The FTSE 100 index has retreated for the third straight day even after the relatively impressive economic data from the United Kingdom. Futures tied to the index have dropped by 0.30%. Other global indices like the Hang Seng and Nikkei 225 index have also dropped.
FTSE 100 news: The biggest news affecting the FTSE 100 index is on the UK GDP numbers. The data revealed that the economy contracted by 1.5% in the first quarter, a better performance than previously expected. On a year-on-year basis, the economy contracted by 6.1%, in line with expectations.
Further data showed that the mining production jumped by 1.8% in March while manufacturing production rose by 2.1%. The two were better than the expected increase of 1.0% and 3.8%, respectively. The construction sector also did well, with output rising by 5.8% on an MoM basis. The FTSE fell after these numbers because the BOE could start tightening earlier than expected.
The FTSE 100 index is also retreating ahead of the US inflation numbers. The data is expected to show that prices rose by more than 3% in April, the fastest reading in more than a decade. The FTSE and other indices are therefore falling because inflation could force the Fed to tighten.
The top stocks to watch in the index today are BP, Antofagasta, and Just Eat takeaway that will hold their AGM today. Coca-Cola will also publish its trading statement.
FTSE 100 index
The four-hour chart reveals that the FTSE 100 index has been on a steep downward trend in the past few days. The index has moved below the lower line of the ascending trendline. It has also declined below the 50-day and 25-day moving averages while the MACDA has also dropped below the neutral line. It is also hovering at the 38.2% Fibonacci retracement level.
Therefore, the index will likely keep falling as bears target the 50% retracement level at 6,815 pounds. Nonetheless, a move above the 23.6% retracement level at 7000 pounds will invalidate this trend.