytics and modelling solutions with Microsoft Azure, AI, and Microsoft Teams.
FTSE 100 lower ahead of busy week of rate calls.
FTSE 100 TECHNICAL ANALYSIS
In daily chart FTSE 100 is currently trading in up channel.
FTSE 100 is currently trading below 20 & 50 SMA
RSI is in buying zone which suggests bullishness and Stochastic is suggesting down trend.
FTSE 100 immediate resistance is at 7474.8 & its immediate support level is at 7445.5
HOW TO TRADE FTSE 100 INDEX IN THIS WEEK
FTSE100 is moving in up channel; it will remain in up channel until any trend reversal. So, remain bullish on it.