The FTSE 100 Index remained near the all-time record high PS10 250 as the recent bull market stalls amid a renewed tariff war between US and UK. The FTSE 100 Index was at PS10200 and up 35% from its lowest point in April of last year. This year, it has increased by 3%.
FTSE 100 Index stable after Trump tariff threats
The FTSE 100 Index reacted tamely during the weekend to Donald Trump’s new threat of tariffs. The US President warned the UK, and other European nations that they will be subject to additional tariffs starting on February 1st.
If the United States fails to complete its Greenland purchase or make progress, then in June, tariffs will increase by 25%.
The continued performance of Footsie indicates that investors are anticipating that tariffs will not actually be implemented. The index also reached a new record after the US implemented their tariffs last year.
There is also a possibility that these tariffs will be thrown out by the Supreme Court as early as this Tuesday.
Stocks in the UK: Key drivers for this week
This week, the FTSE 100 Index is likely to be impacted by a few more factors. This week will see some key company earnings, which can shed light on their performance. Burberry, JD Sports JD Weatherspoon Curry’s Associated British Foods Harbour Energy, JD Sports and JD Weatherspoon are some of the companies who will be releasing their earnings this week.
The earnings are expected to be released in the same time period as other American companies. Netflix, GE Aerospace Johnson & Johnson and Procter & Gamble are some of the more notable companies.
The FTSE 100 Index reacts to macro-data from the UK that will give more information on the current state of the UK economy.
On Tuesday, the Office of National Statistics will release the most recent jobs report. Economists expect the report to reveal that unemployment has decreased from 5,1% in October to only 5% in Novembre.
On Wednesday, UK will also release its consumer and producer price index for December. The upcoming report is expected to reveal that headline CPI increased from 3.2% to 3.3%, and the core CPI also rose to 3.3%.
These numbers indicate that Bank of England will probably keep interest rates the same in the next few months if they are correct. The ten-year Gilt rate has increased from 4,3% to 4.41% since January 14.
On Friday of this week, the ONS will release its latest data for retail sales.
FTSE 100 Index Technical Analysis
Charts of the daily timeframe show that the FTSE 100 Index recovered in recent months. It moved from a low point in April, last year, at PS7,538 to its current PS102,220.
The price of the stock recently passed PS9,920 – its high level from November 12 – and has now moved past this important resistance level.
Both the Relative Strength Index and Percentage Price Oscillator have been rising. The former has reached the level of overbought at 73.
The index is likely to continue rising, as bulls aim for the next important resistance level of PS10,500. If the index moves above this level, it could lead to further gains and possibly to PS11,000.
The forecast for the FTSE 100 Index ahead of UK inflation and key earnings can be updated as new information is released.
