INDEX FTSE 100 NEWS AND TECHNICAL ANALYSIS – 17 FEBRUARY 2023
17 Feb 2023
Midday in London: NatWest declines as stocks remain negative
The FTSE 100 was down 0.3% at 7,985.77, having taken its opening cue from weak US and Asian sessions.
Steve Clayton, head of equity funds at Hargreaves Lansdown said a higher-than-expected producer price report suggested US inflation could prove more stubborn than many expected.
“That kyboshed hopes of a rapid return to lower US interest rates, sending stocks sliding and bond yields rising in the States last night,” he said.
On home shores, investors were digesting the latest data from the Office for National Statistics, which showed that retail sales unexpectedly rose in January, but the outlook remains weak overall.
Retail sales were up 0.5% on the month following a 1.2% decline in December. Economists had been expecting a 0.3% fall.
Non-food store sales rose 0.6% over the month following a 2.5% decline in December 2022. Feedback from retailers suggested that growth was supported by sales promotions, the ONS said. Still, sales remained 2.9% below their pre-pandemic levels.
On the year, retail sales were down 5.1% in January following a 6.1% decline the month before and versus expectations for a 5.5% fall.
The ONS said sales volumes were 1.4% below their pre-pandemic February 2020 level.
ONS director of economic statistics Darren Morgan said: “After December’s steep fall, retail sales picked up slightly in January, although the general trend remains one of decline.
“In the latest month, as prices continue to fall at the pumps, fuel sales have risen.
“Meanwhile, discounting helped boost sales for online retailers as well as jewelers, cosmetic stores, and carpet and furnishing shops.
“However, after four months of consecutive growth, clothing store sales fell back sharply.”
Paul Dales, the chief UK economist at Capital Economics, said: “On the face of it, these data add to the view that activity is holding up fairly well. But there are two reasons not to get too carried away. First, retail sales were very weak last year but overall consumer spending held up due to stronger non-retail spending (particularly in restaurants). When households’ finances are under pressure, it possible that any improvement in retail sales will be just be met by a softening in non-retail spending.
FTSE 100 TECHNICAL ANALYSIS DAILY CHART:
FTSE 100 is currently trading in the up channel.
FTSE 100 is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting no trend.
FTSE 100 immediate resistance is at 8011.1 & its immediate support level is 7979.6
HOW TO TRADE FTSE 100 IN THIS WEEK
FTSE 100 is trading in an up channel; it will continue to trade upside until any reversal so, remain bullish on it.