FTSE 100 makes modest gains as US stocks open cautiously
The FTSE 100 held onto its gains as US equities began the week cautiously in anticipation of a flurry of earnings reports this week from major companies like Tesla, Johnson & Johnson, Goldman Sachs, Morgan Stanley, Johnson & Johnson, Procter & Gamble, Netflix, and Tesla.
The FTSE 100 has held steady for most of the day but has just dipped below 7,900 now, up 25 points.
The Dow Jones Industrial Average was only 2 points higher at 33,888 about 15 minutes after the New York market opened, while the Nasdaq Composite was down 0.1% and the S&P 500 was unchanged.
With a 4.8% fall in 1Q earnings anticipated, she noted, “the bar is low for earnings season.” “Some sectors, such as energy, are likely to perform better than most.”
Cincotta pointed out that in addition to profits, investors are still debating the Federal Reserve’s future course of action as speakers this week include Cleveland Fed President Loretta Mester and New York Fed President John Williams.
She stated that “Federal Reserve Governor Christopher Waller said that the Fed will need to hike rates again to tame inflation, which is still very high.” The probability of a 25-basis point increase in May is currently priced in at 83%, up from 72% a week ago.
Since inflation is predicted to return to single digits later this week, economists believe the Bank of England won’t hike interest rates again.
The Office for National Statistics will issue the most recent CPI print in the UK on Wednesday. The data is anticipated to show that inflation has unexpectedly dropped back below 10% after unexpectedly rising in August.
FTSE 100 TECHNICAL ANALYSIS DAILY CHART:
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 no trend.
Immediate resistance is at 7916.70 & its immediate support level is 7871.11
HOW TO TRADE FTSE 100 IN THIS WEEK
The FTSE 100 is currently rising in a channel; it has broken its previous day high and is now holding above the support zone. Upward movement in the FTSE 100 will continue until the trend reverses.
