FTSE 100
The FTSE 100 index futures are falling today even after the US Senate passed the $1.9 trillion stimulus package. The index is retreating ahead of key earnings from companies like IWG, Standard Life Aberdeen, Just Eat Takeaway, Legal & General, Morrison’s, and Rolls-Royce Holdings.
FTSE News: The FTSE 100 index has declined slightly even after the biggest stimulus package on record. The funds will expand jobless benefits, provide financial help to individuals, and help to support states and local governments.
In theory, the FTSE index should benefit from this package because most companies in the index make substantial revenue from the US. However, the package also increases the possibility of high-interest rates, which would affect their profitability.
The index is also falling ahead of important annual and quarterly earnings. Today, International Workspace Group (IWG) will deliver its earnings. Other key companies in the FTSE 100 that will publish are insurers Standard Life Aberdeen and Legal & General. Morrison Supermarket, which could soon be dropped from the index will also publish. Rolls-Royce will be the key firm to watch later this week.
The four-hour chart shows that the FTSE 100 index declined slightly today. It is trading at 6,682, which is between the middle and upper lines of the Bollinger Bands. The index is also slightly below the important resistance level at 6,800. In my view, it will decline to the middle line of the Bollinger Bands at 6,641 in the near term. However, a rise above 6,750 will invalidate this trend.
