FTSE 100 live outlook prediction analysis for 2nd October 2020
Fears the year could end without a Brexit trade deal set sterling on a rollercoaster ride yesterday. First the pound was down about 0.6pc against the dollar after the EU indicated it would start legal proceedings against the UK over Boris Johnson’s plan to breach terms of its Brexit divorce deal and break international law. Then sterling clawed back its losses, rising to be up 0.4pc against the dollar at $1.2978, after a Financial Times reporter tweeted that officials in London saw the chance of a deal having risen from 30pc to 70pc. However, it sank again after an EU official was reported as saying there were “no landing zones” yet in trade talks with Brussels.
Meanwhile, oil prices tanked more than 5pc as the rise in Covid-19 cases worldwide dampened the outlook for demand, and after a rise in Opec output last month, particularly from Libya and Iran.
The FTSE 100 closed up 0.2pc at 5,879.45.
In other Thursday news:
- Businesses should step up hiring and investment to boost their own prospects and that of the wider economy, the Bank of England’s Andy Haldane has urged. “The missing ingredient in the recovery both globally and locally in the UK has been spending by companies,” Mr Haldane said. Read more here.
- Boris Johnson has ceded control of the delayed Crossrail project to Sadiq Khan as talks with Westminster begin on a major bailout of the debt-ridden finances of the capital’s transport network. More here.
- US shares edged higher amid signs of tentative progress in Washington toward a fresh fiscal-stimulus package but came off their highs of the day amid concern there won’t be an accord. The S&P 500 pared its advance by more than half following a report that House leader Nancy Pelosi was sceptical about reaching a deal.
- Goldman Sachs is embarking on a plan to eliminate about 1pc of its workforce, or roughly 400 positions, Bloomberg reported.
Markets On Hold
Investors are expecting trading on the Tokyo Stock Exchange to resumeafter Thursday’s outage. Japanese equity futures dipped along with those in Australia, while markets in China and Hong Kong remain shut for a holiday. Earlier, U.S. shares rose as traders weighed the chances of a deal for a U.S. fiscal-stimulus package. The Nasdaq 100 reached the highest in almost a month as Amazon.com, Microsoft and Tesla rose. The S&P 500 Index’s advance was limited by declines in energy producers. Oil tumbled on concern the market may be oversupplied. Gold advanced, while Treasury yields dipped.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
U.S. equity futures slid with Asian stocks and the dollar climbed after President Donald Trump said he had tested positive for the coronavirus.
S&P 500 contracts had dipped earlier after the House of Representatives passed a $2.2 trillion Democrat-only fiscal stimulus package that Republicans reject.
Trump said that he and the First Lady tested positive for the coronavirus. They were tested after Hope Hicks, one of his closest aides, was positive for Covid-19.
Well, the news that Trump has Covid has put the cat amongst the pigeons to start with, as the S&P500 has dipped below its S3 for the moment, but has defended the 3310 support so far. If that holds then we may well see a bit of a climb today as markets retrace the fall on that news. The FTSE has dropped down to the 5800 level as I write this, and we have decent daily support slightly lower at 5772, with S3 at 5762. I think this area will hold if seen.
Should we break below S3 then the bottom of the Raff channels will come into play, with the 20 day at 5715, and then the 10 day at 5695. I am thinking that we may well
For the bulls, they are on the back foot today to start with, but if they can defend the 5770 area then we may well see a rise back towards the pivot at 5885 today. Seems a bit of a tall order at the moment with that news, but on the flip side, the House of Representatives passed the Democrats $2.2Tln Covid Aid Bill yesterday which will help.
So, let’s see if the buy the dippers see this as a buying opportunity as they surely will if the 3310 SPX level holds. A rise back towards the 2 hour resistance at 3390 would then play out well. Below 3310 and the bottom of the 10 day Raff is at 3250 which would be the next level of note.
Usual Friday caveat applies though and do be more cautious today. Watching that 5770 area for support though and I think a long here is worth a go.
I am also going to reset the Telegram groups over the weekend so will email the new links round. Good luck today, stay cautious as its a bit news/sentiment driven to start with. Have a good weekend!
Recommended Broker
IC Markets – offers market leading pricing and trading conditions by providing clients with True ECN Connectivity; this allows you to trade on institutional grade liquidity from the world’s leading investment banks, hedge funds and dark pool liquidity execution venues. Highly recommended!
Membership and Live Trading
If you would like more detailed analysis for FTSE 100, DAX, Gold and S&P, including the trades that I am looking to take myself, then please join my active members community.
What you get
- Daily Analysis pre market open (sent around 7am each day) for FTSE, DAX, Gold and S&P.
- Daily email pre market includes my trading plan for the day including ORDER levels, with stops and targets/limits
- Telegram live trading room and webinar group membership for discussion and realtime trade updates
Keep up to date with new content, free sign up below
[yikes-mailchimp form=”4″]