Business Magazine

Next Stop 6000 for the FTSE?

Posted on the 07 February 2015 by Andyepb

Home > Quantitative Easing, Stock Market > Next stop 6000 for the FTSE?

Next stop 6000 for the FTSE?

Next stop 6000 for the FTSE?
Probably thanks to Eurozone quantitative easing (QE, or money printing) the pre-Christmas dip did prove to be a short-term panic as I suggested it might be in my last post. The FTSE regained some lost ground against the Dow, though in the last few days it has hit strong resistance again just below 6,900 while the Dow carried on rising. Some commentators seem the think that the FTSE is about to break through the 7,000 level, but I think this unlikely. The resistance at 6,900 seems very strong to me and I believe that a more likely scenario is a dip below 6,000 soon so the the index can take a run-up at the 7,000 mark, breaking through in the second half of this year. I think that Greece is unlikely to get agreement with the EU on its desired debt relief and the threat of default and subsequently being kicked out of the Eurozone will suppress stock markets. I am hoping for another of my peak signal patterns over the next few weeks, as conditions seem ripe for it, and looking back at previous long-term sideways movements such as we have had recently, it is quite common for the FTSE to dip significantly before making further progress. If the Greece question can be resolved one way or the other, then the ECB QE money could boost the FTSE, and, as this article suggests, a Greek default could further boost stock markets by transferring money from Eurozone periphery government bonds to the stock market due to fear of default contagion, so I still think that the prospects for the FTSE are pretty good in the medium term. The fact remains, however, that the Western world is bankrupt and there will be a reckoning at some point!

Next stop 6000 for the FTSE?
ECB QE has not proved quite such a boon for the Dow as it has boosted the dollar relative to the euro and thereby made US companies less competitive. If a Greek default suggests that Europe is about to disintegrate though, I expect the Dow will recover.

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • The Verdi Project: Stiffelio

    Verdi Project: Stiffelio

    Verdi battles the censors with an opera about religion. by Paul J. Pelkonen Preacher man: José Cura as Stiffelio at the Metropolitan Opera.Photo by Ken Howard... Read more

    The 22 April 2018 by   Superconductor
  • I Still Managed To Shop These In Mauritius!

    Still Managed Shop These Mauritius!

    Travelling to Mauritius? Thinking of what you should buy? Here is a list that SSU contributor Sakshi bought and she has some honest take on Mauritius markets.... Read more

    The 22 April 2018 by   Shoppingaholic
  • Food Review: Katz’s Delicatessen, New York City

    Katz’s katzenjammer sandwich Katz’s deli in the lower East side of New York comes recommended by most guidebooks and travel websites, and someone we know said... Read more

    The 22 April 2018 by   Emma
  • Healthy Lunch Salad!

    Healthy Lunch Salad!

    Yesterday, I invented this lovely healthy lunch or dinner. I even eat it like breakfast this morning! So good, So yummy! You can eat it just like this but I wil... Read more

    The 22 April 2018 by   Sophies Foodie
  • Skincare Empties #8

    Skincare Empties

    Hi All,According to the Instagram polls am posting an empties post first. I am so into powder cleansers that I ended up using two of them both are my favorites. Read more

    The 22 April 2018 by   Skincarevilla
  • The Most Important Mission Of The Modern Mormon Church

    Most Important Mission Modern Mormon Church

    Previously: A Plea Unto Every Latter-day Saint On the shelf directly behind me is a hefty Dictionary of Early Christian Beliefs, which I like to browse now and... Read more

    The 22 April 2018 by   Rockwaterman
  • 6 Ways To Be A Business Leader As Well As A Developer

    Ways Business Leader Well Developer

    Almost every entrepreneur starts their journey by developing a solution, based on their idea of a new technology or required service. These idea and developer... Read more

    The 22 April 2018 by   Martin Zwilling