- Summary:
- Rolls-Royce, IAG, Ocado, and Lloyds will be the top FTSE 100 companies to watch for today as the US deals with the new Covid virus
The FTSE 100 is set to open lower today in part because of the stronger British pound. Futures tied to the index are trading at £6,390, which is still higher than this week’s low of £6,315.
What happened: The FTSE 100 index is probably rising because of the rising sterling, which is up by 0.60% today. This increase is partly due to the overall weak US dollar and the rising possibility of a Brexit deal.
According to media reports, the UK and the European Union have made a series of concessions about Brexit. While they have not yet reached an agreement, investors are optimistic that there’s a path towards a deal.
The FTSE index is also falling even after France announced that it was starting to allow truck drivers to move to and from the United Kingdom. To do so, the UK has mobilised thousands of health officials to test drivers who are at the border.
Why the FTSE is falling: In addition to the stronger pound, the FTSE 100 index is falling because of the likelihood that the UK will move to tier-4 lockdown to prevent the new mutation of the virus. This is happening as Britain recorded 691 Covid deaths on Tuesday, the highest figure since May. Daily cases rose to a record 38,000.
Companies to watch today: The top companies to watch today will be retailers like Tesco and Ocado and banks like Barclays and Lloyds Bank. Also, travel-related companies like Rolls-Royce, IAG, and InterContinental Hotels will also be watched.
FTSE 100 technical outlook
On the daily chart, we see that the FTSE 100 index formed a double-top pattern at £6,643 this month. The price is on the same level as the 25-day exponential moving average and is slightly above this MA. It is also between the 50% and 61.8% Fibonacci retracement level. Therefore, while the volume is expected to remain low, the index will possibly continue to fall, with the next target being at £6,250.
FTSE technical chart
