FTSE 100 live outlook prediction analysis for 11th March 2021
The FTSE 100 missed out on a rally elsewhere, dipping in and out of the red before closing the day flat at 6,725.6, down 4.7 points, as miners continued to drag on the index on iron demand concerns.
Strong risers included Spirax-Sarco, which climbed 380p to £114 following full-year results which showed the engineering group performing solidly through 2020. The group, which makes pump and steam-management products, posted revenues of £1.19bn, little changed from 2019’s £1.24bn, while its profit before tax increased 1pc to £240.1m.
At the opposite end of the scale, Chilean miner Antofagasta dropped 53p to £16.88 after looming threats of a strike at its top copper mine, where workers have rejected a new pay offer.
On the FTSE 250, which ended up just 24.2 points at 21,406.7, Quilter jumped 13.6p to 160.2p after beating profit estimates. The wealth manager said it had come out of 2020 “operationally stronger”.
Biden’s Big Win
President Joe Biden’s $1.9 trillion Covid-19 relief bill cleared its final congressional hurdle, with the House passing the bill on a 220-to-211 vote, sending it to the president for his signature. The final vote caps a nearly two-month sprint from the time the package was first unveiled. The bill is a major political victory for the new president, displaying his influence over a Democratic Party in control of Congress by the thinnest of margins. The bill provides new health-insurance subsidies and child-tax credits, while extending $300 per week supplemental unemployment benefits into September. There’s also $360 billion for state and local governments, a bailout for troubled union pensions and funds to ramp up vaccinations and school re-openings.
Dollar Weakens
Asia stocks are poised for a muted open following gains in U.S. equities as a tame inflation report helped the recovery in value stocks. Treasury yields dipped and the dollar weakened. The S&P 500 rose for a second day, led by financial firms and producers of raw materials. The Dow Jones Industrial Average closed above 32,000 for the first time. Futures signaled a higher open for equities in Japan and Australia, and were flat in Hong Kong. The yield on the 10-year Treasury note fell toward 1.50%, as bonds shrugged off a tepid government auction. Crude topped $64 a barrel in New York, while gold edged higher. Bitcoin briefly topped $57,000.[Bloomberg]
US & Asia Overnight from Bloomberg
Asian stocks advanced with U.S. futures amid a rally in China on Thursday after modest gains in the U.S., where a tame inflation report helped to keep Treasury yields and the dollar in check.
China’s CSI 300 index rallied the most in about two months, extending a rebound as the nation’s key week-long legislative meeting concludes. Technology stocks led a wider Asian rally. S&P 500 futures increased after the benchmark rose for a second day, with financial and materials shares leading as the rotation to value resumed. Nasdaq 100 contracts outperformed.
Ten-year Treasury yields held well below their recent one-year highs, as the market turned its attention from Wednesday’s tepid auction to the 30-year reopening Thursday. The dollar was flat. Crude climbed toward $65 a barrel.
Weaker-than-expected consumer price inflation data Wednesday eased concerns about the U.S. economy overheating, and helped to further stall the rising trend in bond yields. The mood remains cautious on high-priced growth stocks, which suffered most as yields rose, while cyclical shares continue to benefit from optimism about the recovery as the U.S. stimulus package goes into effect.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Nice movements yesterday on the FTSE tagging both the long and the short orders, and overnight we have seen the bulls continue to push the FTSE higher. It looks like we might well double top with Tuesdays high at 6788 today, after an initial dip down to the daily pivot at 6715, and possibly another test of the 30m 200ema at 6700.
To start with we have resistance at the 6749 R1 level, and then also a key fib just above this at 6755. The S&P is almost at its daily resistance area at 3925 so an initial dip would fit quite well before another push up later.
Above the 6755 level then 6788 as mentioned for the double top, and just above R2 which is at 6777. Should the bulls break 6788 though then we will more than likely surpass 6800. That may well tally with the leg up on the S&P continuing towards the top of the 20d Raff channel at 3950. 6813 is R3, with 6852 above that where we have the 20d Raff channel.
For support, below the 6700 200ema level we have S1 at 6686, and then the key fib at 6663. 6645 would see another test of the 25ema on the daily chart and the bulls would certainly want to defend that.
For today though I am looking at a dip and rise to play out on FTSE, Dax and the S&P and watching the 6715, 14515 and 3892 levels as the main supports.
Good luck today.
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