FTSE 100 outlook prediction analysis for 6th December 2019
The FTSE 250 ended the day with minor gains, nonplussed by a continued rise in the pound that put pressure on its blue-chip sibling. The FTSE 100 spent much of the day trying to stay above water, before sinking into the red in the afternoon, after the rise and dip pattern played out. Unfortunately the bulls couldn’t quite manage to get it as high at the 7245 resistance level before a drop down to retest the 7130 level from 7200. We have the non farm payrolls news out today, and the 2 hour chart remains bullish for the moment, with support at 7115.
Close Relations
Chinese officials are in “close contact” with U.S. counterparts on trade negotiations, Ministry of Commerce spokesman Gao Feng said, while reiterating that tariffs should be reduced proportionately as part of a phase-one accord. Gao declined to give further details on the talks at a regular briefing in Beijing on Thursday. The world’s two largest economies are trying to reach a truce in a 20-month-long trade war that’s led to the largest volley of tariffs since the 1930s — hitting some $500 billion in shipments going in both directions. The U.S. has pledged to slap tariffs on more Chinese imports if a deal isn’t struck by Dec. 15, and many economists are pinning forecasts for a global economic rebound next year on a cease-fire that avoids such an escalation. Meanwhile, if you’re confused about the hot and cold rhetoric surrounding talk progess, here’s help decoding Trump’s trade brain, bluffs and bluster.
Markets
Asian stocks looked set for a muted open as traders awaited news on the U.S. job market and a looming scheduled American tariff hike on Chinese goods. Bonds and the dollar fell. Futures were little changed in Japan, Australia and Hong Kong. U.S. shares closed slightly higher Thursday. Treasury yields climbed after data showed jobless claims slumped to a seven-month low, signaling resilience in the labor market ahead of Friday’s employment report. Oil slipped after a volatile session as OPEC failed to impress traders with what appeared to be a cosmetic revision to output quotas.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Its NFP Friday so we may well get some odd moves as we approach the news at 13:30. The forecast is that 183k job were added last month. This figure is the monthly change in US employment excluding the farming sector. Non-farm payrolls is the most closely watched indicator in the Employment Situation, considered the most comprehensive measure of job creation in the US.
The bulls defended the 7130 level again yesterday and we have had a small 30 point climb overnight. If the bulls can defend the initial support at 7150 then we should see a rise to the 7181 2hr resistance line. Above this then I am looking at the 7200 level which was yesterday’s high and also the key fib resistance for today, with 7214 above this with the 200ema here. The S&P defended the drop yesterday and is now back into its resistance zone between 3125 and 3135 – if this latter level is seen then with R2 and the key fib here we may well see some profit taking/bearishness again at this point. The bears need to drop it through the 3100 level as that could open up a drop to 3070 or lower again.
On the FTSE, if the bears were to break below 7130 then the 7100 area has a few supports as you can see form the list, and then the 7026 level below that. With the daily resistance at the 7284 level I wouldn’t be surprised if we get a rise to test that 25ema at some point. The slight spanner in the works for a FTSE rise is the fact that cable continues to rise ahead of the election. With the forecasted Tory majority we are seeing buy the rumour on that…. will we see the sell the news if the result is not as the polls suggest?
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US Unemployment Rate Nov 3.5% (est 3.6%; prev 3.6%)
US Non-Farm Payrolls Nov 266K (est 180K; prevR 156K; prev 128K)