FTSE 100 Dips on Vodafone Woes & Interest Rate Concerns
UK’s FTSE 100 declines on Vodafone drag and concern over interest rates.
As investors evaluated the potential for further interest rate increases and their effects on the British economy, the main stock index in the UK moved lower on Thursday. This decline was mostly caused by a decline in shares of mobile operator Vodafone.
The heavily resource-focused FTSE 100 (.FTSE) fell 0.1%.
Global investors were alarmed by the Bank of Canada’s unexpected rate increase, which raised concerns that major central banks would extend their rate tightening cycles.
Given the high CPI readings, the BoE (Bank of England) is already anticipated to raise rates again this month in this country; if anything, the data has only served to confirm those predictions, according to Stuart Cole, chief macroeconomist at Equity Capital.
Investors will be able to assess the status of the economy and the trajectory of policy tightening next week based on data on the UK labor market, economic growth, and monthly industrial and manufacturing production.
With a 4.4% decline, Vodafone Group plc was on pace for its biggest one-day decline in three weeks.
FTSE 100 TECHNICAL ANALYSIS DAILY CHART:
- FTSE 100 is currently trading in the down channel.
- FTSE 100 is currently trading below 20&50 SMA.
- RSI is in buying zone which suggests bullishness and Stochastic is suggesting no trend.
- Immediate resistance is at 7658.3 & its immediate support level is 7619.5
HOW TO TRADE FTSE 100 IN THIS WEEK
After trending upward, the FTSE 100 turned to a downward trend and began trading in that direction. Currently, the FTSE 100 is trading downward and experiencing resistance at the 38% Fibonacci level. It is currently in an important trading zone, and if this zone is broken, we can expect it to continue trading downward.