The FTSE 100 futures are up by 0.35% ahead of a relatively busy week with key economic and earnings data scheduled. It is trading at £6,353, which is a few points below the June 9 high of £6,405. Other global indices, including the German DAX, Japan’s Nikkei, and US Dow are also in the green.
Vodafone (VOD), the giant telecommunication company, will be the first FTSE 100 company to publish its earnings this week. The company will release its half-year results today and later on hold its investors and analysts event.
Analysts expect that the company’s revenue will be affected by the relatively weak roaming income because of the weak business and leisure travel. Also, investors will focus on the progress it is making in its Vantage Towers business that is scheduled to be spun-off in 2021. Vodafone shares ended the week at 119.52p.
Vodafone’s earnings will be followed by Imperial Brands, the giant cigarette manufacturing company that will release its earnings tomorrow. Analysts expect that the cigarette-maker will continue to struggle, particularly in its next-generation products. In the past 12 months, the firm has replaced its Chief Executive, issued profit warnings, and slashed its dividend for the first time in decades. As a result, its share price has declined from January’s high of 2,000p to today’s 1,356p.
Other FTSE 100 companies that will publish their earnings or trading updates this week are British Land, Experian Group, and Kingfisher. At the same time, other notable firms to watch this week will be Royal Mail and easyJet.
Meanwhile, investors will also watch out for important economic events. A key item to watch will be a speech by Boris Johnson on his energy policies. He will also address the ongoing skirmish at Downing Street after a senior advisor announced his resignation. Also, the Office of National Statistics (ONS) will release important economic numbers that will include inflation and retail sales. Most importantly, Brexit talks will resume in Brussels this week.
FTSE 100 technical analysis
Looking at the daily chart below, we see that the FTSE 100 index has been in an upward trend this month. It has gained by more than 16.45% this month and moved above the upper side of the descending channel that is shown in green. Also, the price has moved above the 50% Fibonacci retracement level at £6,255. Therefore, while the index is consolidating, I suspect that the price will continue rising as bulls aim for the 61.8% retracement at £6,570. The support for this trade will be at £6,522.
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FTSE index technical chart
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