• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing FTSE 100 forecast for December 2022
Investing

FTSE 100 forecast for December 2022

by December 5, 2022
by December 5, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The FTSE 100 index has recovered modestly in the past few weeks as hopes of central banks’ pivot increased. It rallied to a high of £7,633, which was the highest level since June. This recovery has turned the Footsie positive for the year, meaning they have outperformed their American counterparts like the Dow Jones and Nasdaq 100 indices.

UK stocks recovery accelerates

The FTSE 100 index has recovered modestly even as concerns about UK’s recession continued. In a report published on Monday, CBI warned that the UK would fall into a year-long recession in 2023 as inflation remained at an elevated level. 

The organisation expects that the economy would contract by 0.4% in 2023 as business investments pulled back. It recommended that the government should unlock business investments by changing regulations, changing the immigration system, and removing the block to onshore wind. According to CBI, these measures will unlock about £50 billion of capital investments.

The FTSE 100 recovery has also coincided with the rebound of the British pound. After crashing to the lowest level since the 1980s, the sterling has rebounded by more than 18.8% from its lowest point this year. 

A key catalyst for the FTSE and GBP/USD recovery is the view that the Bank of England and the Federal Reserve will slow the pace of rate hikes. In his statement last week, the Federal Reserve Chair hinted that the bank will hike rates by 0.50% in December.

Meanwhile, with the UK in a recession, the Bank of England will likely lower the size of rate hikes in its meeting next week. They also expect that it will hike by 0.50% in December.

The key drivers for the FTSE 100 index in the past 30 days were Hikma Pharmaceuticals, Fresnillo, Centrica, Prudential, and Associated British Foods (ABF). All these stocks have rallied by over 17% in this period. On the other hand, the top laggards were Vodafone, Shell, Persimmon, BP, and GSK.

FTSE 100 forecast

FTSE 100 chart by TradingView

The daily chart shows that the FTSE 100 index has been in a strong bullish trend in the past few weeks. In this period, the index has moved above all moving averages while the MACD has continued rising. The Relative Strength Index (RSI) has risen and is approaching the overbought level.

It also moved above the important resistance level at £7,520, the highest level since September 13. Therefore, the index will likely continue rising as buyers target the next key resistance at £7,690, the highest level in February.

The post FTSE 100 forecast for December 2022 appeared first on Invezz.

You Might Also Like
  • Okta stock just popped up 15%: explained here
  • Bitcoin remains vulnerable near $16k amid FTX contagion
  • Sarat Sethi says oil and gas will ‘stay the leader’
  • Blackstone vs Blackrock: Better buy after a tough 2022
Share
0
FacebookTwitterPinterestWhatsapp

previous post
CAC 40 index forecast after S&P cuts France’s outlook to ‘negative’
next post
The penetration of smart gas meters in Europe reached 38 percent in 2021

You may also like

Cramer double downs on Disney shares as Bob Iger retakes...

November 29, 2022

FedEx is ‘setting the bar pretty low’: Expert

December 21, 2022

United Airlines stock has a 50% upside from here: Morgan...

December 5, 2022

Shell share price analysis amid oil market woes

November 28, 2022

Options trading platform SignalPlus integrates with Deribit

December 29, 2022

High Probability Strategy: A Holy Grail of Options Trading?

March 24, 2023

Pro: Tesla stock is not a ‘buy’ even if Musk...

December 20, 2022

Covered Calls Options Strategy Guide

May 30, 2023

Bank of Ghana raised rates to 19-year high; Debt-ridden government...

November 29, 2022

Will Constellation Brands’ sell off continue as CEO insists it...

January 6, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Oil prices rise more than 1% as Israel vows to intensify attacks on Iran

      June 20, 2025
    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

      June 20, 2025
    • Apple looking to make ‘premium’-priced folding iPhones starting next year, analyst says

      June 20, 2025
    • Nike pushes back Skims launch with Kim Kardashian due to production delays

      June 19, 2025
    • The Fed Is Getting It Wrong AGAIN As They Hold Rates Steady

      June 19, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,599 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,875 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,578 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,541 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,417 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,142)
    • Investing (538)
    • Stock (2,621)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Oil prices rise more than 1% as Israel vows to...

      June 20, 2025
    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New...

      June 20, 2025
    • Apple looking to make ‘premium’-priced folding iPhones starting next year,...

      June 20, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,142)
    • Investing (538)
    • Stock (2,621)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Key Apple supplier reports a big...

    December 5, 2022

    Here’s what Fed Chair Jerome Powell’s...

    November 30, 2022

    Aston Martin Lagonda: Will this fallen...

    December 6, 2022
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here