FTSE 100 Hits Another Record High

FTSE 100 Reaches New High as Resilient Earnings Fuel Sentiment

• FTSE 100 records another fresh all-time high as resilient earnings boost UK equities
• BT Group PLC, Persimmon and BP lead gains

FTSE 100 Boosted by Upbeat Earnings

The FTSE 100 has reached a fresh all-time high of 7934.3, bolstered by upbeat earnings and renewed optimism of a near-term Fed pivot. Following the release of record Q4 2022 profits for oil giants BP and Shell, the UK blue-chip index opened higher, swiftly rising above prior psychological resistance at 7900.

With UK housebuilder Barratt developments reporting a 15.9% rise in half-year profits, the NIESR (National Institute of Economic and Social Research) adding to the positive boost in sentiment by suggesting that the UK may be able to avoid a severe recession.

Since a technical recession is defined as two consecutive quarters of contraction, Friday’s GDP data may serve as an additional catalyst for price action.

DailyFX Economic Calendar

Meanwhile, after UBS followed JP Morgan in upgrading the target price for BT Group PLC (from 130 – 135P), the telecommunications company is currently trading 3.66% higher on the day, leading FTSE gains.

Source: Refinitiv

Upcoming Earnings: 09 February 2023 (9.00am GMT)

• AstraZeneca PLC – Q4 2022 earnings release
• British American Tabacco PLC – Full year (2022) earnings release
• Unilever PLC – Full year (2022) earnings release

FTSE 100 Technical Analysis

After rising above the 2018 prior all-time high of 7903.5 in Friday’s session, FTSE prices rose slightly before peaking at a level of 7906.58.

With the release of January US NFP (non-farm payrolls) highlighting an overly tight labor market, expectations of further Fed tightening limited gains, driving prices lower.

FTSE 100 Weekly Chart

Chart prepared byTammy Da Costausing TradingView

While market participants remained cautious at the weekly open, FTSE prices eased back below the January high of 7875.58, a close around 7836 limited further declines. As corporate earnings continue to be released throughout this week, a move below 7875 could fuel bearish momentum back towards 7800.

FTSE 100 Daily Chart

Chart prepared byTammy Da Costausing TradingView

— Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707