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FTSE 100 Market Update

2/2/2023 1:12 PM

The leading index of the London Stock Exchange FTSE 100 is showing corrective dynamics and is now at 7797.0.

The UK stock market is correcting against the backdrop of yesterday's data, which reflected a decrease in inflation in the eurozone in January by 0.4%, which provoked a slowdown in consumer prices in annual terms from 9.2% to 8.5%. In turn, the Core CPI in monthly terms amounted to -0.8%, and in annual terms remained at the level of 5.2%. The European Central Bank (ECB) and the Bank of England are meeting today and are projected to raise their interest rates from 2.00% to 2.50% and from 3.50% to 4.00% respectively, which is the main factor exerting current pressure on stock market quotes.

The day before, the telecommunications company Vodafone Group Plc. reported a 0.4% drop in revenue from 11.65 billion pounds to 11.64 billion pounds, but reaffirming its positive guidance for 2023, which assumes earnings per share in the range of 0.07-0.09 pounds in the second quarter.

The growth leaders in the index are Polymetal International Plc. (+9.44%), Segro Plc. (+2.38%), Smiths Group Plc. (+2.23%).

Among the leaders of the decline are AstraZeneca Plc. (-2.93%), Anglo American Plc. (-2.29%), Abrdn Plc. (-2.12%).

On the daily chart, the index quotes continue corrective growth, remaining in the middle of the rising channel.

Technical indicators are holding a buy signal in preparation for its strengthening: the range of EMA fluctuations on the Alligator indicator is still expanded, and the histogram of the AO oscillator is forming corrective bars, being in the purchase area.

Support levels: 7730.0, 7530.0. | Resistance levels: 7850.0, 8000.0.

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