The FTSE 100 has been somewhat more volatile than most other major indices since March. However, the sectors which have under- and outperformed are quite similar, with manufacturing and tech generally doing well and consumer discretionary losing ground. The UK was an exception to the banking crisis earlier this year, with some major British banks such as Natwest and HSBC up more than 20% so far in 2023. Dividend yields from constituents are generally good compared to the average for major American companies but there have been several cuts this earnings season.
Earnings season for major British companies is more-or-less over now, so attention could return to general economic data, especially claimant count change as noted above, and the chart. The price seems to be comfortable for now within the value area between the 50 and 100 simple moving averages although these showed a death cross around the middle of last month.
UK100’s reaction to yesterday’s news was also significantly weaker than the pound’s relatively speaking. 8,000 seems to be a clear resistance, with a move above there in the near future unfavourable, but a sustained move lower to test the 200 SMA also seems unlikely in the next few weeks barring a big surprise from Tuesday’s data. 7,680 was the high in January 2020, so this area is an important reference and close to the middle of the recent range.
Earnings season for major British companies is more-or-less over now, so attention could return to general economic data, especially claimant count change as noted above, and the chart. The price seems to be comfortable for now within the value area between the 50 and 100 simple moving averages although these showed a death cross around the middle of last month.
UK100’s reaction to yesterday’s news was also significantly weaker than the pound’s relatively speaking. 8,000 seems to be a clear resistance, with a move above there in the near future unfavourable, but a sustained move lower to test the 200 SMA also seems unlikely in the next few weeks barring a big surprise from Tuesday’s data. 7,680 was the high in January 2020, so this area is an important reference and close to the middle of the recent range.