FTSE 100 Analysis | Trading Signals | Forecast | Prediction | FTSE 100 Outlook | Trading help
UK shares closed lower yesterday as worries about the impact of tougher Covid restrictions in England hit the travel sector and overshadowed a clutch of positive earnings reports.
The blue-chip FTSE 100 ended 0.2pc underwater, while the domestically focussed FTSE 250 index lost 0.4pc.
Asian stocks followed their U.S. peers lower Friday as traders weighed the economic threat of virus restrictions against optimism about the efficacy of vaccines.
Equity markets saw modest losses across the region. U.S. futures were little changed after benchmarks ended a three-day rally amid losses in the consumer discretionary and real estate sectors. Treasuries were steady, with a lackluster sale of 30-year bonds paring gains on Thursday. Oil traded below $71 per barrel and Bitcoin edged higher. The dollar held overnight gains.
Investors are mulling the cost to contain the omicron strain amid mounting concern it will crimp the economic rebound. A study has found omicron is 4.2 times more transmissible than the delta variant in its early stages.
Not So Grand
Evergrande has officially been labeled a defaulter for the first time, the latest milestone in a drama likely to end in a massive restructuring. Fitch cut Evergrande to restricted default over its failure to pay two coupons by the end of a grace period on Monday, which could trigger cross defaults on its $19.2 billion of dollar debt. Fitch also applied the same label to Kaisa. But don’t expect a government bailout: PBOC Governor Yi Gang called the matter a market event to be dealt with in a market-oriented way. China’s top leaders are set to convene this week to decide the economic agenda for 2022, and analysts are expecting the focus to shift to supporting growth from deleveraging and regulatory crackdowns.
FTSE 100 live outlook prediction analysis for 10th December 2021
Todays main event is the US inflation figures at 13:30, with expectations for them to be high. Forecasts have the core inflation rate at 4.9%, up from 4.6% previously, and the Inflation rate at 6.8%, above 6.2% previously. Watch for this data and the impact on the market this afternoon.
Yesterday the FTSE once again failed to get above the 7375 level and dropped off to 7300 which has broken overnight (just!). If the bears can continue the decline and we mimic the steady drop seen on the ASX200, then we may well be testing the daily support level at 7235 today. With the 25ema here on the daily, this will be the first test of that since the moving averages went bullish on Wednesday. As such, the bulls will be trying to defend that level and we could see that base later today/Monday before some more buying later next week.
Seasonally the back end of this week and early next is weaker, before resuming a bullish rise as we head towards the Christmas break. We may well see that play out quite well if the bulls defend that lower support level.
Initially 7300 is resistance to start with, and then the 7328 daily pivot above that. Should the bulls break above this then 7366 is the daily resistance though it seems a big ask for it to push that high today.
For the bears, initial support is 7275 with the key fib level here, and then that 7235 area as mentioned. Below this the 7188 is the next daily support.
Not too much more to say really, expecting a bit of a dip down today and probably testing that 7235 daily support. Have a good session today and enjoy the weekend.
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