The FTSE 100 index is falling for the third consecutive day as investors react to corporate earnings from top UK firms. The index is trading at £6,700, which is lower than this year’s high of £6,965.
What happened: The focus on the FTSE 100 has been on earnings. In the past few days, we have received relatively strong earnings from the leading mining companies like BHP, Rio Tinto, and Glencore. These companies benefited from the elevated demand from China that led to higher prices. Also, the FTSE has been supported by relatively higher oil prices.
Today, the company to watch will be Barclays, which published its results earlier. The company said that it was writing off about £4.8 billion of its debt. This pushed its pre-tax profit to £3.1 billion, down from £4.4 billion a year before. The company made more than £21.8 billion in income. At the same time, its investment and trading business helped to offset its lending business. The firm also said that it will resume paying dividends.
Other companies that are releasing their earnings today are Smith & Nephew, Hays, and Indivior, among others.
FTSE 100 technical outlook
The FTSE index has struggled this week even after the relatively strong mining earnings. The index is trading at £6,700. On the four-hour chart, the index has formed what seems to be like a bullish flag pattern. It also remains slightly above the 25-day and 15-day exponential moving averages.
Therefore, the index will likely break-out higher as bulls target the next resistance level at £6,787. If this happens, it will raise the possibility of the index rising to £7,000. However, a drop to £6,587 will invalidate this trend.
FTSE index chart