- The UK's FTSE was taken off its retail sector lows on Thursday when oil rallied, leading the index into a positive close for the day.
- The top flight index was adding 0.52% or 36.24 points to 6,942.87.
- WTI capped at the 50-D SMA, daily doji in the making
As we move towards the final hours on Wall Street, casting minds over to European markets, UK shares were weighed earlier due to poor updates from the likes of Marks & Spencer, Tesco and Halfords - (Marks & Spencer ended lower even after maintaining full-year guidance, although the retailer did post a 3.9% decline in third-quarter group total revenue to £3.04bn).
However, oil climbed higher on Thursday helping the index along and also a softer pound sterling helped the FTSE recover after British secretary of state for business Greg Clark cautioned that crashing out of the European trading bloc without a deal would be a "disaster" for the UK. Clark, who was speaking on BBC radio argued that there was no majority in parliament for a no-deal Brexit. At the start of the day, the markets were cautious over the failed US government shutdown talks and the lower-than-expected Chinese inflation data overnight.
Meanwhile, on the domestic front, the latest figures from the British Retail Consortium and KPMG revealed the worst Christmas for the sector in a decade last month amid worries about Brexit and weak consumer confidence. Sales were flat in December compared to a 1.4% increase in the same month a year before. The end result was marking the worst performance since 2008. "The worst December sales performance in ten years means a challenging start to 2019 for retailers, with business rates set to rise once again this year, and the threat of a no-deal Brexit looming ever larger," Helen Dickinson, chief executive of the BRC said.
Best and worst performers
The top three performers in the index were Fresnillo (FRES) 949.60p 3.06%, followed by SSE (SSE) 1,151.50p 2.45% and Intertek Group (ITRK) 5,062.00p 2.18%. The worst performers were BHP Group (BHP) 1,616.60p -5.32%, followed by Burberry Group (BRBY) 1,737.50p -2.93% and Paddy Power Betfair (PPB) 6,621.00p -1.77%.
FTSE levels
The index has added to the consecutive daily gains above the 23.6% retracement Fibo of the early summer 2018 decline. The 50-D SMA and confluence of the daily pivot are now in the rearview mirror, likely to support on pull-backs. The 7000 psychological level remains in play. The 38.2% Fibo at 7041 guards a run to the 50% Fibo of the same range that is then located at 0.7204. Daily MACD is higher again while RSI still has room to go on the upside.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD recovers to near 0.6450, shrugs off mixed Australian jobs data
AUD/USD is rebounding to near 0.6450 amid renewed US Dollar weakness in the Asian session on Thursday. The pair reverses mixed Australian employment data-led minor losses, as risk sentiment recovers.
USD/JPY bounces back toward 154.50 amid risk-recovery
USD/JPY bounces back toward 154.50 in Asian trading on Thursday, having tested 154.00 on the latest US Dollar pullback and Japan's FX intervention risks. A recovery in risk appetite is aiding the rebound in the pair.
Gold rebounds on market caution, aims to reach $2,400
Gold price recovers its recent losses, trading around $2,370 per troy ounce during the Asian session on Thursday. The safe-haven yellow metal gains ground as traders exercise caution amidst heightened geopolitical tensions in the Middle East.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price was not spared from the broader market crash instigated by a weakness in the Bitcoin market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Investors hunkering down
Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus after witnessing significant market movements in recent weeks.