FSTE 100 Plagued by Weak GDP Data, Political Missteps and Rising Yields

[MongiIG]

FTSE 100 NEWS AND ANALYSIS

• FTSE 100 continues lower – crucial long-term support on the horizon
• UK Q3 earnings picks up with notable names reporting in the week of Oct 25th
• The loss in confidence in UK inc. is likely to weigh on equities as BoE hike odds reach 100 bps

The FTSE 100 remains vulnerable to downside risk as traders and investors eye key dates later this month. The Bank of England Governor Andrew Bailey confirmed that Friday marks the last day the Bank stands ready to intervene in the bond markets in an attempt to quell reports of the possibility of an extension. As discussed earlier by Nick Cawley in his GBP update, the end to the Bank’s support sets a target for those who wish to test the BoE’s resolve. UK central bankers’ jobs have been made even tougher after August GDP figures revealed a shock decline in growth – something the new Prime Minister is looking to tackle head on.

After calming the longer-dated UK bond markets via direct purchases by the central bank, the 30-year government yield in on course to test the recent high - around 6 basis points away at the time of writing – which may see the Bank step up efforts once more.

 

Oct 12, 2022 | DailyFX
Richard Snow, Analyst

[MongiIG]

DAX 40 and FTSE 100 Index Technical Outlook: Biased Lower

Oct 12, 2022 | DailyFX
DailyFX Team, Research

GERMAN DAX INDEX, UK FTSE INDEX - TECHNICAL OUTLOOK:

• The DAX index has fallen below key support.
• The FTSE 100 is breaking below a multi-month range.
• What is the outlook and what are the key levels to watch?

DAX INDEX Monthly Chart

 

Chart Created Using TradingView

 

 

FTSE INDEX Weekly Chart

 

 

Chart Created Using TradingView