The FTSE 100 is rising in the futures market as investors react to the strong earnings from Rio Tinto and other mining companies. The index is trading at 6,160 in the futures market while Rio Tinto share price is expected to rise. Other companies set to publish their earnings this week are banks like Barclays and NatWest.
FTSE 100 news: This week, several mining companies have published relatively weak corporate earnings. On Monday, BHP, the biggest miner in the world reported strong earnings followed by Glencore yesterday.
And today, Rio Tinto said that its profit rose by 22% in 2020. In response, the firm said that it will pay a special dividend. In total, it made a profit of more than $9.9 billion. Therefore, there is a likelihood that its share price will keep rising. It has already risen by more than 118% from its lowest level in 2020.
Rio Tinto Shares
FTSE 100 technical outlook
The FTSE 100 index has been on a strong rally. And this week, the index moved above the important 61.8% Fibonacci retracement level. It remains above the 25-day and 50-day moving averages and the June high of 6,535. Therefore, there is a likelihood that the index will continue rising as investors attempt to move to the important resistance at 6,922. This is the highest it has been since January 7. On the flip side, another move below 6,534 will invalidate this trend.
FTSE index chart