FTSE 100: NEWS & TECHNICAL Analysis
European Stocks Higher; German Producer Prices Soar to Record Levels
European stock markets edged higher Tuesday, following the global trend upwards, although sentiment remains fragile ahead of the start of the U.S. Federal Reserve’s two-day policy meeting.
By 04:00 ET (08:00 GMT), the DAX in Germany traded 0.1% higher, the CAC 40 in France rose 0.1%, and U.K.’s FTSE 100 climbed 0.4%.
European equities are staging a recovery from last week’s selloff, carrying on from the positive close on Wall Street, where the major U.S. benchmark averages climbed from 9-week lows.
However, gains are tentative ahead of the start of the Fed’s latest meeting, which is widely expected to result in another 75-basis point interest rate hike following last week’s higher than expected consumer inflation figures.
The Fed won’t be alone in raising rates this week, with Sweden’s Riksbank hiking by a full percentage point earlier Tuesday and the Bank of England, the Swiss National Bank, and the Norges Bank in Norway all expected to largely follow suit.
German producer prices rose by 7.9% in August, and were up 45.8% from a year earlier, likely increasing pressure on the European Central Bank to keep raising interest rates.
Both figures were records in the 83-year history of the Federal Republic and were well above analysts’ expectations.
FTSE 100 Technical Analysis: Daily Chart
In the daily charts, FTSE 100 is trading in an up channel. FTSE 100 is currently trading below all SMA.
RSI is in selling zone which indicates bearishness. MACD is currently below zero which indicates bearishness.
Its immediate support is 7183.70 & the resistance level is at 7290.75.
FTSE 100 INDEX will trade in down channel until there is trend reversal.
How to Trade FTSE 100 INDEX this Week:
FTSE 100 INDEX will follow the downtrend until their trend reversal. So, remain bearish on FTSE 100 INDEX.