Strong start of the trading day for the FTSE 100 index. It made a new 2021 high as it trades comfortably above 7,200 points. McDonald’s, Coca-Cola investors, prepared for the quarterly earnings.
FTSE 100 outlook remains positive as the index made a new high and trades comfortable above 7,200 points. It struggled to hold above 7,000 points for several months this year and found strong support at the 6,900 level, from where it bounced for three consecutive times. The index opened flat the trading day, unwilling to participate in the somehow weak opening seen in other European markets.
The Spanish index is down the most so far in the European session, trading lower by -0.53% at the time this article is written. In Germany, the German Dax index is down slightly but holding above 15,700 points nevertheless.
In the United States, the stock market continues its bullish run. Yesterday, both the S&P 500 and the Dow Jones index made new all-time highs – something familiar in 2021. Futures point to a green opening today as well.
Commodities gave up some of their recent gains today, as gold, natural gas, silver, copper, and oil, are down between -0.14% (gold) and -1.54% (oil). Oil, in particular, deserves special attention. While the price has corrected today, it remains well bid while trading above $83.
Economic Events to Consider Today
Today it is all about the Bank of Canada’s decision as traders expect the central bank to reduce its asset tapering even further. The market fully expects one rate hike to be delivered next year in April, and the Canadian dollar trades with a bullish tone.
In the United States, the Core Durable Goods Orders are expected at 0.4% m/m vs. 0.3% previously. The data, however, is secondary in importance and thus unlikely to move financial markets.
No important economic data is scheduled during the European session.
Today’s Markets to Watch
Today’s markets to watch are FTSE 100, Coca-Cola, and McDonald’s.
FTSE 100 Outlook
The U.K. index found strong support at the 6,900 area and now broke to new highs. While above 7,000, the bias remains bullish.
Coca-Cola is one of the many companies releasing their quarterly earnings today. The price action looks constructive as the market formed a contracting triangle that looks like a pennant formation. A daily close above $55 suggests more upside is possible, while a move below $53 is bearish.
McDonald’s reports its quarterly earnings too, and the stock price broke out of a rising wedge pattern. While below $245, the weakness should continue as the rising wedge is a powerful reversal pattern. Winners and Losers U.K. and U.S. stock market indices are the main winners; commodities started the trading day with a weak tone.
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