FTSE 100 FINISH LINE 3/10/25
The FTSE 100 in London reached a new intraday high on Friday, driven by advances in the financial and mining sectors, as rising hopes for an interest rate reduction by the Federal Reserve lifted sentiment in global markets. Financial stocks stood out on both indexes, with the banking sector gaining 1.4% and investment banking shares increasing by 1.3%. Precious metal miners Fresnillo and Endeavour Mining were among the top performers on the FTSE 100, each rising over 2% due to higher gold prices. Although the benchmark index reached an intraday high on Thursday, it ultimately lost ground to close in the red. The blue-chip index's relative lack of technology exposure prevented it from fully benefiting from the tech-driven rally that lifted U.S. stocks to new highs in the prior session.
Due to the ongoing U.S. government shutdown, the highly awaited jobs report, which was set to be released on Friday, wasn't released today. Traders are increasingly anticipating a nearly guaranteed Fed rate cut later this month in light of disappointing private payroll figures released earlier this week. In the UK, a survey revealed that business activity grew at its slowest rate in five months in September, as both companies and consumers postponed significant spending decisions while awaiting potential tax increases in the forthcoming November budget. Economists suggest that Finance Minister Rachel Reeves may need to raise taxes or cut spending in the upcoming annual budget.
Shares of the technical products and service distributor Diploma have increased by as much as 3.93%, reaching 5470 p, making them one of the top gainers on London's FTSE 100. Brokerage firm RBC has upgraded its rating for the stock to "Outperform" from "Underperform." RBC has also raised the price target to 6,000 p from the previous 4,500 p. The brokerage anticipates that DPLM will exceed organic revenue growth predictions and expects earnings per share (EPS) upgrades of 20% by 2028. Out of the 14 analysts covering the stock, 10 have assigned a "buy" or better rating, 3 have a "hold" rating, and 1 has given it a "sell" rating; the median price target is 5,800 p, according to data compiled by LSEG. As of Thursday's close, the stock has appreciated by 23.07% so far this year.
Shares of J D Wetherspoon dropped by 4.6% to 634.5 pence. The stock was the top loser on the FTSE mid-cap index. The company stated, as previously mentioned, that increases in national insurance and labour costs will result in an additional £60 million ($80.63 million) annually, along with a £7 million uptick in energy expenses. It also noted that the new packaging tax (the 'extended producer responsibility' levy) will cost £2.4 million this year. The Chairman remarked, "Cost increases such as these will certainly contribute to underlying inflation in the UK economy." The board anticipates a "reasonable outcome" for the financial year. Year-to-date, including the losses from this session, the stock has risen by approximately 11%.
Technical & Trade View
FTSE Bias: Bullish Above Bearish below 9000
Primary support 9000
Below 8900 opens 8600
Primary objective 9600
Daily VWAP Bullish
Weekly VWAP Bullish
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% and 72% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
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!