Image Souce: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went down around 0.09% on 28 October 2024. Energy, HealthCare & Financials sector demonstrated a substantial decline. Moreover, sectors such as Consumer Cyclicals, Technology & Real Estate sector faced a significant growth.

Macro Update:  In October, British business confidence hit a four-month low amid concerns over potential tax increases in the upcoming budget from the new government. Lloyds Bank's business barometer showed a slight decline, although companies remained more positive about their own prospects than the broader economy. Finance Minister Rachel Reeves highlighted the need for a pragmatic approach to trade with China to boost exports while protecting national security. At the upcoming budget presentation, Reeves faces the challenge of balancing fiscal responsibility with economic stimulus to avoid market instability, recalling past turbulence under former Prime Minister Liz Truss following an ill-fated mini budget.

Top Market Movers: Among top gainers on FTSE 100 index, EasyJet PLC (LSE: EZJ) witnessed a rise of 3.01% followed by Halma PLC (LSE: HLMA) which gained around 1.66%.

Commodity Update: On Monday, currency markets remained steady, with the dollar poised for its largest monthly gain in 2.5 years, driven by strong U.S. economic indicators and speculation around a potential Donald Trump presidency boosting U.S. yields. In commodities, gold fell 0.31% to $2,746.20 per ounce, silver decreased 0.60% to $33.57, and copper slipped 0.15% to $9,558.00 per ton. Brent crude futures dropped 4.1% to $72.97 a barrel as concerns over Middle East tensions eased following a less severe Israeli strike on Iran. Investors are now focused on upcoming U.S. GDP data and developments in the election.

Our Stance: Oil prices dropped sharply following Israel's recent airstrikes on Iranian military targets, as the strikes specifically avoided Iranian oil and nuclear facilities. Meanwhile, Eurozone bond yields, including Germany's 10-year yield, rose in line with U.S. Treasury yields. The increase reflects expectations of stronger economic data and a potentially more hawkish stance from the Federal Reserve. Upcoming U.S. and Eurozone economic data, combined with China's PMI figures, are likely to further influence demand outlooks and investor sentiment. These dynamics suggest that while immediate fears over Middle Eastern supply disruptions have softened, the market is poised.

FTSE 100

The FTSE index closed at 8,248.84, reflecting a modest loss of 0.25%. The emergence of a bearish candlestick pattern, alongside increased trading volume, suggests a slight unease among investors. The index started the day strong at 8,256.25 but has since been hovering near the 21-period Simple Moving Average (SMA), which is currently acting as a resistance level. On the weekly chart, the 50-period SMA indicates a generally positive long-term outlook. The Relative Strength Index (RSI) is at 45.60, indicating slightly bearish momentum. Recently, the index approached the critical 8,400 resistance level, and a successful breakout above this could enhance market sentiment. Conversely, the 8,100 level remains a strong support. Given the index's tight trading range, any breakout could significantly influence the prevailing trend.

You Are a Few Steps Away From Gaining Smart Market Insights

Sign up/Login Now and Gain Access to Exciting Opportunities from Investor and Resource Space!