- Summary:
- The FTSE 100 is in a tight range even after some strong numbers from the UK. GVC Holdings, Rolls Royce, and IAG are the best performes
The FTSE 100 is up by ~0.15% as investors remain optimistic about stimulus and Brexit. Also, recent housing data and corporate earnings from the UK have been relatively strong. The index is trading at £5,960, which is in the same range it has been recently.
Why has the FTSE 100 gained today?
UK stocks are rising in reaction to a series of positive economic numbers from the UK. Earlier today, data by the surveyors institute showed that the house balance rose by 61% in September. Similarly, house prices have risen at the fastest pace in decades as more people in the UK apply for mortgages. This is as a sign that the UK economy is relatively stable even as the country battles the coronavirus pandemic.
Meanwhile, the FTSE 100 is rising because investors are hopeful that the UK will reach an agreement with the European Union on Brexit. The stakes are simply too high for the two sides not to reach a deal. Indeed, the stakes are higher for the UK, which sells goods worth billions of dollars to the EU.
Positive corporate earnings are also pushing the FTSE 100 index higher. Yesterday, results from Tesco showed that the retailer’s revenue continued to do well in the first half of the year. Today, more companies released strong numbers.
For example, GVC Holdings said that it expects to have an EBITDA of between £770 million and £790 million. That was £50 million higher than estimates. This is after the firm’s gaming revenue rose by 12% in the third quarter. Other companies that reported good earnings are Hargreaves Lansdown and CMC Markets.
The top-performing stocks in the FTSE 100 are GVC Holdings, AIG (owner of British Airlines), Imperial Brands, and Rolls-Royce. Rolls-Royce share price has jumped by 2.39%, pushing its gains in the past few days to more than 36%. On the other hand, the worst-performing stocks in the FTSE are Hargreaves, Johnson Matthey, Fresnillo, and Evraz.
Top-Performing FTSE Stocks
FTSE 100 technical analysis
The daily chart shows that the FTSE 100 has been in a tight range in recent weeks. The index has formed a descending triangle pattern that is shown in blue. Also, it has formed a descending equidistance channel, with the support being shown in red. The price is also slightly above the 61.8% Fibonacci retracement level.
Therefore, in the near term, I suspect that the price will continue rising as bulls aim for the upper side of the triangle and channel at ~£6082.
On the flip side, a move below the lower side of the channel at £6082 will invalidate this trend.
FTSE technical chart
