The FTSE 250 index has been in a strong bearish trend in the past few weeks as worries about the British economy continue. It has crashed by more than 28% from its highest level in 2021, meaning it has underperformed the blue-chip FTSE 100 index, which has dropped by less than 10%.
The FTSE 250 index will be in the spotlight this week as investors focus on the upcoming earnings from some important UK companies.
On Monday, FTSE 250 constituents like Unite Group and Sirius Real Estate will publish their results. They will be followed by Reach PLC, Robert Walter, and ScS Group. Robert Walters is a firm that provides hiring services to some of the leading companies in the UK.
The PageGroup share price has crashed by more than 45% from its highest level in 2021. The firm will publish its results on Wednesday. Analysts expect that the company’s business slowed as concerns about the UK and global economy remained. The company expects that its annual profit will be £206 million. Hays, another recruiting company will also publish its results.
The other companies that will move the FTSE 250 index will be easyJet and Barratt Development. EasyJet share price has collapsed this year despite the steady recovery of the aviation industry. The company will publish its results on Friday. Barrat, which will publish on Wednesday, will provide more information about the housebuilding industry. House builders like Persimmon and Taylor Wimpey have seen its share price collapse by more than 40% this year as mortgage rates rise.
Other notable shares to watch will be Entain and Ashmore Group. Ashmore share price has tumbled by more than 30% this year as concerns about asset managers rise. Indeed, Ken Griffin and Point72 have all placed short bets on Ashmore and Abrdn.
The daily chart shows that the FTSE 250 index has been in a strong bearish trend in the past few months. It collapsed below the important support at £18,280, which was the lowest level on July 5. Along the way, it has crashed below all moving averages while the MACD has continued falling.
Therefore, the index will likely continue falling as sellers target the next key support level at £16,626. A move above the resistance at £18,280 will invalidate the bearish view. The FTSE 100 is also expected to remain under pressure this week since most companies are expected to publish weak quarterly and half-year results.
This post was last modified on Oct 10, 2022, 05:05 BST 05:05