17th April 2019
The FTSE 100 also hit a six-month high as data showed that employment reached a new record, defying concerns that Brexit uncertainty had dampened the labour market. Employment figures from the ONS showed that 32.7m were in work in the three months to February, a rise of 179,000 on the previous period.
The confirmation of a Brexit delay last week and positive signs of progress with US-China trade talks have also supported the FTSE 100. London’s blue-chip index ended up 12.90 points at 7,469.92, its highest close since October.
The more domestically focused FTSE 250 index closed up 116.29 points at 19,923.38.
Sterling, which has been trading around the $1.31 level since the start of March, touched a day low of $1.3043 against the dollar after claims that Brexit talks between Theresa May and Labour leader Jeremy Corbyn had stalled. A report in The Guardian said that talks had staggered due to May’s desire for post-Brexit deregulation including pursuing a US trade deal. The Labour Party denied the claim, saying that talks would continue into next week.
Bank of America Corp. said the interest-rate boost that lifted first-quarter earnings is likely to fade over the rest of 2019. Net interest income will probably increase 3 percent for the year, down from 6 percent in 2018 and 5 percent in the first quarter, Chief Financial Officer Paul Donofrio said in a call with investors Tuesday. That may mean slowing growth for a consumer unit that drove profit to a record in the first three months of the year.
Stocks Rise
Asian stocks opened mixed after the benchmark U.S. equity index traded in the green. The S&P 500 rose in its fourth advance in five sessions, helped by gains in BlackRock Inc. and Citigroup Inc. The Nasdaq 100 Index briefly touched its record high, while the Russell 2000 Index of small caps rose for the first time this week. REITs plummeted as yields rose and Scotiabank analysts warned of occupancy risks. UnitedHealth Group Inc. fell on renewed concern that future health-care policy will harm its business, while Johnson & Johnson advanced after strong earnings. The dollar edged higher.
FTSE 100 Trading Signals, Forecast and Prediction
For today I am thinking that we may well see the highs of yesterday again at the 7485 level, and we also have a cam break out and fib level at 7495. Ergo this area is worth a short if seen. The bears had a go yesterday at the 7575 level, but the second test of this resistance area yesterday didn’t get the strongest of reactions. Therefore the bulls are still in control for the moment. It’s possible that we get a rise to the major resistance at 7532 where we have R3 also for today, and a level that looks like it will be tested at some point soon.
If we do get that high then I am expecting the bears to appear there and we should get a drop back down towards the 7415 and then the more major support at the 7384 level. If the bulls fail to break above the 7495 today then we should see a drop back towards 7444.
The 7444 levels looks like it will be decent support initially, with the 200ema here and also the cam break out. As such, if the bears were to break below this level then we should see drop to the daily support mentioned at 7415. The Asian markets were mixed today, as was the ASX, and I think that we will probably be the same. There are still Brexit rumblings in the distance, and the S&P still looks like it wants to head up to the 2930 area, which would bring the others up with it to a certain extent.
So for today then, fairly simple plan as we head towards the long weekend, looking at 7485/7495 as resistance, with 7532 above that. Support wise I am watching 7444, 7415 and then 7385 area.
With a shortened trading week this week we may well see some profit taking ahead of the Easter weekend, and thus the rally may falter a bit as we head towards the close on Thursday.
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