The FTSE 100 futures tilted upwards on Monday morning as focus shifted to the upcoming UK bank earnings. It rose to about £7,000, which was the highest level since October 18 of this year. It has risen by more than 4.45% from its lowest level this month amid the ongoing political challenges in the UK.
The FTSE 100 and FTSE 250 indices will have a busy week as investors focus on the ongoing political transition in the country. Analysts believe that Rishi Sunak, the former Chancellor, has a high chance of becoming the next prime minister. Other potential contenders are Boris Johnson and Penny Mordaunt.
The other key important event will be the upcoming earnings by the biggest banks in the UK. HSBC, the biggest European bank, will publish its earnings on Tuesday. These results will come at a time when the bank is going through a transition as it refocuses on the Asian market. Analysts expect that its results will be positive, thanks to the rising interest rates. HSBC share price has risen by more than 7.6% from its lowest level this month.
The FTSE 100 will then react to the latest Barclays earnings scheduled for Wednesday. Expectations are that its retail banking division strength will partially offset the sharp decline in its investment banking division. The earnings will come a few days after the company agreed to pay 50 million pounds for failing to disclose a 2008 funding deal by Qatar. Barclays share price has risen by almost 10% from its lowest level this month.
Lloyds, the biggest bank in the UK, will publish its results on Thursday. The company is expected to grow its net interest income since UK interest rates have risen sharply in the past few months. Lloyds share price has risen by more than 7% from the lowest level this month.
The last UK bank company to publish its earnings on Friday. NatWest share price has risen by more than 11% from the lowest this month. Other European banks that will likely affect the FTSE 100 index are Credit Suisse, Deutsche Bank, and UBS. At the same time, American tech giants like Alphabet, Microsoft, Visa, Meta Platforms, Apple, and Amazon.
Other FTSE 100 constituents that will publish their results are Glencore, IAG, Unilever, Reckitt Benckiser, and Whitbread.
The four-hour chart shows that the FTSE 100 index has risen sharply in the past few days. It rose above the first resistance of the standard pivot point at 6,983, which is higher than this month’s low of 6,707. It has moved above the 50-day moving average while the Relative Strength Index (RSI) has moved close to the overbought level.
Therefore, the Footsie will likely continue rising as bulls target the next key resistance at 7,103 pounds. A move below the support at 6,930 will invalidate the bullish view.
This post was last modified on Oct 24, 2022, 08:33 BST 08:33