FTSE 100 live outlook prediction analysis for 21st October 2020
- FTSE 100 treads water Tuesday
- Negative rates may be needed to boost recovery, says Bank official
- Reckitt Benckiser ups revenue growth forecast
- Bellway banks on housing market rebound after Covid hammers profits
- US charges Google with violating monopoly law
- Co-op Bank finance chief Nick Slape takes top job
Overall, it was another flat day for European stocks, although the FTSE 100 and France’s Cac 40 notched up moderate gains.
U.S. stocks rose even as lawmakers remained unable to clinch a fresh aid package to bolster the economic recovery. The dollar weakened. The S&P 500 bounced back from Monday’s selloff as House Speaker Nancy Pelosi continued to negotiate with the White House on a deal near $2 trillion. The Republican-controlled Senate continued to signal it favored a bill about one-quarter that size. Both houses of Congress need to approve any legislation. Stocks got a boost when Federal Reserve Bank of Chicago President Charles Evans said he’s “somewhat optimistic” about a 2021 economic recovery.
Futures on the Nasdaq 100 turned lower after the cash market closed when both Netflix Inc. and Texas Instruments Inc. reported results. Tech shares mostly shook off the U.S. Justice Department’s decision to sue Google for allegedly abusing its power. Treasuries slumped, along with government bonds in Europe. Oil climbed toward $41 a barrel.
Landmark Case
The U.S. Justice Department sued Alphabet’s Google, accusing it of abusing its monopoly in search in the most significant antitrust action against an American company in more than two decades. Google, which controls about 90% of the online search market in the U.S., is engaged in a variety of anticompetitive practices to maintain and extend its monopoly, the government said in a complaint filed Tuesday in Washington. The case reveals new details about a secretive, multibillion-dollar deal between the internet giant and Apple, the world’s largest technology company.
Deal Sweetener
House Speaker Nancy Pelosi said Tuesday she’s hopeful for a U.S. stimulus agreement this week. That would be crucial to getting a bill passed before the Nov. 3 election, although Senate Republicans continue to be suspicious of a Pelosi-led deal. The administration’s offer is now $1.88 trillion, White House Chief of Staff Mark Meadows said on CNBC, while Pelosi is pushing for $2.2 trillion along with a number of requirements for how the money should be deployed.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Treasury yields rose and U.S. futures extended overnight gains amid optimism about progress on stimulus talks in Washington. The dollar retreated.
The benchmark 10-year yield climbed above 0.8% to a four-month high after House Speaker Nancy Pelosi said she remains hopeful of a deal before the election. S&P 500 contracts edged higher after the gauge bounced back from Monday’s selloff. Shares saw modest gains in Japan, Hong Kong and South Korea, and slipped in China. European futures pointed higher.
Elsewhere, tech shares mostly shook off the U.S. Justice Department’s decision to sue Google for allegedly abusing its power. Netflix Inc. plunged in late trading after it missed Wall Street estimates. The yuan climbed to the strongest since July 2018 and copper hit its highest in more than two years. Oil slipped.
It all depends on Brexit and stimulus at the moment with markets treading water a bit yesterday (consolidating as they call it!). The S&P has hung onto its recent gains, and we could still be on for a push higher on that, as the 3420 level has remained as support. A rise towards R1 at 3475 today would fit well. That could well pull the FTSE 100 up to the 5926 R1 level as well. The 2 hour S&P chart has now gone bullish with support at 3452 so I am looking for that level to hold today.
For the FTSE we have 2 hour support at 5871 so as long as that holds then the bulls still have a shot at 6000 for the moment. That said, we have decent looking support at 5891 from the daily pivot and also the green 30min coral here. However, should the bears push this lower and break the 2hr support then 5864 for S1 is just below. 5854 is the key fib level below that and I would like to see that hold, otherwise a test of the 20 day Raff channel bottom at 5795 is likely.
For the bulls, they will be looking to push above the 5934 level where we have the key fib level. If they did, then R2 at 5953, and R3 at 5988 are the next levels of note and just below the 6000 level. 6019 is the top of the 10 day channel and if the US were to get more bullish then a test of this level would all fit well.
We have got 2 hour support on the FTSE, Dax and SPX to start with today so will be interesting to see if the bulls can convert that into a rise. The markets are a bit directionless – being pulled around by stimulus (and Brexit for the UK) and thus meaning we need to stay nimble! Never easy thats for sure!
So, watching 5891, 5871 then 5854 for the main support levels, 5934 and 5953 as the main resistance levels for today. Keep an eye on the news flow as well as its a bit more sentiment driven at the moment. Good luck today.
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