ftse 100

FTSE 100 Approaches 6,000, Rolls Royce Shine – UK Services PMI Disappoint

FTSE 100 continues on positive foot amid speculation for one more stimulus package and better than expected economic data from Europe and China. Optimism around the coronavirus vaccine also helps risky assets, pushing S&P 500 and Nasdaq to new record highs. FTSE 100 is also getting a hand by a weaker British pound as the GBPUSD correction continues down to 1.33 mark. 

UK Markit Services PMI Below Forecasts

The UK Markit Services PMI dropped to 58.8 below the expectations of 60.1 in August. Earlier on the week, the Manufacturing PMI reported in at 55.2 in August the highest reading since February; the July reading was at 53.3. Yesterday, the Nationwide Housing Prices came in at 2% in August topping the forecasts of 0.5%, the yearly reading for Nationwide Housing Prices non-seasonally adjusted registered in at 3.7% above the estimates of 2%. 

Rolls Royce 5.56% Higher

Lloyds share price is 2.78% higher at 27.75, while Melrose Industries is 10.25% higher at 110.75 after the company announced plans for job cuts at its Aerospace sector as the company reported a loss of £560 million in the first half. Rolls Royce Holdings Plc is 5.56% higher at 229.50 boosted by weaker British Pound. 

FTSE 100 Daily Technical Analysis

FTSE 100 is 0.89% higher at 5,993 as the rebound from the three-month lows hit earlier on the week continues. FTSE 100 underperform it’s main European and USA peers. 

Bulls show some signs of strength but to take control need to break above 6,071 the 100-day moving average. That move would attract more buyers and might challenge the 50-day moving average at 6,116.

The attention is to lower levels, and the first support stands at 5,941 the daily low. If the bears break that level, then the next support is at 5,860 the low from yesterday’s trading session, which guards the three-month lows at 5,826. 

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FTSE 100 Daily Chart

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