FTSE 100: Shell Stock Rises as Rolls Royce and Cineworld Shares Plummet
The FTSE 100 is up by more than 0.60% as investors react to news that President Donald Trump is improving. The index is trading at £5,945. Other European indices are in the green, with the DAX index and Stoxx 50 rising by more than 0.60%.
Global stocks plummeted on Friday when Donald Trump revealed that he had tested positive for the Coronavirus. With the election being about a month away, investors were worrying that the illness would put the US at risk. Over the weekend, doctors treating him said that he had made some progress. He also took a short trip to greet his supporters.
The FTSE 100 is also reacting to a positive statement by Nancy Pelosi on stimulus. In an interview, the speaker said that her talks with Steve Mnuchin were going on well. As such, investors are optimistic that the two sides will make progress this week.
The FTSE is gaining because of the progress made by UK and EU teams on Brexit. While talks ended without a deal last week, Boris Johnson and Ursula von der Leyen launched intensive talks. These talks are aimed at reaching an agreement in less than two weeks.
Most companies in the FTSE 100 are in the green, with Persimmon, Sainsbury, Experian, and Melrose Industries leading the gains. Other top performers are Royal Dutch Shell, Informa, and Barratt Developments. On the other hand, Rolls Royce, Evraz, Fresnillo, and Polymetal shares slumped. A notable mover in London is Cineworld whose shares have dropped by more than 47% as the company shuts its movie theatres in the United States.
FTSE 100 technical analysis
The daily chart shows that the FTSE 100 is in its third straight day of consecutive gains. It is trading at £5,945. It also shows that the price remains between the descending green channel and is also slightly above the 25-day moving averages.
Therefore, as I wrote last week, the index will remain inside this channel in the near term. As such, the key levels to watch will be the upper side of the channel at £6110 and the lower side at 5,668.