London Markets down as attention back on Trump and China:

Image Souce: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.91% on 08 November 2024. HealthCare, Real Estate & Technology sector demonstrated a substantial growth. While, Basic Materials, Financials & Consumer-Cyclicals sector has faced a significant decline.

Macro Update:  Stock prices in London were lower on Friday afternoon as further economic stimulus from China failed to have a significant impact on market sentiment. Despite China’s announcement that lawmakers had approved an increase in the local government debt ceiling by USD 840 billion to support its struggling economy, the measures did not seem to provide the expected boost. According to AJ Bell’s Russ Mould, the market remains cautious, with concerns over the potential economic risks posed by a second Trump presidency overshadowing China's efforts to revive its economy. Investors are now questioning whether Beijing will be prompted to introduce more aggressive measures to stimulate growth.

Top Market Movers: Among top gainers on FTSE 100 index, International Consolidated Airlines Group SA (LSE: IAG) witnessed a rise of 6.49% followed by EasyJet PLC (LSE: EZJ) which gained around 1.83%.

Commodity Update: The dollar paused on Friday, poised for a slight weekly gain as markets assessed the potential economic impact of Donald Trump's possible return to the White House. Investors also eyed Beijing's conclusion of its five-day NPC meeting, expecting further details on China's stimulus measures, which could support the yuan and Antipodean currencies. Commodities showed mixed performance: gold dipped 0.01% to $2,605.70/oz, silver rose 0.12% to $31.90, and copper fell 0.42% to $9,645.50/ton. Crude oil slipped 0.3% to $75.44 a barrel, though was set for a positive weekly outcome due to OPEC+'s delayed production hikes and U.S. supply concerns.

Our Stance: The Federal Reserve's recent rate cut, following the Bank of England’s own reduction, had little market impact as attention shifted to broader geopolitical concerns. The FTSE 100 was down 0.9%, while the FTSE 250 fell by 0.7%, and the AIM All-Share index dropped 0.4%. This cautious market sentiment reflects uncertainty around both China’s economic recovery and the potential implications of Donald Trump returning to the White House, which has left investors focused on these risks rather than the usual market drivers such as central bank policy changes.

FTSE 100

The FTSE 100 closed at 8,140.74, down 0.32%, with a bearish candlestick pattern raising concerns among investors as trading volumes increased. The index remains below the 21-period Simple Moving Average (SMA), which is acting as resistance. The Relative Strength Index (RSI) is at 40.17, indicating potential for further bearish momentum. On the weekly chart, the 50-period SMA is providing solid support, suggesting a positive outlook if the index remains above this level. Key levels to watch are 8,400 (resistance) and 8,100 (support). A breakout above 8,400 could signal upside, while a drop below 8,100 may lead to deeper declines. These levels are critical for determining the near-term trend.