FTSE 100 live outlook prediction analysis for 4th December 2020
- Initial jobless claims at lowest level of the pandemic – but still hugely elevated
- FTSE 100 holds flat as European stocks dip
- Final PMI readings confirm second lockdown in England prompted private-sector slowdown
- Sainsbury’s follows Tesco in repaying business rates relief
Investors sent BT shares up after the communications regulator reaffirmed its support for upgrading the nation to gigabit-speed broadband. The jump left BT as one of London’s biggest blue-chip risers on a day of moderate gains for the FTSE 100, which outperformed as bourses across the continent registered narrow losses.
The index shrugged off a recovery in the pound, which hit a 12-month high on Brexit hopes and a sustained slide in the dollar’s strength.
Shares in Rolls-Royce, one of the pandemic’s biggest losers, surged 18.15p to 134.90p – the benchmark’s strongest gains – as airline Ryanair said it was placing an order for 75 Boeing 737 Max aircraft.
Pfizer Falls
Pfizer shares declined as much as 3.1% on Thursday following a report saying that supply-chain problems mean the drugmaker expects to ship only half the Covid-19 vaccine doses this year it had initially planned — down to 50 million from 100 million. In further downbeat news, Anthony Fauci slammed the U.K.’s drug regulator, saying that it rushed to clear the Covid-19 vaccine that the company is developing with Germany-based BioNTech. The U.K. watchdog said Wednesday it had approved the Pfizer vaccine, which means the shot will likely be used in Britain before the U.S. and the EU. Meanwhile, the co-founder of BioNTech joined the world’s 500 richest people after the approval.
Slowly Does It
OPEC+ agreed to ease oil-output cuts next year more gradually than previously planned, giving a fragile market more time to absorb the extra supply. A gradual tapering falls short of what had been widely expected before this week: a full three-month delay to the scheduled January output increase. Yet the compromise deal also avoids a breakdown of OPEC+ unity, which had become a growing risk after days of tense talks exposed exposed a new rift between core cartel members, the United Arab Emirates and Saudi Arabia. Oil rose on the news.[Bloomberg]
US & Asia Overnight from Bloomberg
Stocks traded mixed on Friday as investors mulled the recent strength in global equities and awaited key data from the U.S. labor market. Oil extended gains from a nine-month high after an OPEC+ deal.
S&P 500 futures ticked higher, while European contracts edged lower. Stocks gained in South Korea and Taiwan and fluctuated elsewhere. The Taiwan dollar hit its highest since 1997 and the won strengthened. Technology shares outperformed, with an MSCI gauge of the Asian sector climbing to a record after the Nasdaq Composite eked out a gain to close at its own all-time high.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Another Friday and a positive end of week session looks to be on the cards.The bulls have managed to hold the 6500 area overnight and we should be on for a rise towards the daily resistance at 6545 to start with, along with R2 just above that at 6556. We have had a small reaction off the fib level at 6523 overnight, but all the timeframes I look at are bullish currently. We may even see the top of the 10 day Raff channel again soon, currently at 6584.
That said, and as they say, don’t fall in love with the upside, the bears are just biding their time and waiting on the sidelines. Support today is showing at 6500 initially with the 30min coral here and also the 25ema, Just below this we have the daily pivot at 6474, a level that I am sure the bulls will want to defend if we got that low.
Below that support then the S1 level of 6436 also coincides with the fib and 200ema 30m so we should see a reaction here if we got that low. Even lower then the 6400 is the 2h coral green line, though we do also have the Hull MA at 6450. Worth keeping an eye on this 6450 area.
Either way, it still looks like buying the dips is the right move to be making at the moment as bearish reactions at the resistance level continue to get bought up.
The S&P has hovered around the 3675 resistance level overnight, but again failed to hold above it, despite a break out attempt. The dow is also failing to really pull above the 30k level. Might we get the Friday afternoon pump to cement some further upside? We have November US NFP employment data due today as well at 13:30 so watch out for that. The forecast is 469k versus 638k previously, with the unemployment rate forecasted to be 6.8% versus 6.9% previously.
As its Friday, it can pay to be a bit more cautious, lower stakes etc, but have a good session and a great weekend.
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