Image Souce: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.25% on 11 December 2024. Basic Materials, Utilities, & Industrials sector faced a significant decline. 

Macro Update:  The Bank of England is expected to maintain its interest rate at 4.75% on December 19, moving cautiously compared to other central banks amidst persistent domestic inflation concerns, partly influenced by new tax and spending plans. Marks & Spencer reported a 10.6% year-on-year growth in grocery sales for the 12 weeks to November 30, positioning it as the second fastest-growing UK grocer after Lidl. Sterling strengthened against the euro, nearing a 2.5-year high, driven by expectations of European Central Bank rate cuts, while the BoE forecasts four rate reductions in 2025. Additionally, Equinor, BP, and TotalEnergies approved Britain's first carbon capture projects, set to store 4 million tonnes of CO2 annually in northern England. 

Top Market Movers: Among top gainers on FTSE 100 index, Lloyds Banking Group PLC (LSE: LLOY) witnessed a rise of 4.65% followed by Endeavour Mining PLC (LSE: EDV) which gained around 2.82%. 

Commodity Update: The U.S. dollar reached a two-week high against the yen on Wednesday, driven by anticipation of U.S. inflation data that could signal the pace of future Federal Reserve interest rate cuts. In commodities, gold climbed 0.71% to $2,738 per ounce, silver rose 0.20% to $32.81 per ounce, and copper gained 0.64%, reaching $9,300 per ton. Brent crude increased by 0.40%, settling at $72.47 per barrel. The rise in oil prices came amid optimism over stimulus measures in China, the world's largest importer, while traders awaited further insights into the U.S. economy and oil inventories. 

Our Stance: China is reportedly considering weakening the yuan in 2025 to counter the anticipated U.S. tariffs under Donald Trump's potential administration, including a 10% universal import tariff and a 60% tariff on Chinese imports. This news, coupled with anticipation of U.S. inflation data, strengthened the dollar against the euro and the pound, with the euro down to $1.0508 and the pound at $1.2752. Oil prices rose modestly as markets reacted to Beijing’s plans for monetary easing to boost economic growth, with Brent crude reaching $72.43 per barrel and WTI at $68.83 per barrel. This scenario highlights escalating trade tensions and China's need for economic resilience, alongside global markets closely watching U.S. economic indicators for broader trends. 

FTSE 100 

The FTSE 100 closed at 8,280.36, down 0.86%, forming a bearish candlestick pattern, though investor sentiment remains generally positive. The index is trading above both the 21-period and 50-period Simple Moving Averages (SMAs), which provide key support levels, suggesting potential for further gains. The Relative Strength Index (RSI) is at 53.13, indicating sustained bullish momentum and the likelihood of the uptrend continuing. On the weekly chart, the index closed at 8,308.61, up 0.21%, above the 50-period SMA at 8,047.08, with support at 7,932. Immediate resistance is at 8,400, with a breakout above this level signalling a bullish reversal. A drop below 8,020 could signal further downside risk. Investors should watch these support and resistance levels for signs of consolidation or continued upside momentum. 

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!