Home Sports FTSE 100 retreats as sentiment worsens on Fitch downgrade and BoE survey

FTSE 100 retreats as sentiment worsens on Fitch downgrade and BoE survey

  • Psychological level 7000 There is still a key.
  • Bank of England The survey shows the potential for a prolonged fight against inflation.
  • The return of the strengthening of the dollar and risk sentiment may lead to a new low since the beginning of the year.

Recommended by Zain Wauda

Get a free stock forecast

The FTSE 100 fell more than 100 points in European trade as Fitch became the latest ratings agency to downgrade the UK’s sovereign debt outlook. The index suffered minor losses yesterday as OPEC+ announced cuts oil production, which seemed to be interpreted as a negative in the global fight against inflation.

How a pound spirals in September FTSE remained steady initially before finally breaking lower key psychological level 7000 and makes a run to year-to-date lows. We are back above a level that continues to look vulnerable as a combination of factors point to the possibility of further downside.

The Bank of England meanwhile, a recent survey showed inflation expectations rising in September. The survey, known as a “survey of decision makers”, also showed a rise in spending over the next 12 months, which is expected to hit consumers who are already dealing with unprecedented inflation. Executives are also confident that inflation will not be close Bank of England target of 2% over the next three years, and their estimates are closer to the 4.8% mark. If anything, the survey should serve as a reminder to the Bank of England that it has a long way to go to convince markets and policymakers that it can contain inflation and stimulate growth.

On the corporate front, Shell PLC ( SHELI ) fell 3% in European trade after issuing a Q3 refining profit warning. On the other hand, Imperial brands PLC (IMB) rose 4% after announcing share buyback plans. In the fourth quarter, the index could prove choppy as markets await clarity from the Bank of England on its plans for quantitative easing and government debt.

FTSE 100 Daily schedule – October 6, 2022

Chart, histogram Description is created automatically

Source: TradingView

Technically, we have seen an aggressive bounce from our recent low around 6775. The daily chart has now shifted as we broke above the previous lower high, indicating a potential bullish reversal price action.

Yesterday’s daily candle closed as a bearish inside bar close, signaling the potential for further declines. This is in contrast to the price action that indicates the uncertainty prevalent in the markets at the moment. In order to see a bullish push up, we need a sustained break above Key 7000 level while a break below would open the possibility of a new low since the beginning of the year.

Introduction to technical analysis

Learn technical analysis

Recommended by Zain Wauda

Key intraday levels to watch:

Areas of support

Zones of resistance

customers pure long.

customers pure short.

Change to




Every day 8% -3% 4%
Every week 0% 1% 1%

Resources for traders

Whether you are a beginner or an experienced trader, we have several resources to help you; indicators to track trading sentiment, quarterly trade forecastsanalytical and educational webinars held daily trade guides to help you improve your trading performance, and one specifically for those who are newbie to forex.

Written by: Zane Vauda, ​​Market Writer DailyFX.com

Connect with Zane and follow him on Twitter: @zvawda


Previous articleA zombie vortex could hit the east coast
Next articleRugby Australia may drop Super Rugby, New Zealand, controversy, broadcasts, details