FTSE 100 Analysis | Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
- FTSE 100 inched higher; Pound slumps against dollar after PMI miss
Ofgem has warned that the energy price cap will surge to £2,800 in October, piling even more pressure on already-strained household budgets. The energy regulator said it expects the cap to rise 42pc from its current level of £1,971. That’s after a 54pc increase in April and up from £1,277 in October 2021.
Stocks in Asia and futures climbed Wednesday and Treasury yields stabilized after a sharp retreat as markets assessed the outlook for Federal Reserve monetary tightening. The dollar gained.
An MSCI Inc. gauge of Asia-Pacific shares rose with most markets modestly in the green. US futures were higher after stocks fell overnight, with the Nasdaq 100 down more than 2% as Snap Inc.’s profit warning pummeled companies that rely on digital advertising.
In China, the country’s strict Covid policy is outweighing broad measures to support growth and keeping investors wary. The nation’s central bank and banking regulator urged lenders to boost loans in the latest effort to shore up the battered economy.
Treasuries steadied after a flight to havens sent yields lower, while traders dialed back the expected pace of Federal Reserve hikes. Money-market traders priced in about 135 basis points of rate increases over the central bank’s next three policy meetings, down from about 141 basis points at Monday’s close.
New Zealand’s central bank raised interest rates by half a percentage point for a second straight meeting and forecast more aggressive hikes to come to tame inflation.
For Biden’s Benefit?
North Korea fired at least three suspected ballistic missiles this morning, South Korea said, as U.S. President Joe Biden wrapped up a visit to Seoul and Japan, where he discussed the security threat posed by Kim Jong Un’s regime. North Korea has been firing missiles at a record pace this year. Over the past few months, it has tested a variety of missiles designed to evade US-operated interceptors and increase the threat of a credible nuclear strike against the U.S. and its allies in Asia.
Edging Closer
Russia will get pushed closer to a potential default after the US Treasury Department said it will let a key sanctions waiver benefitting American investors expire. US banks and individuals will be barred from accepting bond payments from Russia’s government after 12:01 a.m. New York time on Wednesday, when a license that has so far allowed the cash to flow ends. Meanwhile, in a bleak assessment about the potential for war in Ukraine to trigger a far bigger conflict, billionaire George Soros warned the World Economic Forum in Davos that “civilization may not survive.”
FTSE 100 live outlook prediction analysis for 25th May 2022
A decent day yesterday for the trade plan, with both the FTSE100 orders taking and making profits.
For today it looks like a dip and rise sort of day, with the 7480 to 7500 area being decent support to start with. As I started this email we were at the 7555 resistance level that we have been watching for a while, and have now dropped off that a bit. Above that then the 7620 level is the next key one to watch as well. That is just above the R2 level for today at 7608 so could well see a bearish reaction in this area.
The ASX200 had a decently bullish performance and we may well see the same. Prior to that daily level then we also have the 7568 level for R1, though if the bulls manage to break 7557 then they most likely will pop through this.
Support initially at 7497 with the daily pivot here, and then 7485 for the Hull MA on the 2h which we haven’t tested since it went bullish on Friday. A dip down to test that therefore makes sense. We do still have the weeks opening gap at 7405 though I don’t think we will get that low today, especially as the 2h coral is now also green and has 7450 as support as well.
The daily chart has also gone bullish again with the 25ema at 7445 to lend further weight to this level. I don’t think we will dip that low but if we did then a long here is worth a go.
S&P500
Again, a dip and rise may well play out with the 3934 level looking like decent support and could be the jumping off point for a rise to test the 4023 resistance level. The bulls will be keen to recapture the 4000 level before too long, as that could temper the pessimistic news headlines. The 2h chart remains bullish and the 3920 2h coral could well change to green shortly if the bulls can keep the price above that level. Below 3933 then 3902 is S1 and just below the key fib of 3912. 3992 is R1 and the bulls will be keen to break above that.
Dax40
And again, a dip and rise to test the 13915 key fib support initially. If that holds then a rise back above 14000 is likely, though this one does look the most bearish of the 3 with a bearish 2h chart. 14050 resistance on that the bulls will be keen to break above. If so then a test of the key fib at the 14122 level could play out. Below the 13915 then 13841 and 13800 are the next levels to watch.
Good luck today.
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