FTSE 100 FINISH LINE 15/12/25
UK stocks saw a rise on Monday, with the FTSE 100 increasing by 0.9% and the FTSE 250 up 0.66% as analysts forecast a potential interest rate reduction by the Bank of England later in the week. The markets opened the week positively, having largely accounted for an expected rate cut. The FTSE 100 had risen by 0.9%, while the FTSE 250 climbed 0.8%. Both indices had ended the previous week lower for the second consecutive time. A Reuters survey indicated that analysts predict a tight 5-4 vote in favour of lowering the benchmark rate from 4.0% to 3.75%, which would mark the first decrease since August and set borrowing costs to their lowest in three years. Governor Andrew Bailey's decision is deemed crucial following recent data showing inflation dropping to 3.6% in October, with further declines expected. Markets believe that easing inflation strengthens the argument for a rate cut. While expectations surrounding rates have driven market sentiment, a rise in precious metals has further boosted the market. Precious metal miners saw a 1% increase, with gold prices remaining close to a seven-week peak and silver prices edging up due to a weaker dollar.
An index focused on personal goods, particularly luxury brands, surged by 2.3% after China revealed plans to enhance its exports and imports next year to promote "sustainable" trade. Burberry shares rose by 2.6%, and Watches of Switzerland Group gained 2.3%. Banks also performed strongly, rising by 1.3%, with Standard Chartered gaining 2.1% and Barclays 1.8%. The industrial metals and mining sectors were up 1.25%, with Glencore increasing by 1.3% and Antofagasta by 2.8%. However, individual stock movements included Hikma Pharmaceuticals, which dropped 1.4% to the bottom of the FTSE 100 after announcing that CEO Riad Mishlawi would be stepping down, with Executive Chairman and former CEO Said Darwazah taking over. Associated British Foods, the owner of Primark, fell by 1% after Jefferies downgraded its rating to "underperform" from "hold" and revised its target price down from 2000 pence to 1800 pence. Meanwhile, BAE Systems, the largest defence company in Britain, declined by 1% in line with the broader downturn in the European defence sector.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bullish
Weekly VWAP Bearish
Above 9720 Target 9800
Below 9700 Target 9550
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!