The FTSE 100 is set to continue falling as traders focus on key economic data from the UK, the Fed interest rate decision, and the upcoming earnings by Dixons Carphone. The index is trading at £6,540, which is slightly below last week’s high of £6,645.
What to expect: The Fed has an outsize role in the global equities market because of the overall size of the American capital market. Therefore, the FTSE 100 investors will be focusing on the bank’s final decision of the year. In this decision, it will try to balance the optimism about a vaccine and the fact that the number of cases in the country is rising.
London lockdowns: The FTSE index will also react to the recently-enacted lockdowns in London. In a statement on Monday, Health Secretary, Matt Hancock said that the city will move to Tier 3 rules. This means that public and private gatherings will be prohibited. Also, bars and pubs will be closed while shops will stay open but follow strict rules.
FTSE companies to watch: The top firm to watch will be Dixons Carphone, the FTSE 250 company that will release its interim earnings. These numbers will provide a gauge of the country’s retail sector. Other firms to watch will be Rolls-Royce and Rightmove, which were recently downgraded by Panmure Gordon and JP Morgan.
What next for the Footsie? On the four-hour chart, we see that the FTSE 100 index has been under pressure lately. It has hit a top at £6,645 and also found support at £6,490. It is also oscillating around the 25-day and 15-day exponential moving averages.
Therefore, for today, I suspect that the index will remain at the current range, with the aforementioned levels being the key ones to watch.
