- Summary:
- The FTSE 250 index is set to rise in early trading as traders react to news that JD Sports want to acquire Debenhams the bankrupt retailer
The FTSE 250 index is set to open higher today as the market reacts to the recent vaccine, consolidation, Brexit news, and upcoming earnings. The index ended the day 0.40% higher at £19,582 yesterday. On the other hand, FTSE 100 is up by 0.28% in the futures market.
In a statement yesterday, Boris Johnson ended the lockdown in England. But, he outlined a tougher tiered system to replace the lockdown. The new plan calls for reopening of non-essential businesses but limit the number of customers. Also, the government will apply the so-called rule of six for outdoor meetings. The new system is said to be slightly better for FTSE 250 components than the overall lockdown.
The FTSE 250 is also reacting to the bid to rescue Debenhams, the bankrupt retailer. According to The Times, JD Sports is in talks to acquire the high-street fashion store. That will save more than 12,000 jobs if the deal goes through. JD is said to be interested to Debehmans because of its strong brand and its website, which is among the most popular in the UK.
The index is also moving because of the latest Joe Biden appointees, who seem to favour US international leadership instead of Trump’s America First policies. They include John Kerry, Anthony Blinken, and Janet Yellen.
The top companies to watch today in the FTSE will be Pets at Home, Crainswick, Compass Group, and Pennon Group. The four companies will release their quarterly results today, with Pets at Home expected to see a bounce. Compass and Pennon are members of the blue-chip FTSE 100 index.
Other global indices like the Nikkei 225, Dow Jones, and S&P 500 are also rising.
FTSE 250 technical outlook
On the daily chart, we see that the FTSE 250 index has been in a strong upward trend. It remains above the 25-day and 50-day moving averages. It is also slightly below the 78.6% Fibonacci retracement level and the important support at £18,470. The index also seems to be consolidating in the past few days. Still, the path of least resistance is higher, with the next target being at the 78.6% retracement at £20,000.
FTSE 250 technical chart
