The FTSE 100 index is little changed today as investors wait for the Bank of England (BOE) decision. It is trading at £7,050, which is slightly below the intraday high of £7,070.
What is happening: The FTSE index is in a tight range after the relatively strong UK services PMI data. According to Markit, the services PMI rose from 56.3 in March to 61.0 in Aoril. This pushed the composite PMI to 60.7, signalling that the UK economy is doing well.
Therefore, the market will be watching the latest BOE decision that will come out in the afternoon session. A hawkish statement will likely push the Footsie lower, and vice versa. The top companies to watch as during the rate decision are banks like NatWest, Barclays, and Lloyds Bank.
Top movers: The top mover in the FTSE 100 index is Next PLC whose shares rose by more than 3% after the impressive earnings. It is followed by Rolls-Royce, Shell, Fresnillo, and IAG. On the other hand, the top laggards are Admiral Group, Mondi, Polymetal, Croda, and the London Stock Exchange (LSE).
FTSE 100 index forecast
The FTSE 100 index is in a tight range today. On the daily chart, the index has moved above the important resistance at £6,963, which was the highest level on January 7. The index’s upward trend is also being supported by the 25-day moving average. It has also moved above the ascending triangle pattern.
Therefore, there is a possibility that the index will keep rising as bulls target the next key resistance level at £7,500. However, a drop below £6,8400 will invalidate this trend.
Please don’t consider this investment advice. Views expressed here are those of the writer and the writer and InvestingCube will not be held liable for any losses.