FTSE100 Focus: Uncertain start to new week

FTSE100 Focus: Uncertain start to new week

The FTSE100 is slightly offside into the new week, as GBP remains up around last week’s highs, to the detriment of the index’s heavy international exposure, fuelled by the dollar extending last week’s bearish reversal. Interestingly Copper in the red (over-capacity concerns), not benefiting from USD weakness, thus hindering Miners. Oil, however, is understandably off its lows, but Energy names offering opposing reactions.

Contributors: FTSE -15pts; dragged lower by RDSb/BATS (stronger GBP), PRU (profit taking), BT (breakdown, further digestion of results/outlook), Miners (stronger GBP, Copper in the red) and VOD (M&A spend). Limiting the declines, are positive contributions from GSK/RB (extending rally after pause) ULVR (broken above 200-day MA), BP (Oil price higher) and SHP (Takeda share price rise increases implied value of takeover bid).

Technicals: The FTSE100 has broken below 4-day rising support at 7715. It remains in a 7-week rising channel but, if it breaks below Friday’s lows of 7690, the floor of the channel won’t offer support until 7650.”

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Categories: Analysis, News
Tags: FTSE 100

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