The FTSE 100 is pointing to a higher open as global stocks receive a Biden boost. Investors hope that the new president will provide more stimulus, which could have an impact on Footsie stocks. It is trading at £6,766, which is slightly higher than this week’s low of £6,700.
What’s happening: After rising slightly yesterday, the FTSE 100 will rise today as traders focus on the new Biden administration. The incoming president has promised to deliver more stimulus faster in the bid to support growth. This will benefit many UK companies that do business in the US. It will also improve sentiment.
Today, focus will be on Entain, the betting company that has been under pressure in recent days. The company, which was previously known as GVC Holdings, will deliver its trading update, two days after MGM abandoned its takeover.
Investors will want to know how the company plans to move on and whether other larger companies have expressed interest. Entain share price rose by more than 2% yesterday but is still 15% lower today.
Entain share price chart
Other FTSE 100 and FTSE 250 companies that will deliver their trading statements today are AJ Bell, Sage Group, and Close Brothers, among others.
FTSE 100 technical outlook
The FTSE 100 index is trading at £6,766, which is still below the YTD low of £6,950. On the daily chart, this price is a few points above the 15-day and 25-day WMAs. It is also slightly above the 61.8% Fibonacci retracement level while the Relative Strength Index (RSI) has continued to rise. Therefore, the index will likely continue rising as bulls target the next resistance level at £7,000.
FTSE index technical chart