FTSE 100
The FTSE 100 is set to open up by ~0.25% today as investors wait for the UK spending review by Rishi Sunak, Chancellor of the exchequer. The index is also rising as part of a general rally in global stocks after the Dow Jones and other US equities closed at record highs yesterday. The FTSE index is trading at £6,425 in the futures market.
In a speech at parliament today, Rishi Sunak is expected to outline the measures the government is taking to cushion the economy from the impact of the pandemic. According to The Times, he will outline a £4.3 billion spending package to help the jobless.
And they are many, with recent data showing that the unemployment rate soared to 4.8%. He will also talk about more funding to the NHS and education, which will be a positive thing for FTSE 100 companies.
The companies to watch today will be Rolls Royce, whose shares rose by more than 8% yesterday. Other firms to watch will be United Utilities, De La Rue, Virgin Money, and Cambria that will deliver their results.
The FTSE 100 rose to a high of £6,490 yesterday and is now trading at £6,425. It has moved above the important resistance level at £6,466, which was the highest level on November 16. It also remains above the 25-day exponential moving average.
Therefore, based on the strong positive sentiment in the market, the index will possibly continue rising as bulls aim for moves above £6,500. On the flip side, a move below £6,400 will invalidate the bullish thesis.
