The FTSE 100 index consolidated levels during the summer months. Ahead of September, the outlook for the index remains bullish as it keeps pressuring the highs. Catalent and Pernod Ricard are in focus this week as they release the quarterly earnings.
The trading month comes to an end today – thus, summer trading is behind us. The coronavirus pandemic challenged the summer plans for many this year, but, for the stock market, it was business as usual – low volatility led to stocks remaining close to their highs.
In the United States, the main indices keep pushing to new all-time highs. The Dow Jones index futures are seen close to 35,500 at London’s opening, while the Nasdaq 100 futures are up 0.44%.
In Europe, the FTSE 100 outlook remains bullish as it pressures the summer highs. The German Dax index threatens to break above 16,000 on strong economic data less than a trading month ahead of the German election.
The stock market rally is fueled by the oil prices rally. The WTI crude oil price is about to break above $70 again as Texas oil fields are all closed due to the hurricane Ida hitting land.
Gold still struggles at $1,800 resistance, while silver is up 0.77% at the time of writing.
Economic Events to Consider Today
The French Preliminary GDP is already out today. The data came better than expected, triggering a small rally in the euro pairs – EUR/USD climbed above 1.18 while EUR/JPY pressures the 130 resistance area.
Inflation data in the Eurozone is due later in the trading day. The market expects the Core CPI Flash Estimate to reach 1.5% YoY, more than double the previous release.
The Canadian GDP and the Chicago PMI in the United States will be the highlight of the North American session. In Canada, the GDP is expected to grow 0.7% on a monthly basis, while the Chicago PMI is expected to slow down to 68.
Today’s Markets to Watch
Today’s markets to watch are FTSE 100, Pernod Ricard, and Catalent.
FTSE 100 Outlook
The FTSE 100 outlook remains bullish as it keeps pressuring the highs. Since May, investors have bought into support seen at 6,800 while the 7,200 level acted as resistance. From a technical perspective, the market seems to form a continuation pattern. A daily close above resistance is a sign of further strength.
Pernod Ricard is scheduled to release its quarterly earnings tomorrow. The stock price is at dynamic support given by the lower edge of a rising channel and the market conditions remain bullish. Only a drop below EUR 160 would shift the bullish bias.
Catalent is expected to release its quarterly earnings this week, too. The market expects EPS of $0.68, 57.62% more than the same period last year. The technical perspective is bullish as the price action resembles an ascending triangle pattern, with the measured move pointing to a target well above $150.
Winners and Losers
The U.S. equities keep their bullish bias; the U.S. dollar looks weak.