Image Souce: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.70% on 11 November 2024. HealthCare, Real Estate & Technology sector demonstrated a substantial growth.  

Macro Update:  British public-sector employers are set to increase pay faster than private-sector employers for the first time since 2020, following large public-sector pay raises approved by the Labour government and partially funded by higher employer taxes. A survey by the Chartered Institute of Personnel and Development showed public-sector pay expectations rose to 4% from 2.5% in the past quarter. In related news, Prime Minister Keir Starmer is scheduled to meet French President Emmanuel Macron on Monday to discuss support for Ukraine amidst concerns about U.S. backing following Donald Trump's re-election. Additionally, Britain's FTSE 100 fell to a three-month low on Friday, affected by a profit warning from homebuilder Vistry and weak stimulus news from China, marking its third consecutive weekly decline. 

Top Market Movers: Among top gainers on FTSE 100 index, Croda International PLC (LSE: CRDA) witnessed a rise of 5.08% followed by Rolls-Royce Holdings PLC (LSE: RR.) which gained around 3.18%. 

Commodity Update: The dollar traded cautiously on Monday as markets prepared for U.S. inflation data and a series of Federal Reserve speeches. The yuan was under pressure after China’s latest stimulus package failed to impress. Weekend data showed China’s consumer price growth slowed to a four-month low in October, while producer prices deepened deflation. In commodities, gold fell 0.64% to $2,675.80/oz, silver dropped 0.46% to $31.30, and copper gained 0.22% to $9,661.50/ton. Crude oil declined 0.2% to $73.72 a barrel, with China's fiscal measures falling short and a Gulf of Mexico hurricane having minimal impact on U.S. production. 

Our Stance: Global markets are reacting to political and economic developments, with Hong Kong stocks declining due to underwhelming stimulus from Beijing, while Bitcoin surged to a new high following Donald Trump’s U.S. re-election, raising hopes for favorable crypto regulation. The U.S. dollar remains near a four-month peak as markets await U.S. inflation data and Federal Reserve statements, while Eurozone bond yields fell amid political uncertainty in Germany following the collapse of its coalition government. These events highlight the impact of political shifts and economic signals on global investor sentiment. 

FTSE 100 

The FTSE 100 closed at 8,072.39, down 0.84%, as a bearish candlestick pattern and increased trading volumes raised investor concerns. The index is currently trading below the 21-period Simple Moving Average (SMA), which is acting as resistance. The Relative Strength Index (RSI) stands at 34.90, suggesting potential for further downside momentum. On the weekly chart, the 50-period SMA is providing solid support near 8,020, offering a potential floor for the index. If the FTSE 100 holds above this level, there could be a positive outlook. Key technical levels to monitor include 8,400 as resistance and 8,020 as support. A breakout above 8,400 could signal a reversal and upward movement, while a drop below 8,100 might indicate deeper declines. These levels will be critical in determining the index's near-term direction and overall trend. 

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