FTSE 100
The FTSE 100 index is retreating ahead of Just Eat Takeaway and Legal & General earnings. Futures tied to the index have declined by 0.67%. Other global futures have also declined, with the DAX index falling by 0.20% and the Nasdaq and Dow Jones falling by more than 0.30%.
What’s ahead: The FTSE 100 index is falling as investors wait for the latest US inflation numbers. The data is important because of the current market environment, where UK and US bond yields have been rising.
As such, investors want to know whether the US inflation rose in February or not. If it did, it means that the trend will continue as the US implements the next $1.9 trillion stimulus package. While the stimulus is generally good for stocks, the impending interest rates could have a negative impact.
The FTSE 100 index is also reacting to the upcoming earnings by Just Eat Takeaway and Legal & General, the biggest asset manager in the UK. The earnings comes a day after the relatively disappointing results by Standard Life Aberdeen. The company said that clients redeemed more money in 2020 leading to lower income. As a result, the company slashed its dividends by a third.
The Legal & General share price has jumped by 8% this year. On the other hand, the Just Eat Takeaway share price has dropped by more than 20% this year.
The FTSE 100 index has dropped substantially from the highest point on Monday. On the four-hour chart, we see that the index is slightly above the lower side of the ascending channel. It is also slightly below the 61.8% Fibonacci retracement level. It is also slightly above the 25-day and 50-day exponential moving averages (EMA). Therefore, the pair may drop slightly, retest the lower channel, and then bounce back.
