The FTSE Finish Line - August 7 - 2023
FTSE Reverses Early Losses To Close In The Green
The FTSE 100 UK's started the week on a decline, opening 0.3% lower before staging a reversal to trade +0.3% ahead of the close. The main factor dragging down the index was the performance of heavyweight mining companies. Additionally, Unite Group, a provider of student accommodation, experienced a notable decline in its share price after a rating downgrade by RBC Capital Markets. These negative movements in specific sectors contributed to the FTSE 100's dip.
Last week, investors had to consider several factors that impacted the market sentiment. These included the widely expected quarter percentage point rate hike by the Bank of England, indications of slowing business activity across Europe, and a surprise credit rating cut in the United States. In particular, the industrial metals and mining sector suffered a 0.7% decline, driven by the drop in copper prices. Meanwhile, shares of Unite Group experienced a 1.8% slip to the bottom of the FTSE 100 following the rating downgrade by RBC Capital Markets, which downgraded its rating to 'sector perform' from 'outperform'. The midcap FTSE 250 index also experienced a dip of 0.2% on the same day. This index, comprising medium-sized companies, is considered a barometer of the UK economy and often reflects domestic market sentiment.
FTSE Intraday Bullish Above Bearish below 7650
Below 7550 opens 7400
Primary support is 7400
Primary objective 7750
20 Day VWAP bullish, 5 Day VWAP bearish
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!