FTSE 100: NEWS & TECHNICAL Analysis
European Stocks Higher; M&A Talk Helps Sentiment
European stock markets edged higher Tuesday helped by M&A talk, but investors remain cautious ahead of the release of U.S. inflation data that will offer a crucial guide to the Federal Reserve’s interest rate outlook.
By 04:05 ET (08:05 GMT), the DAX in Germany traded 0.3% higher, the CAC 40 in France rose 0.7%, and U.K.’s FTSE 100 climbed 0.2%.
Helping the tone Tuesday was a report from Sky News that French industrial group Schneider Electric (EPA:SCHN) is nearing a deal to take full control of British software maker AVEVA (LON:AVV) for about 3.5 billion pounds ($4.1 billion). Aveva stock rose 3.2% as a result, while Schneider climbed 1%.
UBS (SIX:UBSG) stock also rose 1.5% after the Swiss banking group announced plans to increase its dividend and anticipated its share repurchases will exceed $5 billion for 2022.
On the flip side, Ocado (LON:OCDO) stock slumped over 12% and Marks and Spencer (LON:MKS) dropped around 2% after Ocado Retail, a joint venture between the two companies, warned that it expects to report a decrease in full-year sales, as shoppers rein in spending in response to surging prices.
The U.K. unemployment rate fell to its lowest since 1974 at 3.6% in the three months to July, data showed earlier Tuesday, as more people left the labor market, but the number of people in employment grew by only 40,000 in the May-July period.
German consumer prices climbed to 7.9% annually in August, from 7.5%, which is likely to point to an ugly ZEW economic sentiment survey later in the session. However, that is still likely to be overshadowed by the release of the U.S. data, due at 08:30 ET (12:30 GMT), as the U.S. CPI numbers will frame the Fed’s policy meeting next week and set the tone for weeks to come.
FTSE 100 Technical Analysis: Daily Chart
In the daily charts, FTSE 100 is trading in an up channel. FTSE 100 is currently trading above all SMA.
RSI is in buying zone which indicates bullishness. MACD is currently above zero which indicates bearishness.
Its immediate support is 7441.90 & the resistance level is at 7558.30.
FTSE 100 INDEX will trade in up channel until there is trend reversal.
How to Trade FTSE 100 INDEX this Week:
FTSE 100 INDEX will follow the uptrend until their trend reversal. So, remain bullish on FTSE 100 INDEX.
