FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
The FTSE 100 ended a day of heavy fluctuation as volatility continues to hit markets. The Ukraine crisis comes just as uncertainty was rising owing to surging prices caused by a spike in demand for oil, tight supplies and pandemic-induced supply chain snarls, among other things. The UK has announced it will phase out the import of Russian oil and oil products by the end of 2022.
Traders remain fearful of stagflation – a vicious mixture of low economic growth and elevated inflation.
London’s leading index closed the session flat at 6,964 just before the UK and the US announced bans on Russian oil imports.
China is said to be considering a swoop on Russian energy and commodity giants such as Gazprom and Rusal as the US gears up to target Moscow’s energy sector with new sanctions.
Beijing is in talks with its state-owned firms – including China National Petroleum, Sinopoec and China Minmetals – over any opportunities to buy or increase stakes in Russian companies or assets, Bloomberg reports.
It comes as President Joe Biden has blocked imports of Russian oil and gas while the UK said it would phase them out by the end of 2022. Europe faces a painful path to wean itself off Russian gas. While analysts say the first few months can be managed with existing stockpiles, new solutions are needed for the long term.
Oil prices rose 4pc to as high as $130 a barrel earlier in the day ahead of the announcements. There is now the risk of retaliation by Russia along with costs rising further across the board.
Food Crisis
Russia’s invasion of Ukraine means the food inflation that’s been plaguing global consumers is now tipping into a full-blown crisis, potentially outstripping even the pandemic’s blow and pushing millions more into hunger. Together, Russia and Ukraine account for a whopping portion of the world’s agricultural supplies, exporting so much wheat, corn, sunflower oil and other food that it adds up to more than a tenth of all calories traded globally. Now, shipments from both countries have virtually dried up, and the shock is already reverberating across the world.
FTSE 100 live outlook prediction analysis for 9th March 2022
The bulls are fighting back now and having the FTSE 100 back above 7000 is a good sign. We have a decent dividend today of 28 points which should give a slightly bullish bias to today. If we do get any opening dips this morning on the FTSE100, Dax or S&P then worth buying them today.
The S&P500 will be keen to regain ground above the 4200 level and now needs to break above 4205 initially, and then 4270 above that. The latter is the 2h coral line and could prove to be quite key. It will be the first test of it as well since it changed to bearish trend. I closed the short from Monday for a decent gain and we are now forming a decent W (double bottom essentially) on the 2h chart. That suggests more upside coming.
For the FTSE100 the bulls will be looking to break above the 7100 level and hold above it too. That then keeps alive the hopes of a test of the top of the 10 day Raff channel at 7225 and we also have the daily 200ema here. Initial resistance is at the overnight high at 7105 and then R1 at 7143 above that.
Above 7143 then the bulls may well manage that 7225, and then R2 7262 above that. With the volatility these levels may well be attainable.
Support wise, the daily pivot is the main one at 6992 to start with and just below the key 7000 level. Should the bears break this though then 6949 is the key fib and worth a long off. A break off this though and it gets quite bearish again and 6873 for S1 would likely be seen.
Once again a lot will depend on news flow. The news about weaning ourselves off Russian gas and oil has seen oil continue higher, though the Chinese are sniffing around the Russian oil companies now. Hopefully not a cut off your nose to spite your face scenario going to play out.
So for today I am looking at a bullish bias for equities and a bit of a slide in gold. Looking at the charts and yesterdays climb should continue really.
Good luck today.
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