. Daily Index Analysis - FTSE 100 Soars to 2-Month High on Inflation Decline

Daily Index Analysis – FTSE 100 Soars to 2-Month High on Inflation Decline

Daily Index Analysis – FTSE 100 Soars to 2-Month High on Inflation Decline

01 Dec 2023

Introduction:

In the indices market, Asian equities face declines after a robust November, influenced by mixed signals from PMIs. European stocks, however, enjoy their best month since January, driven by falling inflation and rising expectations of rate cuts. The Dow Jones in the US closes at its yearly high, marking the culmination of a record-breaking month.

Market In Focus For Today – FTSE 100

European shares surged to a level not seen in over two months on Thursday, concluding November significantly higher. This was fuelled by data indicating a decline in inflation in both the U.S. and Europe, fostering expectations of imminent interest rate cuts by central banks.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 7482.44 | Positive Crossover | Bullish
  • MA 20: 7466.68 | Positive Crossover | Bullish
  • MA 50: 7458.14 | Positive Crossover | Bullish

Simple:

MA 5: 7479.03 | Positive Crossover | Bullish

MA 20: 7465.44| Positive Crossover | Bullish

MA 50: 7455.58 | Positive Crossover | Bullish

RSI (Relative Strength Index): 58.37| Buy Zone| Bullish

Stochastic Oscillator: 79.15| Buy Zone | Positive

Resistance And Support Levels:

R1: 7512.1 | R2: 7628.9

S1: 7433.0| S2: 7331.04

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 7538.5 | Take Profit: 7628.9| Stop Loss: 7489.5.

Elsewhere in the Indices Market

Asian Equities Decline Following a Strong November, With Mixed Signals From Pmis.

The Shanghai composite is up at 0.07%. Overall, the Singapore MSCI up 0.22% to 271.93. Over in Hong Kong, the Hang Seng Index down 1.25% to 16,830.30. In Japan, the Nikkei 225 was down 0.17% to 33,431.51, while the Topix index was up 0.32% to 2,382.52. South Korea’s Kospi down 1.19% to 2,505.01. Australia S&P/ASX 200 is down 0.20% to, 7,073.20.

European Stocks Have Their Best Month Since January As Falling Inflation Encourages Expectations On Rate Cuts.

The DAX futures contract in Germany traded 0.75 higher, CAC 40 futures in France up 0.44% to 7,342.89 and the UK 100 futures contract in the U.K. up 0.65% to 7,502.15.

In The US Market Dow Closes At Its Highest Point Of The Year, Capping A Record-Breaking Month.

The Dow Jones Industrial Average concluded at its peak since January 2022, capping off a remarkable month for stocks. Investors interpreted subdued inflation data as a signal of potential Federal Reserve monetary policy easing.

Indexes: Dow up 1.47%, S&P 500- up 0.38%, Nasdaq down 0.23%.

Corporate News:

Netflix, Inc. (NFLX) is down 0.67% at 473.97, Tesla, Inc (TSLA) is down 1.78% at 239.79, and Apple Inc. (AAPL) up 0.29% at 189.91. Goldman Sachs Group Inc (GS) is up 0.38% at 341.54, and Morgan Stanley (MS) is up 1.01% at 79.34.

Key Economic Events & Data Release Today:

(CNY) Caixin Manufacturing PMI (Nov) Actual 50.7, Forecast 49.3, Previous 49.5 at 07:15.

(EUR) Spanish Manufacturing PMI (Nov) Forecast 42.3, Previous 45.1 at 14:25.

(GBP) Manufacturing PMI (Nov) Forecast 46.7, Previous 44.8 at 15:00.

(EUR) ECB President Lagarde Speaks at 17:00.

(CAD) Employment Change (Nov) Forecast 15.0K, Previous 17.5K at 19:00.

(USD) ISM Manufacturing PMI (Nov) Forecast 47.6, Previous 46.7 at 20:30.

(USD) Fed Chair Powell Speaks at 21:30.