FTSE 100 Hovers At Its 5-Month Highs on Positive Forex News from the UK
The FTSE 100 ended Friday’s trading flat despite positive data from the United Kingdom. The UK’s blue-chip stock index finished 2.3 points or 0.03% flat at 7,582.6. Its CFD chart shows that it traded within a 50-point range in Friday’s trading.
Gainers and Losers on FTSE 100
Carnival led gainers with a 6.82% profit. It was followed by Reckitt Benckinser in second at 3.53% and Scottish Mortgage at 2.52%.
On the other hand, NMC Healthcare LLC led losses as it was down 15.36% for the day. The hospital operator’s stock slid on accusations of financial mismanagement. Barclays and Lloyds Banking Group were also in the red by 2.70% and 2.49%, respectively.
Better-Than-Expected Data from the UK
On Friday, we saw an upward revision to the country’s third quarter GDP which may have helped the stock index hold on to its gains. It was initially reported that the economy grew by 0.3% in the months of July to September. However, the Office for National Statistics revised the reading to 0.4%. The current account for the third quarter also posted its smallest deficit in 12 years at 15.9 billion GBP. While it missed the market’s forecast for a -15.7 billion GBP deficit, the reading for the second quarter was positively revised from -25.2 billion GBP to -24.2 billion GBP.
On the weekly chart FTSE 100 CFDs, we can see that the stock index traded to its June 2019 highs. It also looks to have closed just below resistance at the falling trend line (from connecting the highs of May 20, 2018 and July 28, 2019). If there are enough buyers in this week’s trading, we could see a bullish close above this week’s high 7,606.5. This could indicate strong buying pressure in the market and we may soon see FTSE 100 re-test its July 28, 2019 highs at 7,729.7. On the other hand, if buyers cannot sustain gains above 7,560.0, a reversal candle could mean that the stock index may retrace some of its gains to its October to December highs at 7,428.1.