- FTSE100 index closed with a 0.50% gain on the day.
- Investors are eying the earning reports of tech giants.
- Russia’s resilience to gas supply may keep stocks under pressure.
On Wednesday, the FTSE 100 index ended higher as US stocks rose after falling on Tuesday. Meanwhile, investors look for more high-tech earnings, including from Facebook’s meta-platforms, after the market closes.
FTSE Stock Market
A look at the blue-chip index in London shows it closed up 39.42 points, or 0.5%, at 7425.61, below the daily high of 7458.24 but above the daily low of 7344.89.
Despite a string of mixed gains and increasing uncertainty, Senior Market Analyst Craig Erlam of OANDA UK and EMEA noted: “We are seeing some positive markets on Wednesday.
Investors will continue to focus on the earnings season despite several other factors that have dominated market sentiment for several months. Although things seem to be going well so far, it is apparent there is still a long way to go, which explains why we haven’t seen the recovery we would expect.
As a consequence of Putin’s decision to change payment terms, you can understand why Russia would cut off gas supplies to Poland and Bulgaria if they refused to pay in rubles. Others may see this as a warning not to follow suit, but if they do, then the standoff could hurt energy prices.
As the EU is heavily reliant on Russian gas, it will continue to have a chilling effect on European stock markets. Since the Kremlin stepped in, the risk of using gas as a weapon is much higher now, and it could pose a severe economic threat to the EU.
FTSE100 technical analysis:
The FTSE100 index price wobbles around the 20-period SMA. The index looks positive and may post the gains beyond the 20-period SMA. The next upside targets are 7475 ahead of 7500.
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