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The FTSE 100 index had a strong performance this week as investors reacted to important UK earnings and the Federal Reserve and Bank of England (BoE) decisions. Some of the top earnings came from oil giants like BP and Shell.
The Federal Reserve and the BoE left interest rates unchanged at 5.50% and 5.25%. In his statement, Jerome Powell, the head of the Federal Reserve left the door open for another rate hike in December.
However, most analysts believe that the two central banks will maintain their interest rates steady in the coming months. As a result, American and British stocks bounced back while bond yields pulled back to the lowest point in more than a month.
Watch here: https://www.youtube.com/embed/VzSn1lv2uxc?feature=oembedTop FTSE 250 and FTSE 100 earnings ahead
Looking ahead, the FTSE 100 and FTSE 250 indices will react to corporate earnings in the coming week. AstraZeneca, the second-biggest company in the FTSE 100 index after Shell, will publish its results on Thursday.
These results will provide more signs about how the company is reacting to the post-Covid-19 bump. Earlier this week, Pfizer, another Covid-19 beneficiary, said that its business was being dragged by weak Covid-19 demand.
In the most recent results, AstraZeneca said that its revenue rose by just 2% in the first half to $22.29 billion. Excluding Covid-19 vaccines, its revenue rose by 16%. In Q2, its revenue rose by just 6% to $11 billion.
Persimmon and Taylor Wimpey will be the other FTSE 100 companies to watch. The two, which are major housebuilders, will provide more colour about the state of the housing sector. Recent data shows that UK home prices have pulled back quite a bit as interest rates jumped.
Entain share price crashed after the company released relatively weak financial results. Its statement pointed to a slowing sports betting and gambling sectors. Therefore, investors will focus on Flutter Entertainment’s earnings. Flutter is a big company that owns brands like Fanduel, Betfair, PaddyPower, and PokerStars.
The other top FTSE 100 and FTSE 250 companies to watch next week will be ITV, Marks and Spencer, Direct Line, and IWG. IWG will be watched because of the ongoing rumours that WeWork is about to go bankrupt.
FTSE 100 index analysis
On the daily chart, we see that the FTSE 100 index bounced back this week. This rebound was notable since it happened after it retested the important support at £7,283, the lower side of the ascending trendline.
Still, the FTSE 100 index remains below the 50-day and 100-day Exponential Moving Averages. The two averages have made a bearish crossover. It has also moved slightly above the Woodie pivot point.
Therefore, the short-term outlook for the index is mildly bullish, with the next point to watch being at £7,510, the first resistance of the Woodie pivot point. In the longer term, though, the index will likely resume the downward trend as sellers target the support at £7,283.
The post FTSE 100 analysis ahead of Beazley, Flutter, Persimmon, AstraZeneca earnings appeared first on Invezz
