UK FTSE 100 (.FTSE) rallies as coronavirus cases slow and TUI takes off
The FTSE 100 has followed global stock markets higher as the number of new coronavirus cases in China slowed, while travel group TUI (TUI) soared on strong January bookings.
The UK blue-chip index jumped 59 points, or 0.8%, to 7,506 after US and Asian markets closed higher overnight, despite the death toll from coronavirus rising above 1,000 and the number of infected people pushing past 40,000.
Professor Gabriel Leung, head of public health at Hong Kong University, warned the flu-like virus ‘could infect 60%’ of the world’s population but markets were buoyed by a slowing infection rate and the assumption that central banks would step in if markets come under pressure.
‘The rate of new cases is slowing, which is the most important thing,’ said Neil Wilson, chief market analyst at Markets.com.
‘Following the selling since the virus hit the headlines it’s now about the pace of acceleration or deceleration in the rate of new cases, as well as the longevity of the economic impact.’
The FTSE 100 gained a further boost from soaring Tui shares, which rallied 11.8%, or 101p, to 957p. Despite the travel agent being affected by the sell-off in travel and leisure stocks caused by the coronavirus outbreak, it reported its best ever January for booking as its benefited from the collapse of Thomas Cook.
The FTSE 250 ‘mid-cap’ index followed the main market up, gaining 0.4%, or 95 points, to trade at 21,588.
William Hill (WMH) was the biggest riser, up 4% at 185p per share, after announcing a deal with the CBS TV network in the US. Jefferies analyst James Wheatcroft said it was ‘a major step forward’ for the bookmaker in the US market.
On the small cap index construction group Kier (KIE) continued to rally on yesterday’s government green light to the HS2 high speed rail project, rising 9.6%, or 10p, to 115p.
The pound nudged higher against the dollar to $1.293 after the Office for National Statistics reported UK growth of 1.1% year-on-year in the fourth quarter, ahead of expectations of 0.8% and in line with third quarter growth.
Technical Indicators
Overall, the bias in prices is: Sideways.
The projected upper bound is: 7,685.14.
The projected lower bound is: 7,317.06.
The projected closing price is: 7,501.10.
Candlesticks
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 67.6837. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.93. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 30 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 48. This is not a topping or bottoming area. The last signal was a buy 5 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.
Rex Takasugi – TD Profile
FTSE 100 INDEX closed up 52.560 at 7,499.440. Volume was 0% below average (neutral) and Bollinger Bands were 18% wider than normal.
Open High Low Close Volume___
7,446.8807,529.5407,446.8807,499.440 697,683,328
Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 7,431.80 7,477.24 7,364.65
Volatility: 17 16 14
Volume: 675,934,016 664,527,040 713,619,776
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
FTSE 100 INDEX is currently 1.8% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .FTSE at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .FTSE and have had this outlook for the last 10 periods.
