Good morning, despite the bears best efforts to really break that 6725 the bulls held on and in fact fought back pretty well. the key was for a close above 6745 (just achieved) so I think we will see 6810 next, being the top of the 10 day Bianca channel, and the bear charge is again slightly delayed. News out yesterday was the best PMI since 1997 in the UK ironically triggering the drop we saw from the 6790 level. US data out later this week on economic growth and employment will have more of an impact.
Asia Overnight from Bloomberg
Asian stocks rose, snapping a four-day drop on the regional equities benchmark, as Japanese shares were boosted by the yen weakening against the dollar and Commonwealth Bank of Australia posted a surge in profit.
The MSCI Asia Pacific Index gained 0.3 percent to 141.39 as of 12:29 p.m. in Hong Kong as nine of the 10 industry groups on the measure advanced. Japan’s Topix index rose 0.9 percent today and is the best-performing developed equity market in 2013 amid optimism Prime Minister Shinzo Abe’s policies and Bank of Japan monetary easing will stoke inflation.
“It’s a very favorable state for equities,” Richard Lewis, who helps oversee $261 billion as the head of global equities at Fidelity Worldwide Investment, told Bloomberg TV from Melbourne. “Japan and the Abenomics story, and the real drive to get some domestic inflation through the system, is still certainly attractive.”
The MSCI Asia Pacific Index climbed 9 percent this year through yesterday amid unprecedented stimulus from Japan’s central bank and optimism the Federal Reserve will continue its monthly bond buying into 2014.
Futures on the Standard & Poor’s 500 Index added 0.4 percent today. The S&P 500 has rallied almost 24 percent in 2013, challenging 2009 for its best yearly gain in a decade. The gauge yesterday slid 0.3 percent, snapping a two-day winning streak, as investors awaited this week’s data on economic growth and employment.
European Growth
The European Union yesterday cut its forecast for euro-area growth next year and raised its unemployment estimate as the economy struggles to regain momentum after a record-long recession.
FTSE Outlook
Yesterday’s short order for 6810 didn’t take however I might just have been a day early with that and we see that level today. With the 6725 area holding (albeit with a slight dip below) the bulls have regained the momentum for the moment though data later this week might upset that apple cart. Today’s pivot level is 6743 (and yesterday close at 6746) should act as support on any initial dips. However if that level, and also yesterday’s low of 6708 fail to hold then 6675 is likely to be the next area of support. Certainly the Bianca trends are favourable for a bit more up for the moment, with 20 day support at 6744 and 10 day at 6725. Tomorrow and Friday might be a different story though, and could be bearish, maybe with poor data being the catalyst for that.