FTSE 100 Slips as Mining Stocks Fall; DAX Steadies Following Three Days of Declines
Arslan Butt•Thursday, October 24, 2024•3 min read
On Wednesday, London’s FTSE 100 continued its losing streak, marking its fourth consecutive session in the red, driven by a sharp decline in mining stocks. Investors remained cautious, steering away from riskier assets ahead of the US presidential election and the upcoming UK budget announcement.
Both the FTSE 100 and the domestically focused FTSE 250 ended the day down 0.6%, just above the one-week lows set in the prior session.
Meanwhile traders are also doubting the pace of interest rate cuts by the US Federal Reserve. US Treasury yields are trading at three-month highs, putting pressure on equity markets.
US 10Yr yield up through 4.25% today….. it's been pretty much straight up since the Fed cut 50bps in September
FTSE 100 Rebounds as Oil Prices Rise; Barclays and Unilever Beat Expectations
The FTSE 100 is expected to recover on Thursday, aided by a further increase in oil prices, following losses experienced by stock markets on both sides of the Atlantic the previous day. As it rose 36 points, or 0.4%, to 8,295 on Thursday morning, the FTSE 100 did indeed get off to a fluttering, if not flying, start.
This morning, among a deluge of FTSE results, Barclays PLC (LSE: BARC) surpassed expectations with a 16% increase in third-quarter earnings and improved certain aspects of its full-year projection.
British banking major #Barclays Plc $BCS reported Thursday that its third-quarter profit before tax climbed 18 percent to 2.23 billion pounds from last year's 1.89 billion pounds. Attributable profit improved 23 percent to 1.56 billion pounds from 1.27 billion pounds last year.… pic.twitter.com/SezJzECeTq
Unilever PLC (LSE: ULVR) is at the top of the early leaderboard, climbing 2.7% as its third-quarter sales volumes expand at the fastest rate in 3.5 years, which is also somewhat better than what analysts had predicted.
The next company up is Anglo American PLC (LSE: AAL), which saw a 2.2% increase after the company announced operational updates about its iron ore and copper mining enterprises.
Shares of Barclays PLC (LSE: BARC) have also increased by 2% due to the company’s revised full-year expectations and better-than-expected profitability.
UK 100 Index Price Forecast – October 24, 2024
The UK 100 Index (FTSE 100) is trading near $8,323, stabilizing after testing support at $8,278. Immediate resistance lies at $8,373, followed by $8,399. The RSI reading of 57.04 suggests upward momentum, while the 50-day EMA at $8,307 provides near-term support. The next support level is at $8,238, and a break below this could lead to further downside pressure. A push above $8,373 would confirm a continuation of the bullish trend.
Key Insights:
FTSE 100 stabilized above key support at $8,278, up 0.04%.
Immediate resistance at $8,373, next target $8,399.
RSI indicates bullish momentum with potential to breach resistance.
DAX Slips for Third Straight Session Amid Rising US Treasury Yields
Following a 0.20% loss in the prior session, the DAX fell by 0.23% on Wednesday, October 23, to close at 19,378. This is the third session in a row in which the DAX has lost ground.
The demand for stocks listed on the DAX was affected by rising US Treasuries, uncertainties around the US Presidential Election, and nervousness in global demand.
"We are living in a very uncertain world. The polarization..the uncertainty of the US election. What's the world going to be after the election?"
Following Deutsche Bank’s increase in bad loan predictions, the stock fell 0.86 percent on Wednesday. An increase in bad loans can affect the bank’s funding costs, which in turn can affect the net interest margins, NIM.
Among retail equities, Zalando SE fell 2.64 per cent and Adidas 1.866 per cent. Retail stocks were affected when L’Oréal blamed sluggish demand from China for missing sales projections for the third quarter.
DAX Rebounds, Gaining 0.68% After Three Days of Declines – October 24, 2024
After three consecutive days of losses, the DAX index rebounded on Thursday, climbing 0.68% to reach $19,513.69 during the trading session on Xetra. The German stock market index has been stabilizing after hitting a record high of $19,675 last week, according to HSBC.
The DAX found support near $19,331, prompting a technical bounce that pushed it higher. Immediate resistance is now seen at $19,589, with further hurdles at $19,682 and a key level at $19,782. On the downside, support remains strong at $19,420 and $19,331. The RSI currently stands at 54.28, indicating moderate momentum. The 50-day EMA at $19,420 is acting as short-term support.
Key Insights:
DAX rebounded from support at $19,331, gaining 0.68%.
Immediate resistance at $19,589, with the next target at $19,682.
RSI suggests moderate momentum, with potential for further gains.
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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