Image Souce: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.65% on 22 November 2024. Real Estate, Utility & HealthCare sector demonstrated a substantial growth. Moreover, sectors such as Financials & Energy faced a significant decline. 

Macro Update:  British business output contracted for the first time in over a year, with the S&P Global Flash Composite PMI falling to 49.9 in November, reflecting the impact of tax hikes in the government’s budget on hiring and investment. Retail sales also declined sharply by 0.7% in October, signaling weakening consumer demand. Meanwhile, households face additional cost-of-living pressures with a 1.2% increase in the energy price cap in January, following a 10% rise in October, as inflation remains above the Bank of England's target. On a global scale, BP announced a $7 billion investment in Indonesia’s Papua region for a gas field and carbon capture project, set to unlock 3 trillion cubic feet of gas resources by 2028, marking a significant step in international energy development. 

Top Market Movers: Among top gainers on FTSE 100 index, Diploma PLC (LSE: DPLM) witnessed a rise of 4.11% followed by Spirax Group PLC (LSE: SPX) which gained around 3.23%. 

Commodity Update: The U.S. dollar remained near a 13-month high on Friday as investors weighed the Federal Reserve's future interest rate decisions, while European uncertainty kept the euro under pressure. Bitcoin approached the $100,000 mark, attracting investor attention. In commodities, gold rose 0.63% to $2,691.50 per ounce, silver gained 0.35% to $31.05, and copper edged up 0.12% to $9,043.50 per ton. Meanwhile, Brent crude climbed 0.20% to $74.37 per barrel after Russia launched a ballistic missile at Ukraine and hinted at an expanding conflict, raising concerns over potential disruptions in global oil supplies. 

Our Stance: Eurozone business activity saw a sharp decline in November, with the HCOB composite PMI dropping to 48.1, a 10-month low and well below the 50.0 growth threshold. This reflects significant struggles in the services sector and a worsening manufacturing recession, surpassing expectations of stability. The data underscores rising economic challenges in the Eurozone, raising concerns about demand and recovery efforts. U.S. equities continue to outperform global peers, fueled by optimism over President-elect Donald Trump’s economic agenda, including fiscal stimulus and deregulation. However, the sustainability of this rally depends on avoiding trade wars and managing fiscal deficits. The divergence between Eurozone weakness and U.S. market strength highlights regional economic contrasts. While U.S. markets offer potential for global investment, Eurozone challenges could weigh on broader economic sentiment, requiring close monitoring of fiscal policies and geopolitical risks. 

FTSE 100 

The FTSE 100 closed at 8,149.27, posting a modest gain of 0.79%, forming a bullish candlestick pattern that, along with increased trading volume, signals strong investor sentiment. The index surpassed and closed above its 21-period Simple Moving Average (SMA), now serving as immediate support, supporting the potential for further upside. The Relative Strength Index (RSI) at 49.38 shows a recovery from support levels, indicating a possible bullish trajectory with a forming bullish divergence. On the weekly chart, the 50-period SMA at around 8,032 provides key support, with the next support at 7,932. Immediate resistance lies at 8,400, and a breakout above this level could confirm a bullish reversal. However, if the FTSE 100 dips below 8,020, further declines could follow. Investors should monitor these critical levels closely, as they will determine whether the market consolidates or continues its upward movement. 

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!