FTSE 100 Propped Up by BP and HSBC Earnings

FTSE 100 is on a consolidation pattern as investors monitor this week’s earnings reports. On Tuesday, HSBC beat analysts’ estimates of $3.35 billion by reporting $5.78 billion as its Q1’21 profits before taxes. The figure is also higher than the $3.21 billion it recorded in Q1’20. Subsequently, its shares rose by 1.7% to earn a slot in FTSE 100 best performers’ list.

BP has also recorded better-than-expected results due to optimism on global oil demand and rising commodity prices. Its net profit for 2021’s first quarter was at $2.6 billion compared to the predicted $1.4 billion and $791 million in Q1’20. Subsequently, its share price has risen by 2%. Due to the interconnection between global equities, US earnings reports and the Fed interest rate decision will also impact FTSE 100.   

Technical Outlook

FTSE 100 is on a consolidation pattern for the second consecutive session. On Tuesday, it was up by 0.12% at £6,963.2. However, it remains above the trendline highlighted in green. On a 2-hour chart, the index is above the 25 and 50-day exponential moving averages.

As long as FTSE 100 remains above the trendline, the bullish outlook remains. If more companies record better-than-expected earnings, it is likely to rise as the bulls target the psychological £7,000. On the flip side, a move below the trendline will have the support level lower at £6,920.

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FTSE 100 Chart

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