The FTSE Finish Line - October 15 - 2024
FTSE Falters AT 8300 Again, Reversing To Red On The Session
Major oil stocks and industrial metal miners put pressure on Britain's benchmark index, which began lower on Tuesday as investors examined pay and employment statistics that had been issued earlier in the day. Heading into the close FTSE 100 was down 0.67%.
The largest sectoral losers were energy stocks, which lost 2.7% as oil prices dropped as a result of a media story suggesting that Israel is likely to refrain from attacking Iranian oil targets and a deteriorating demand outlook. Due to pressure from a stronger U.S. currency and uncertainty about the economic recovery of top user China, industrial metal miners saw a 1.9% decline in copper prices. In the three months leading up to August, the unemployment rate in Britain dropped to 4%, but during that time, job openings continued to shrink and pay growth slowed to its lowest level in more than two years. The Bank of England will probably be pleased with these numbers as it contemplates lowering interest rates once more. UK housebuilders' shares rise 2.2% as British pay growth slows and vacancies fall, keeping Bank of England's rate cut on track. FTSE 100 homebuilders Persimmon, Barratt, and Taylor Wimpey gain between 1.8% and 2.3%, while midcap player Bellway rises 6.6% on its upbeat outlook and better-than-expected annual profit.
In single stock stories following a reduction in first-half sales, Bytes Technology's shares in the UK The shares of Bytes Technology, the biggest loss on the FTSE mid-cap index, drops 6.1% to 463 pence. Hardware sales drop 48.1%, while the company reports a 2.9% drop in first-half overall revenue to 105.5 million pounds. Nonetheless, the business reported a 16.3% increase in operating profit for the first half, reaching 35.5 million pounds. Stock is down 22.6% so far this year, including losses from the current session.
In broker updates Paragon Banking Group's shares fall up to 7% to 716.5p after Jefferies downgrades the stock to "hold" from "buy" and lowers the price target to 780p from 875p. The stock hits a 5-month low and is the top percentage loser on the FTSE 250 index. Jefferies says the company is less appealing due to declining margins and lack of structural tailwinds, despite cheap valuations. Jefferies also double-upgrades NatWest Group to "buy" from "underperform", stating it is the easiest play on the hedge story. The brokerage prefers Lloyds Banking Group among its UK domestic bank coverage universe.
Technical & Trade View
FTSE Bias: Bullish Above Bearish below 8225
Primary support 8100
Primary objective 8600
Daily VWAP Bullish
Weekly VWAP Bullish
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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!