Image Source : Krish Capital Pty Ltd
Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.07% on 14 January 2025. Industrials, Financials & Basic Materials sector has witnessed a substantial growth. Moreover, Energy, HealthCare and Consumer Non-Cyclicals sector has faced a significant decline.
Macro Update: BP warned of a profit decline in Q4 2024 due to lower production, weak refining margins, and sluggish trading, reflecting CEO Murray Auchincloss's shift to prioritize profits over energy transition. Meanwhile, 16% of British companies reduced hiring in Q4, the highest since 2021, amid rising labor costs, with 75% of firms under price pressure. JD Sports downgraded its profit forecast after a 1.5% revenue decline in November and December, citing a volatile market, leading to a 12% drop in shares. In contrast, Persimmon forecasted 2024 earnings at the upper end of expectations, supported by improved sales and pricing, lifting its shares by 4.5%, despite cautious housing market sentiment over slow interest rate cuts.
Top Market Movers: Among top gainers on FTSE 100 index, Persimmon PLC (LSE: PSN) witnessed a rise of 5.41% followed by Taylor Wimpey PLC (LSE: TW.) which gained around 2.68%.
Commodity Update: The U.S. dollar remained near a two-year high on Tuesday as traders reduced expectations of rate cuts in 2025 following strong economic data. Investor concerns about the UK's fiscal health pressured the pound. With President-elect Donald Trump poised to return to office next week, market focus turned to his policies, which are expected to stimulate growth but could increase inflationary pressures. In commodities, gold rose 0.26% to $2,684.20, while silver dropped 0.20%. Copper gained 0.37%, reaching $9,135.50. Brent crude slipped 0.27%, closing at $80.69 amid increased demand from Chinese and Indian buyers due to tougher U.S. sanctions on Russian oil.
Our Stance: Negotiations in Qatar, involving U.S. President Joe Biden and envoys for President-elect Donald Trump, are moving toward a ceasefire and hostage release deal to end the Gaza war, with mediators presenting a final draft agreement. European stocks rebounded on easing bond yields, while the dollar held near two-year highs as traders reduced expectations of U.S. rate cuts in 2025, fueled by robust economic data and concerns over Britain's fiscal health. China stocks surged, with the Shanghai Composite up 2.5% and the CSI300 rising 2.6%, as regulators pledged support amid a market slump, while the Hong Kong Hang Seng Index gained 1.8% following tech-driven recovery. These developments highlight geopolitical tensions, economic uncertainties, and divergent market responses globally.
FTSE 100
The FTSE 100 closed at 8,224.19 on Monday, down by 0.29%, forming a bearish candlestick pattern, though it found solid support at 8,002.00. The index remains above its 21-period Simple Moving Average (SMA), indicating potential for short-term upward momentum. The 50-period SMA provides additional downside support, minimizing the risk of a sharp decline. With the Relative Strength Index (RSI) at 49.91, bullish sentiment persists. On the weekly chart, the FTSE 100 rose 0.30%, staying above the 50-period SMA at 8,130.76. Key support lies at 7,932, with resistance at 8,400. A breakout above 8,400 could signal stronger bullish momentum, while a drop below 8,020 may indicate further downside. Monitoring these levels is essential for predicting future price movements.

Data Source - EODHD/Others






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