Image Source : Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, trading flat around 0.05% on 31 December 2024. Sectors such as Industrials, Consumer Non- Cyclicals & Utilities has witnessed a substantial decrease. 

Macro Update:  London's FTSE 100 ended its three-session winning streak on Monday, slipping 0.4%, as investors booked profits ahead of the new year following its best weekly performance this month. Precious metal miners led the sectoral declines, falling 2% to their lowest levels in over three months as gold prices retreated. Personal goods followed with a 1.1% drop. Meanwhile, Shell shut down an oil processing unit at its Pulau Bukom facility in Singapore to investigate a suspected leak, which reportedly resulted in a few tonnes of refined oil products spilling along with cooling water discharge used in the refining process. The Pulau Bukom site is Shell's only energy and chemicals park in Asia. In a separate development, reports indicate that U.S. President-elect Donald Trump may become the first modern politician to be hosted for two state visits by the British royal family, with Downing Street and the Foreign Office preparing an invitation for his return to the White House, though detailed discussions have not yet occurred. 

Top Market Movers: Among top gainers on FTSE 100 index, ENDEAVOUR MINING PLC (LSE: EDV) witnessed a rise of 1.87% followed by ST. JAMES'S PLACE PLC (LSE: STJ) which gained around 0.51%. 

Commodity Update: The U.S. dollar edged lower on Monday as bond yields declined, though it stayed close to recent highs. The 10-year Treasury yield, which hit a seven-month peak last week, eased to 4.599%. Rising yields have supported the dollar’s recent strength. In commodities, gold edged up 0.01% to $2,618.40, while silver slipped 0.29% to $29.317, and copper declined 0.13% to $8,929.50. Brent crude rose 0.50% to $74.36 per barrel. Oil prices rose Tuesday, boosted by growth in China’s December manufacturing, but remain set for a second yearly decline amid demand concerns in key consuming nations. 

Our Stance: In China, the CSI 300 Index, which tracks the top 300 stocks on the Shanghai and Shenzhen exchanges, achieved a 15.9% gain in 2024, breaking a three-year losing streak. This rebound suggests improved investor sentiment, possibly due to government stimulus measures aimed at economic recovery. The increase in the U.S. repo rate underscores the importance of monitoring short-term funding markets, especially during periods of seasonal liquidity constraints. While such fluctuations are typical, sustained elevations could signal underlying stress in financial markets, warranting attention from policymakers and investors. China's stock market recovery, as evidenced by the CSI 300's performance, reflects the effectiveness of recent policy interventions to bolster economic growth. However, challenges remain, and the sustainability of this uptrend will depend on continued economic reforms and global economic conditions. 

FTSE 100 

The FTSE 100 Index exhibited a range-bound movement throughout 2024, with key support near 8000 and resistance around 8400. The index peaked in April and June, while notable declines occurred in August and October, recovering slightly to trade near 8125. The RSI currently stands at 40.8, indicating bearish momentum without reaching oversold territory, though it briefly dipped below 30 in August, signaling oversold conditions followed by a rebound. Volatility was evident in early 2024 and mid-year, with weakening momentum toward year-end. A breakout above 8400 or below 8000 could define the next trend, while RSI movements suggest close monitoring for potential shifts in market sentiment. 

Data Source - EODHD/Others 

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