Categories: Market Overview

FTSE100 leads recovery but enters turbulence zone

The UK stock market is closer5 to a full recovery from the recent slump than its counterparts in the US or continental Europe. The FTSE100 at 7640 is now only 0.7% below its peak in February. By comparison, S&P500 at 4500 is 6.6% below its record level, while EuroStoxx50 is now 10.5% below its peak in November 2021.

The more confident rise of the British stock market is due to the heavyweight of overseas mining companies on the back of the commodity price boom and the recovery of the banking sector.

However, the FTSE100 runs the risk of being in a turbulence zone at this altitude. Since 2018, the index has reversed to a sharp decline in the 7700-7800 area, never managing to consolidate above. This time, a consolidation above the 7,800 area could attract massive buyer demand, confirming the overcoming of the curse of this height.

On the other hand, the bears have enough reasons to increase the pressure from these levels, from the loss of growth momentum by the economy to the need for leading central banks to tighten monetary policy.

The latter factor represents the most significant risk, as stock market successes and the pound’s weakness could be essential proxies for more aggressive monetary policy.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

Share
Published by
The FxPro Analyst Team

Recent Posts

Dollar: Slowing Momentum, Same Direction

The dollar has paused its strengthening, as weaker-than-expected inflation data reduces fear of future Fed…

1 hour ago

Bitcoin Fell Back to Local Support

Bitcoin finds support near the 50-day moving average, but further declines in the stock market…

3 hours ago

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

3 days ago

USDCHF Wave Analysis 20 December 2024

- USDCHF reversed from resistance zone - Likely to fall to support level 0.8860 USDCHF…

3 days ago

The US dollar ends the year on a strong note

The US dollar is at two-year highs. Factors such as changes in the Fed's monetary…

3 days ago

How deep will crypto dive?

The crypto market is experiencing a decline, with a potential further drop in value. Bitcoin…

3 days ago

This website uses cookies