FTSE 100 is higher as Persimmon builds up a good gain
FTSE 100 Nears Record High Despite Ongoing Turbulence in UK
FTSE 100 up 44 points
Leading shares are heading higher ahead of the key US inflation figures.
The FTSE 100 is up 28.30 points or 0.37% at 7753.28 in early trading.
Michael Hewson, chief market analyst at CMC Markets UK, said: “Optimism over today’s US inflation numbers has helped drive a positive start to 2023 for both European and US markets so far this year…
“Sentiment in Europe has also been helped by the recent milder weather which has fuelled optimism that the start of 2023 might offer some respite from further increases in energy prices.”
The market believes recent figures may lead to a more measured approach by the US Federal Reserve to rate rises, despite hawkish comments from some Fed members earlier this week.
Hewson said: “The belief that a pivot is coming may also have something to do with the dire predictions of the likes of the IMF last week, and earlier this week by the World Bank, who both warned the global economy was on a razors edge, and at risk of sliding into a prolonged recession
“[But] if core prices were to come in higher than expected we could see a sharp correction lower for stocks and a sharp rebound in the US dollar, and a shift in focus back to 50bps in February.
FTSE 100 TECHNICAL ANALYSIS
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 up trend.
FTSE 100 immediate resistance is at 7760.5 & its immediate support level is 7724.0
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.