• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Investing Is the FTSE 100 a buy ahead of BoE and UK CPI data?
Investing

Is the FTSE 100 a buy ahead of BoE and UK CPI data?

by December 13, 2022
by December 13, 2022 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The FTSE 100 index remained under pressure on Tuesday as investors waited for the upcoming UK inflation and Bank of England (BoE) interest rate decision. It was trading at £7,460, which was a few points below this month’s high £7,630. 

UK inflation and BoE decision

The FTSE 100 index will be in the spotlight this week because of the important macro events that are scheduled. As I wrote in this article, the Federal Reserve will conclude its two-day meeting on Wednesday.

Economists expect that the Federal Reserve will hike rates by 50 basis points after it has hiked by 0.75% in the past four meetings. Jerome Powell will likely provide hints that the Fed will leave interest rates at an elevated level in 2023. His fear is that a dovish tone will spur inflation at a time of slow growth.

Fed actions tend to have an impact on the FTSE 100 and other global indices like the Dow Jones and Hang Seng. 

The FTSE 100 index will also react to the latest US and UK inflation data scheduled for Tuesday and Wednesday. Economists expect that inflation in the two countries diverged. In the US, expectations are that the headline CPI dropped from 7.7% in October to 7.3% in November.

On the other hand, economists expect that UK’s inflation remained in a double-digit level in November. As a result, as I wrote in this report, analysts expect that the Bank of England will hike rates by either 0.50% or 0.75%. It will also hint that it will continue holding rates steady in 2023.

The top FTSE 100 constituents to watch before the BoE decision will be banks like Lloyds, NatWest, and Barclays. These banks will likely do well if the BoE sounds hawkish. Banks make more money in periods of high interest rates.

FTSE 100 forecast

The 4H chart shows that the Footsie index has pulled back in the past few days. In this period, it has retreated below the important support level at £7,520, the highest level on September 13. The index has pulled back below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) is nearing the oversold level.

Therefore, I suspect that the index will retreat for a while and then resume the bullish trend. If this happens, the next key level to watch will be at £7,600.

The post Is the FTSE 100 a buy ahead of BoE and UK CPI data? appeared first on Invezz.

You Might Also Like
  • Straddle vs. Strangle Options Strategy
  • Justin Wolfers: “Inflation has clearly peaked”; CPI at 7.1%
  • Tesla’s stock price crashes, down -9% on missing 4Q2022 consensus
  • Meta reiterated a ‘buy’ after CEO’s remarks at the DealBook Summit
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Why did Rivian pull the plug on its agreement with Mercedes-Benz?
next post
Former FTX CEO Sam Bankman-Fried arrested in the Bahamas

You may also like

Cramer’s top three bank stocks for 2023

December 21, 2022

Coinbase halts NFT transfers for iOS users after Apple blocks...

December 2, 2022

Will house prices fall as a recession threatens? A Report

January 16, 2023

Apple stock claims a near 2-year low, and sellers still...

December 28, 2022

St. Louis economists ask if the Great Moderation is over

January 16, 2023

Everything You Need to Know About Options Assignment Risk

February 21, 2023

Civil Rights Groups Say Elon Musk to Blame for Twitter...

November 23, 2022

3 tech fallen angels that could go bankrupt in 2023

January 3, 2023

Wise share price outlook as revenue and profits jump

November 29, 2022

Delta Neutral Trading: What Not to Do and How to...

April 2, 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

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

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

      June 27, 2024 2,765 views
    • 2

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

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

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

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

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

      June 27, 2024
    • 2

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

      August 9, 2024
    • 3

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

      June 25, 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

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    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

    ECB Governing Council Member Klaas Knots:...

    November 28, 2022

    3 tech fallen angels that could...

    January 3, 2023

    PayPal partners with MetaMask to allow...

    December 14, 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