FTSE 100 live outlook prediction analysis for 2nd November 2020
London’s top listed companies marked their worst month since March as virus fears and the looming US election sparked a week-long stock market sell-off last week. Despite closing almost flat after choppy trading on Friday, the FTSE 100 chalked up a monthly slide of 4.9pc – the sharpest fall since the record-breaking rout in March. The blue-chip index fell every day in its worst week since June, knocking £72bn off its total value. The falls coincided with third-quarter results for several of Britain’s biggest companies, producing better than expected performances from heavyweights such as Royal Dutch Shell and Lloyds Banking Group.
Final Stretch
Democrat Joe Biden leads President Donald Trump in a series of polls released Sunday, remaining ahead nationally and in battleground U.S. states — though some races remain extremely close. The New York Times and Siena College showed Biden ahead in Pennsylvania, Florida, Arizona and Wisconsin, all key swing states that Trump carried in 2016. An ABC/Washington Post poll showed Trump narrowly ahead in Florida, 50%-48%. The same poll had Biden well ahead — 51%-44% — in Pennsylvania. As the candidates spend the final days of the race crisscrossing those key battleground states, over 93 million people have already cast their ballots, almost 68% of the 2016 total.
Market Open
Stocks will look to rebound from a tech-induced sell-off in Asia as traders brace for a crucial week that could set the tone for the remainder of the year, with the U.S. election and a Federal Reserve policy meeting. Equity futures in Japan and Australia ended Friday higher, indicating the Asia-Pacific region can start November on the front foot following two months of losses for global equities. The pound slipped as increased restrictions in England aimed at controlling the coronavirus overshadowed signs of progress on Brexit. Traders will later watch the release of data on Chinese manufacturing for any clues on the trajectory of the recovery there.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Asian stocks climbed in a volatile start to a crucial week spanning the U.S. election and a Federal Reserve policy meeting, events that could set the tone for financial markets for the rest of the year. Oil tumbled to a five-month low.
S&P 500 futures nudged up after erasing an earlier decline. The dollar ticked higher with Treasuries. Japan stocks outperformed. The moves at the beginning of November come after global equities posted two months of losses.
Concern that economic growth will be hampered by further lockdown measures in Europe dragged crude prices and commodity currencies lower. The pound slipped as increased restrictions in England aimed at controlling the coronavirus overshadowed signs of progress on Brexit trade talks.
The main event this week will be Tuesday’s U.S. election, with Democratic nominee Joe Biden leading President Donald Trump in polls. Virus developments are also front and center with the recent surge in U.S. cases showing signs of slowing over the weekend. Countries in Europe are restricting the movement of people in a bid to contain the spread of the pathogen.
I’m thinking we might have a slow one today as we are on the cusp of the US election and as such a slow drift up towards the 5630 resistance level looks like it might play out. It has recovered from the overnight low at the 5510 level, just below the daily support area of 5525, and also just above the fib level of 5502. The bulls will be keen to defend the pivot initially, which is at 5565, and we also have the 30min coral here but its red currently.
If the 5550 level holds then the bulls should manage a rise to 5600 or higher.
The S&P is following a remarkably similar pattern to the last election year in 2016 – September high and then drops until election. The next phase after that was the rally…… will it do the same again?
Be cautious today with the election looming.
For the bears, if they can break 5540 then a retest of the overnight low at 5510 will be likely. I think if the bears do start to gain control on a break of 5500 then we will be on for a slide down to 5400 where we have the bottom of the Raff channels for the moment.
For the bulls a break of 5630 is what they are aiming for as that opens up 5700 and higher.
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