12th February 2018
The FTSE 100 has fought back from the 6980 low on Friday, and the futures are sitting at 7165 as I write this. Asian markets had a decent Monday session, after U.S. stocks ended the week on a high note as fears of interest-rate hikes that pushed markets into a correction persist. The VIX ended almost three times higher than its Jan. 26 level. Ten-year Treasury yields finished the week at 2.85 percent, near where they started. This week’s U.S. inflation report may be the next catalyst for the tug-of-war between stocks and bonds that underlies the market turbulence.
With the out of hours low of 6980, we now have a new line in the sand and a move below this is likely to see 6800. On the flip side, if the bulls can better 7200, then the immediate panic may well be over and we might see a climb towards the daily resistance level of 7450.
FTSE 100 Forecast and Prediction
Going to be an interesting week this week as the markets try and make sense of last week’s moves and whether the correction has further to go, or if bond yields are going to be further affected by monetary tightening, such as that alluded too by the BoE last week.
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