FTSE 100 FINISH LINE 20/11/25
London's stock markets rebounded on Thursday, poised to end their losing streak as financial and defence shares spearheaded a recovery, fuelled by a global surge following Nvidia’s optimistic outlook on AI growth. The FTSE 100, Britain’s blue-chip index, climbed 0.5% on track to break its five-day slump. Meanwhile, the FTSE 250, which focuses on domestic companies, also edged up, aiming to put an end to its six-day slide. Global markets rallied in relief after Nvidia’s upbeat forecast eased concerns over lofty valuations tied to the AI boom. Analysts had recently expressed caution about whether the AI frenzy was outpacing market fundamentals. The European technology index rose 0.8%, while tech stocks in London gained 0.4%.
Defence stocks made a strong comeback, rising 2.7% after experiencing a dip in the previous session. Industry giants Rolls-Royce and BAE Systems both gained over 2.5%, boosting sentiment in the sector. Adding to the positive momentum, UK investment banking stocks climbed 1%, while life insurance companies advanced 0.8%. Pharmaceutical powerhouse AstraZeneca saw its shares rise by about 1% following U.S. approval of its drug to manage the growth of non-cancerous tumours, lifting the pharma sector by 0.5%. Health and safety technology firm Halma soared an impressive 12.4%, reaching an all-time high as it raised its annual revenue forecast, driven by strong demand from U.S. data centres. Similarly, Games Workshop, known for its miniature war games, skyrocketed 11.2%, achieving a record high thanks to a promising half-year outlook.
The UK retail sales data set to be released on Friday will be of interest to investors as they assess the country’s economic situation, following this week’s report indicating a decrease in inflation for the first time in five months. In other news, Johnson Matthey's shares dropped by 5% after the company announced that its finance chief, Richard Pike, would be transitioning to the role of chief operating officer. Additionally, sportswear retailer JD Sports saw a 3% decline in its stock after predicting that its annual profits would land at the lower end of market forecasts.
TECHNICAL & TRADE VIEW - FTSE100
Daily VWAP Bearish
Weekly VWAP Bullish
Above 9714 Target 9813
Below 9608 Target 9410
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Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!