June 2020

The FTSE 100 index is among the best-performing indices in Europe today. Up by more than 1%, it has outperformed the DAX index, CAC 40, and Stoxx 50, which have risen by 0.66%, 0.90%, and 0.86%. Let us look at the key movers of the FTSE index. Rentokil Initial receives an upgrade Rentokil share price is up by more than 3.62%, becoming the best-performing stocks in the index. It is reacting to a recent upgrade by analysts at JP Morgan, who raised its target to overweight. They expect the share price to rise to 560p from the current 517p. JP Morgan analysts are not the only ones bullish on the pest control company. Recently, those at Goldman Sachs initiated coverage of the firm with a buy rating. Similarly, those at Credit Suisse, RBC Capital Markets, and Jefferies Fresnillo share price jumps on higher metal prices Fresnillo is the second best performer in the FTSE 100. The Mexican metal company has been boosted by the recent rally in gold and silver prices. For starters, the company is among the oldest metal mining companies in the world. It now operates seven mines and three development projects mostly in Mexico. With metals prices rising, investors believe that the firm will continue doing well. Gold price is now at $1775 while silver price is up by 0.37% to $17.9. Banks in FTSE 100 fall Banks in the FTSE 100 index are falling today as investors react to the stress test results released by the Federal Reserve yesterday. In the test results, the Federal Reserve warned that banks could be at risk if the current crisis extends for longer. As a result, it directed them to halt any share buybacks and dividends until the crisis eased. Morgan Stanley and Goldman Sachs were identified as the riskiest banks. Still, this announcement was symbolic since the banks had halted the payouts voluntarily in March. Lloyds share price is down by 0.20% while RBS is down by 0.55%. Tesco share price drop Meanwhile, Tesco share price is down sharply after the company released mixed earnings. While the company’s overall revenue and online sales improved, it suffered from increased costs and losses in its banking division. The firm’s share price is at 226p. Other movers in FTSE 100 The worst-performer in the FTSR 100 is Next Plc whose shares have dropped by 1.50%. It is followed by JD Sports, Berkeley Group, Persimmon, British Land, and Sainsbury. On the other hand, the best performers in the FTSE 100 index are IAG, Burberry, Smiths, and Mondi. Download our Q2 Market Global Market Outlook FTSE 100 technical analysis The daily chart below shows that the FTSE 100 index is trading at the 50% Fibonacci retracement level. (This retracement connects the highest and lowest points this year). The price also is in an ascending trend as evidenced by the red trendline which connects the lowest levels on May 14, June 15, and June 25. Also, it is above the 100-day and 50-day exponential moving averages. This implies that the index will continue rising as bulls target the next resistance at £6357, which is the highest level this week. On the other hand, a FTSE 100 move below £5921 will invalidate this trend. This price is the lowest level on June 15 and is slightly above the 38.2% retracement.