FTSE treads water before PMI data. Brent strikes $75.00
FTSE looks to PMI data
The FTSE along side European stocks are swimming stroke , despite a stronger finish on Wall Street. Federal Reserve System Chair Jerome Powell reassured the markets over inflation and monetary policy, calming market nerves.
Markets are beginning to stabilize after the Fed’s hawkish turn last week. Meanwhile tensions between US and China rose after a US sailed through the Taiwanese straight.
PMI data are going to be focused . UK PMI data is predicted to point out that the manufacturing sector continued expanding at a powerful pace in June at 64, although just down slightly from 65.9 in May. The services sector PMI is forecast at 62.8, marginally down from 62.9 in May.
Where next for the FTSE?
The FTSE broke below its ascending channel at the top of last week. The index spiked to a coffee of 6950 below pushing back over 7000 key psychological level and finding support on its 50 sma at 7030.
The index continues to increase the rebound today with the RSI supportive of further upside. Buyers could look towards resistance at 7120 high June 2 before 7170, the confluence of the lower band of the ascending channel and June 10 high.
The 50 sma could offer support at 7030. an opportunity below this level could negate the near term up trend. it might take a move below 6950 for the bears to realize traction.
Brent hits $75.00
Oil is pushing higher as rising fuel demand drained inventories.
API data revealed 7.1-million-barrel draw, well before the three .6 million forecast, this comes following an 8.5 million draw last week.
Fuel demand has been boosted by key markets like US, China and Europe reopening their economies.
EIA inventory data is due later today.
OPEC+ will meet to debate output next week and will look to boost production.
Where next for Brent?
Brent trades at multi-year highs and hits $75.00. it’s attempting to interrupt out above its ascending channel within which it’s traded since late March.
The RSI is heading into overbought territory which warrants caution for further bullish bets. A period of consolidation or a pull back might be on the cards.
A meaningful give way $75 could see fresh multi year highs achieved, with buyers looking towards $80 round number and psychological level.
It would take a move below $71.50 to negate the near-term uptrend. A move below 65.00 could see sellers gain traction.