. Daily Index Analysis - FTSE 100 Soars as Bank of England Stuns Markets

Daily Index Analysis – FTSE 100 Soars as Bank of England Stuns Markets

Daily Index Analysis – FTSE 100 Soars as Bank of England Stuns Markets

03 Nov 2023

Introduction:

In the global indices market, Asian shares and bonds experienced a significant boost as Federal Reserve Chair Jerome Powell’s remarks fuelled hopes of an end to rate hikes. Asian indices, including the Shanghai composite, Singapore MSCI, Hang Seng Index, Nikkei 225, and Kospi, saw notable gains. European shares rallied on expectations of a rate pause and positive corporate results. Meanwhile, on Wall Street, the major stock indices surged by approximately 2%, as investors bet on the possibility of peak U.S. interest rates and were buoyed by strong earnings reports.

Market In Focus for today – FTSE 100

European shares surged by more than 1% on Thursday, with notable gains in rate-sensitive sectors like real estate and technology. This upswing was fuelled by increasing confidence that central banks, following the decisions to maintain interest rates by the U.S., UK, and Norway, have concluded their tightening of credit. The FTSE 100 in the UK advanced by 1.4% following the decision by the Bank of England to keep interest rates at a level not seen in 15 years.

TECHNICAL OVERVIEW:

Moving Averages:

Exponential:

  • MA 5: 7437.61 | Positive Crossover | Bullish
  • MA 20: 7397.36 | Positive Crossover | Bullish
  • MA 50: 7436.46 | Positive Crossover | Bullish

Simple:

  • MA 5: 7441.04 | Negative Crossover | Bearish
  • MA 20: 7367.86| Positive Crossover | Bullish
  • MA 50: 7464.08 | Negative Crossover | Bearish

RSI (Relative Strength Index): 55.57| Buy Zone| Positive

Stochastic Oscillator: 91.82 | Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 7457.5 | R2: 7583.7
  • S1: 7367.2| S2: 7267.2

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 7485.8 | Take Profit: 7583.7| Stop Loss: 7418.0.

Elsewhere in the Indices Market

Asian shares, bonds rally as Powell feeds hopes of end to rate hikes

The Shanghai composite is up at 0.71%. Overall, the Singapore MSCI up 0.2.28% to 278.55. Over in Hong Kong, the Hang Seng Index up 2.52% to 17,664.12. In Japan, the Nikkei 225 up 1.10% to 31,949.89, while the Topix index was up 0.51% to 2,322.39. South Korea’s Kospi up 1.08% to 2,368.34. Australia S&P/ASX 200 up 1.14% to, 6,978.20.

European shares rally on rate pause hopes, upbeat results.

The DAX futures contract in Germany traded 0.11 higher, CAC 40 futures in France down 0.15% to 7,049.96 and the UK 100 futures contract in the U.K. down 0.07% to 7,441.43.

Wall St rally indexes rally on bets of peak US interest rates, strong earnings.

The three primary stock indices of Wall Street surged by approximately 2% on Thursday, driven by optimism that the U.S. Federal Reserve may have concluded its interest rate increase efforts. Additionally, a series of positive quarterly financial reports contributed to the overall optimistic sentiment in the market.

Indexes: Dow up 1.17%, S&P 500- up 1.89%, Nasdaq up 1.78%.

Corporate News:

Amazon.com, Inc. (AMZN) up 0.78% at 139.07, Walt Disney Co (DIS) up 2.74% at 83.29, Apple Inc. (AAPL) up 2.07% at 177.57. Goldman Sachs Group Inc (GS) up 2.15% at 313.76, Morgan Stanley (MS) up 3.54% at 73.46.

Key Economic Events & Data Release Today:

(AUD) Retail Sales (MoM) Actual 0.9%, Forecast –0.3%, Previous 0.3% at 06:00.

(GBP) Service PMI (Oct) Forecast 49.2, Previous 49.2 at 15:00.

(CAD) Employment Change (Oct) Forecast 22.5K, Previous 63.8K at 18:00.

(USD) Unemployment Rate (Oct) Forecast 3.8%, Previous 3.8% at 18:00.

(USD) Nonfarm Payrolls (Oct) Forecast 180K, Previous 336K at 18:00.

(USD) ISM Non-Manufacturing PMI (Oct) Forecast 53.0, Previous 53.6 at 19:30.