FTSE 100 closes red as Rio Tinto drags index lower
The UK’s blue-chip index finished 47 points lower at 7,931 points for a 0.6% loss on the day.
FTSE 100 closes 47 points lower
US stocks oscillate around opening levels ahead of Fed minutes
Lloyds Bank up on £2bn buyback, annual profits flat.
The UK’s blue-chip index finished 47 points lower at 7,931 points for a 0.6% loss on the day as commodity price weakness dragged the FTSE 100 lower.
Meanwhile, investors’ eyes are turning to the US Federal Reserve meeting minutes, due to be released later today.
“Expectations of ‘higher for longer’ in US interest rates mean that commodity prices have continued to tumble, and this has seen the FTSE 100 reverse some of its stratospheric performance,” said IG’s Chris Beauchamp.
“If, as seems likely, stocks struggle for the time being, then the FTSE seems set to trim more of its gains, with commodity weakness remaining a key driver. But the index still has plenty of ground to make up, and if the global economy does avoid a hard landing, then the FTSE’s makeup puts it in a good place for more gains.”
Today FTSE 100 opens lower, down 42 points, ex-divas weigh
Fed minutes show more rate rises to come in the US
Bank of England policymaker Catherine Mann has doubled down on interest rates and warned more will be needed to control inflation.
Current consumer price inflation remains at four-decade highs of 10.1%, with Mann arguing that, should it seep into wages, could result in an extended persistence of inflation.
Speaking at the Resolution Foundation in London, Mann argued the UK risks falling in between the combination of hight prices and low growth.
Since December 2021, the BoE has bumped interest rates from 0.1% to 4%, with markets expecting interest to hit at least 4.5%.
FTSE 100 was down 42 points to 7,889.
FTSE 100 TECHNICAL ANALYSIS DAILY CHART:
FTSE 100 is currently trading in the up channel.
FTSE 100 is currently trading above 20&50 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting a downtrend.
FTSE 100 immediate resistance is at 7924.3 & its immediate support level is 7891.3
HOW TO TRADE FTSE 100 IN THIS WEEK
FTSE 100 is trading in the up channel, but it has reversed to the downside & currently it is at an important support zone if it breaks the support level then, we can see further to the downside.