FTSE 100 Higher On TikTok and SoftBank News

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Written By: Nikolas Papas
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  • FTSE 100 opened slightly higher on Monday as investors following the Brexit negotiations and the upcoming vote in the Parliament. The odds for a Brexit deal

FTSE 100 opened slightly higher on Monday as investors following the Brexit negotiations and the upcoming vote in the Parliament. The odds for a Brexit deal before the October 15 deadline diminishing as both sides keep the harsh rhetoric showing no signs of compromise. Speculation is now that the trade relations between the two sides would be on the World Trade Organization terms. 

Bank of England Decision On Thursday

Investors focus will shift to BOE decision on Thursday. Economists now expect that the BOE will keep interest rates unchanged, but the rising Brexit uncertainties have also revived the negative interest rates scenario. Markets have discounted zero interest rates while Governor Bailey in the last policy meeting said that negative interest rates remain in the Bank of England toolbox. 

TikTok And SoftBank Move Markets

Mergers and acquisitions news gives a hand to stocks around the globe. Oracle seems to have a deal to buy the U.S. operations of TikTok while SoftBank will sell Arm Holdings to Nvidia. 

AstraZeneca is 0.04% lower at 8,425 after the company announced that it resumed the clinical trials of its coronavirus vaccine. Lloyds Banking Group is 0.41% higher at 25.99, Barclays is 0.04% higher at 102,66, and NatWest is 0.24% lower at 101.85. 

FTSE 100 Analysis

FTSE 100 is 0.14% higher at 6,041 as the rebound from the four-month lows continues. Now the index has reached the critical resistance at the 100-day moving average. The attempt today to break above met some selling pressure, and the index retreated. Bulls need to see a close today above 6,086. If that happens then, the next hurdle would be met at 6,173 the top from August 25. 

On the contrary support for FTSE 100 stands at 5,997 the low from Friday’s trading session. The four-month lows at 5,779 would provide the next support level. 

FTSE 100 Daily Chart

Written By: Nikolas Papas

Technical analyst of forex, stock market indices and commoditiesTechnical analyst of forex, stock market indices and commodities Skills: Technical Analysis · forex · Stocks · Crypto · Writing

Published by
Written By: Nikolas Papas