FTSE 100 Live: Index Snaps 4-Week Losing Streak With 2.66% Weekly Jump on Rate Hike Hopes

The FTSE 100 is closed today as the London Stock Exchange is observing the Spring Bank Holiday. Regular trading will resume tomorrow. 

The index ended a four-week losing streak after data released weakened expectations of a Bank of England rate hike, giving relief to investors. The index ended 0.22% higher at 10,466.26 on Friday, with a 2.66% gain for the week. The midcap FTSE 250 closed up 0.96%.

Brent crude futures, the global oil benchmark, were last down by 4.68% at $98.96 a barrel. Despite sliding below recent peaks above $100 a barrel, Brent’s level is higher than it was before the start of the war in late February.

The UK markets have bounced back recently, more on the expectation of delayed BoE rate hikes than on robust economic growth. Weak retail sales and fading business activity have raised hopes that the policy makers would slow further tightening.

UK retail sales declined by 1.3% in April, while S&P Global's flash UK composite PMI slipped into contraction mode in May to 48.5. Inflation's continued rise and slow growth remain a drag on the UK economy, analysts said.

Geopolitical risks continue to be a focus as uncertainty over the US-Iran talks could affect oil prices and inflation figures. But Prime Minister Keir Starmer's government has been under pressure due to political uncertainty and poor local election results.

Boosting sentiment on the corporate side of the equation, Bodycote shares jumped as it has been offered $1.52 billion to be taken over by Apollo. Investors are now keenly focused on the upcoming earnings reports and data on US core PCE inflation for additional buying signals.

Kingfisher is set to release its first-quarter update on Tuesday, while Pets at Home and HICL Infrastructure will publish annual results on Wednesday. Johnson Matthey and SSE are scheduled to provide updates on Thursday. Analysts at Hargreaves Lansdown noted that SSE appears “relatively immune” to ongoing Middle East-related disruptions. 

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Technical Structure

FTSE 100 remains in a broader uptrend but remains below the 100- and 200-day moving averages, suggesting weakness. The index stands around 10,466 as it bounced above the 0.618 Fibonacci retracement at 10,457.

Initial resistance is at 10,670, aligned with 0.786 Fibonacci retracement. A break above this level could advance the index toward the recent swing high of 10,940. On the downside, support is seen near 10,307 and 10,158, where the 50-day and 100-day moving averages are located.

The RSI is at 55.38, which suggests decent momentum but not overbought. The short-term bias is mildly bullish, as long as the FTSE 100 continues to stay above the 10,300 support zone.