The FTSE 100 could move lower on the day after the Dow Jones closed 0.2% lower and Asian stocks were also bearish. The Dow was lower after the company behind the index announced a shake up of some constituents ahead of Apple’s stock split on August 31st.
The FTSE closed lower on Tuesday, weighed down by miners and a stronger sterling, whilst an unexpected drop in retail sales also kept bulls at bay. The UK saw a surprising fall in its monthly retail sales balance to -6 in August from July’s 15-month high of +4.
Some traders are happy to wait for the U.S. Federal Reserve’s Jackson Hole economic event tomorrow before taking any large positions. The annual two-day event features Fed officials and finance ministers from across the globe, who will meet to discuss economic policy. Some market volatility is possible around interviews and statements from the 100 plus delegates.
Ahead of that, we also have a speech later today from the Bank of England’s Chief Economist Andy Haldane. The BoE official has tried to paint a positive picture of the UK economy lately and analysts this week have also suggested that the UK could see a record bounce-back in GDP in Q3 after consumers flocked back to the high street.
FTSE 100 Technical Outlook
Yesterday’s bearish close in the FTSE 100 was a failure of the 6100 level and today’s lower open of -0.6% has seen an early test of the 6000 price.
This level will be key for the day ahead and will decide whether we head back to 6100 or test the lower support at 5870-5900.
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FTSE 100 Daily Chart
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