FTSE 100 live outlook prediction analysis for 3rd September 2020
It was a solid day for London-listed equities overall. Barratt Developments climbed 43.8p to 547.4p following its full-year results, leading a charge for construction groups across London’s main market. Strong house price data added to investor sentiment, helping the FTSE 100 climb off the three-month low it reached on Tuesday.
The FTSE 100 ended 1.35pc higher today to 5,940.95 while the FTSE 250 closed 0.57pc higher at 17,704.42.
The pound was hit by the positive move in the dollar. A spokesman for Boris Johnson said that major differences still exist between the UK and the EU in relation to reaching a deal. The EU chief negotiator, Michel Barnier, said he has flexibility in regards to negotiations and that he will be in London next week.
- Andrew Bailey said that the UK economy is facing a “record level” of uncertainty about its future, with a significant risk that growth will be far weaker than currently forecast.
- The Bank of England governortold MPs that forecasts drawn up in August were done in the face of huge uncertainty caused by the continued battle against COVID-19, structural changes in the economy, and Brexit trade talks.
- Bailey said the Monetary Policy Committee’s measure of uncertainty stood at its highest level in history during the August meeting.
- Bank of England Deputy Governor Dave Ramsden and another interest-rate setter, Gertjan Vlieghe, also warned of risks that Britain’s economy could suffer more damage than spelt out by the central bank last month.
- Dave Ramsden told lawmakers that the Bank of England had estimated the level of Britain’s economic output would permanently be about 1.5 percentage points lower than it would have been without the pandemic.
Markets Gain
Asian stocks looked set to follow their U.S. peers higher Thursday where shares continued to set fresh records despite a setback for some tech giants. The dollar advanced. Futures rose in Japan and Australia, though dipped in Hong Kong. The S&P 500 Index gained 1.5% to hit another all-time high with utilities and materials stocks leading the charge and technology shares lagging. The dollar gained the most in almost two weeks as the euro slid further below $1.20, a level it breached for the first time in more than two years Tuesday. Oil fell with precious metals and Treasury yields retreated. Elsewhere, 10-year bunds rose along with most of their sovereign peers across Europe as Germany took in 33 billion euros ($39 billion) of orders for its first green bonds.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Asian stocks were mostly higher after their U.S. peers set fresh all-time highs, as investors assesed signs the record-breaking rally may be broadening into other sectors and away from technology. The dollar edged higher.
South Korean shares outperformed, along with those in Japan and Australia. Stocks in Hong Kong and China fluctuated. European futures climbed almost 1%. S&P 500 contracts dipped after the index climbed 1.5% to hit another record with utilities and materials stocks leading the charge and technology shares lagging. The euro extended this week’s declines amid further signals the European Central Bank is concerned with the strength of the currency. Oil steadied and gold slipped.
Bit of a recovery yesterday from the bulls and the lagging FTSE. I still think we may well see a bit more of a recovery on this as its cheap compared to the others and as we all know its all just cycles and waves in trading. US markets might look overbought, FTSE oversold, so money flow from one to the other might play out. Talking of the US markets, they continued their relentless march up, retracing the C-19 drop and making more new highs on the S&P. 3594 is the key fib level for today, with the top of the 20d Raff at 3609. R1 splits these at 3604 and having dropped off the 3588 level last night we might well see some more profit taking should we reach these areas. The Dow is nearing double top area at 29600 as well, with the pre virus drop level.
For the FTSE today we have the 2 hour chart for good looking suport at the 5894 level and we also have the fib and S1 here. As such, should we get an initial dip down to this area then a long here is worth a go. If that holds then we should get a climb back towards the 5988 level, with key resistance just above 6000 for today. We have a few resistance indicators there as well, so we may well see some profit taking at the round number after this bounce off 5825 on Tuesday.
Below the 5898 level then the bear will be targeting the S2 level and recent low at 5833, with 5794 below that. Looking at the chart now, I can see a dip and rise playing out, and that 5900 level holding, if we did dip that low.
For the bulls, above the 6004 level then 6041 remains as the recent high, then 6060 above that. 6042 is also R2 for today, so should we get that high we may well see a stutter here. Above this level then that 6108 level is still in play as it has been all week – it also ties in with R3 for today, which is at 6108. Not sure that the bulls will have the power to get it that high today but you never know!
So, looking at 5900 as decent support, if the pivot breaks at 5938 initially. Resistance wise, I am looking at 6000 then 6040, 6060 and 6110. So mildly optimistic for today and more upside, with a dip and rise playing out. Good luck today.
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