FTSE 100 live outlook prediction analysis for 12th November 2020
Goldman Sachs expects the FTSE 100 to rise 14pc by the end of 2021 as a widespread recovery and strong monetary support boost stocks. At the same time oil prices could surge next year to as high as $65 per barrel, wiping out all of 2020’s losses as analysts anticipate demand will soar as the global economy rebounds thanks to the Covid vaccine.
Brent has already rebounded to $45 per barrel for the first time since the start of September, having fallen below $40 as new lockdowns were announced across major western economies in recent weeks.
- FTSE 100 outperforms Europe to mark eight consecutive sessions of gains
- Blue-chips to rise 14pc by end of next year, says Goldman Sachs
- Wetherspoon boss warns restrictions on pubs could last for years
- ECB urged to raise inflation target
Markets Edge Up
Asian shares looked set for modest gains after defensive megacap U.S. tech stocks rebounded amid speculation economic recovery will be slow. Futures pointed higher in Japan, Australia and Hong Kong. The S&P 500 rose to the highest since Sept. 2, while the Nasdaq 100 jumped more than 2%. Apple and Amazon.com surged alongside some stay-at-home shares that were hit hard by this week’s selloff. Treasury futures were little changed, with the cash market closed for a U.S. holiday. The dollar advanced, while oil pared earlier gains and gold retreated.
Trump Turmoil
After Biden’s win is certified, Donald Trump will enter the so-called lame-duck phase of his presidency with a capacity for disruption that is formidable. Already, he’s ousted his defense chief and remade Pentagon leadership. Disputes with China, the trade spat with Europe, and the upcoming deadline on U.S. government funding in December all offer the potential for market-moving action. Earlier this week, Secretary of State Michael Pompeo said the Trump administration is “not finished yet” with getting tough on China. Meanwhile, manufacturers there are worried that even under Joe Biden, the U.S. will remain hostile toward the nation.
[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
The global stock rally showed signs of stalling on Thursday as investors assess a deteriorating coronavirus situation in many large economies around the world and indicators of overheated equity markets. Treasuries rose.
Shares were mixed in Asia after a surge of about $6 trillion in the value of global equities so far in November. Chinese technology shares rallied following the $290 billion wipe out over plans for tougher regulations. U.S. and European equity futures slipped.
The S&P 500 earlier rose to the highest since Sept. 2, while the Nasdaq 100 jumped more than 2% as tech heavyweights surged alongside some stay-at-home shares that had lagged this week. The dollar was little changed.
The bears have brought it down from the 6400 round number test yesterday (and top of the 20 day Raff channel again) and also the S&P bulls failed to break above the 3580 resistance level. That remains the line in the sand for them at the moment, but as I write this it its now at S1 at 3545 and the bulls will be keen to defend this for a push higher today. Can they break 3580? Resistance on the 2 hour is just above at 3596 but if they get their skates on then a retest of the recent high from Monday at 3670 could well play out during the next few sessions.
For the FTSE the bulls defended just above the 6290 support level yesterday and we got the rise all the way to 6400. For today we may well see a similar pattern with a dip and rise play out and support initially is at 6320 with the key fib just below this at 6300 exactly. Coinciding with a round number we may well see this level hold if tested and another push up on the FTSE as well. That said, the 2 hour chart has gone bearish since this drop off 6400, and resistance from that is at 6400 from the Hull moving average. The bulls will need to break above that today. Still feeling like buy the dips is the right play for the moment, and if the S&P can push higher today/tomorrow then it should well pull he FTSE up with it.
If the bears break below 6300 today though, then a drop down to S1 at 6280 and then the 2 hour coral below that at 6254 are the levels I am looking at.
For the bulls, a break of 6400 would likely see a rise above the 20 day Raff channel (6410) and also R1 (6415) towards the 6475 level with any luck.
So, again it looks bullish for today. A hold of 6320, and possibly 6300 if it gets that low would work well for a push up to and past the 6400 level. Watch 3545 on the S&P for support and a break above 3580. Good luck today.
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