The FTSE Finish Line - August 9 - 2023
FTSE Glencore Reversal Leads Bluechips Higher
On Wednesday, the UK blue chip FTSE100 experienced an upward surge of 0.59% primarily driven by a recovery in the mining sector. The day saw a flurry of positive earnings reports, notably from Coca-Cola HBC, BP, and Glencore, contributing to the gains in the blue chip index. Notably, beverage stocks exhibited a rise of 0.8%, with Coca-Cola HBC's shares increasing by 1.3% following the company's revision of its annual revenue target in an upward direction.
Miners also enjoyed a climb of 0.8%, despite a series of less optimistic economic indicators emerging from China. This ascent was supported by a rise in metal prices, even against a backdrop of a weaker dollar. Among the mining entities, Glencore, a significant player in the industry, claimed the top position on the leaderboard with a robust day-on-day return of 2.94%.
The banking sector mirrored this positive trend, witnessing a rise of 0.8% in their stock values. This rebound comes after a previous decline of 1.5% in the preceding session. The improved global sentiment was attributed to Italy's government adopting a more accommodating stance toward a new banking levy. Barclays, in particular, achieved a 1.65% gain during the trading session.
However, not all sectors fared equally well. British water companies, including Severn Trent and United Utilities, faced declines of 2.3% and 3.3% respectively. These drops were precipitated by news that six British water companies are confronting lawsuits valued at over £800 million ($1 billion), as revealed by a law firm.However, leading the negative side of the ledger and sitting at the bottom of the table is Hiscox whose shares experienced a notable decline of nearly 7% during morning trading in response to the company's recent earnings announcement. The report revealed a pre-tax profit of $264.8 million for the first half of the year.
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 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!