Member access

4-Traders Homepage  >  Indexes  >  World  >  FTSE 100    F100   GB0001383545

In partnership with

FTSE 100 (F100)

163
After market
0.05%
6776.49
Real-time Quote. Real-time World - 07/30 11:40:00 am
6773.44   -0.50%
1h agoDJLONDON MARKETS : Barclays Tops FTSE 100 After Upbeat Results
1h agoDJEUROPE MARKETS : Russia Sanctions Hit Europe Stocks, But Spain Shines
2h agoDJEUROPE MARKETS : Russia Sanctions Hit Europe Stocks, But Spain Shines
SummaryQuotesChart AnalysisNewsAnalysisComponents 
Analysis summary4-Traders Strategies 

FTSE 100 : Bad outlook for the 'post-Olympic period'

08/16/2012 | 03:17am
Opinion : Check out the trading range breakout  5715/  5965

The FTSE 100 recorded one of the best European performance in the first half. The index has gained more than 5% since early January. The UK economy and especially the labor market has benefited from 'Olympic effect'. Unemployment in the second quarter falls to 8%, its lowest level in a year. However, the first estimate of GDP for the second quarter confirms the country's recession (-0.7% against -0.2% in the first quarter). Last month, the IMF urged the government to implement new tax measures.

Last week, the Bank of England revised its outlook for 2012. No growth is expected. The latest indicators of business conditions confirm the UK economy is weakening. The manufacturing PMI slumped to 45.4 for the month of July, its largest fall in 3 years. The services PMI fell to 19-month low in July.

The Bank of England decided to increase its asset-purchase program by 50 billion pounds in June, bringing it to 375 billion pounds. On Wednesday, the Bank governor Mervyn King announced that new liquidity to support the economy was not necessary at this time but that the interest rate would remain several months at 0.5%.

Technically, the trend remains bullish in daily data. A weekly close above 5870 points would push the index to the highs of 2012 around 5950 points. However, a confirmation of the bad economic forecasts could lead to a break below the support area of 5700 points and open the way for a more significant consolidation towards 5380 points.

FTSE 100 : FTSE 100 : Bad outlook for the 'post-Olympic period'
Copyright (c) 2014 4-Traders.com



React to this article

Disclaimer: 4-traders.com is a website published by SURPERFORMANCE SAS. Surperformance or 4-traders.com is not a registered broker-dealer nor a registered investment adviser. You understand that this web site and its content is furnished for your personal, noncommercial, informational purposes only, and that no mention of a particular security in this website constitutes a recommendation to buy, sell, or hold any other security, nor that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Surperformance and 4-traders.com services will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Information regarding trading and investment as provided by Surperformance professional is not tailored to the investment needs of any specific person. You acknowledge that you are responsible for your own financial decisions and should seek a registered financial agent depending on your own risk tolerance to advise you on your personal trading activities.

Advertisement
Dynamic quotes  
ON
| OFF