Indices Update: FTSE 100 Climbs on BP’s Strong Earnings Report

Global Indices Update: FTSE 100 and CAC 40 surge on strong earnings, while Nikkei 225 remains subdued, signaling potential market shifts.

In today’s global market update, the FTSE 100 surged, driven by better-than-expected earnings from BP, while the CAC 40 continued its upward trajectory. However, the Nikkei 225 remained subdued, hinting at a potential interim top formation.

FTSE 100 Rallies on BP’s Strong Earnings

The FTSE 100 made significant gains, breaking out of its recent sideways trading range, fueled by impressive earnings from oil giant BP. The company announced plans to repurchase $3.5 billion in shares, further bolstering investor confidence. As a result, the index climbed to 7,710 during out-of-hours trading, with targets set on surpassing July and September highs at 7,723 to 7,747. Support levels lie around 7,690, with minor support expected between the 1 and 5 February highs at 7,674 to 7,669.

Indices Update: FTSE 100 Climbs on BP’s Strong Earnings Report

CAC 40 Resumes Upward Trajectory

The French CAC 40 index resumed its ascent, buoyed by strong earnings and positive momentum from Chinese and US markets. Investors are eyeing the December peak at 7,653, with the index’s record high at 7,704 back in sight. Minor support is anticipated around Monday’s 7,618 high and along the January-to-February uptrend line at 7,600.

Nikkei 225 Remains Subdued

Meanwhile, the Nikkei 225 displayed signs of a potential interim top formation as it retreated to the 36,000 zone. Tuesday’s slip below this year’s uptrend line at 36,230 suggests a revisit to the late January low at 35,686. Analysts speculate that another downward leg may follow the recent upward correction, potentially reaching the mid-January low at 35,312. Investors will maintain a bearish outlook until the closing basis surpasses last week’s high at 36,511, with attention focused on the January record high at 37,003. Resistance levels are observed along the breached 2024 uptrend line, now acting as a resistance line at 36,230.

In summary, the global indices witnessed mixed movements. The FTSE 100 and CAC 40 showed resilience, driven by strong corporate earnings. At the same time, the Nikkei 225 remained subdued, hinting at potential downward pressure in the near term. Investors continue to monitor developments closely amidst ongoing market volatility.

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