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    FTSE100: Upward correction is likely to continue on 03.03.2016

    Since the opening of trading day at London stock exchange the index FTSE100 has slightly strengthened following the pattern of the Asian and American indices despite negative Chinese news. As it became known activity index of purchasing managers Caixin (PMI) from Markit Economics, indicating the state of Chinese service sector fell to (51.2 in February against the forecast of 52.6 and 52.4 in January.

    The data on Chinese economy released earlier, such as activity index of purchasing managers Caixin (PMI) in the manufacturing sector and other indices were below the forecast and the previous value.

    However, the world indices have been growing since the beginning of this week. They were supported by the growing prices of oil and commodities and positive US data.

    Negative European news convinces investors that at the meeting of ECB in March additional measure to support economic growth and inflation in Eurozone can be adopted. This fact also provided support to European indices.

    At 11:30 (GMT 2) business activity index in the service sector of the UK from Markit Economics was released. The index fell to 52.7 in February against the forecast of 55.1 and 55.6 in the previous month.

    The British Pound and the index FTSE100 fell down after the news; however, later the index has slightly grown and is now traded at the level of 6160.0 and strong resistance level.

    It seems that investors’ attention is shifting to the US data, scheduled for release from 15:30 to 17:30 (GMT 2).

    Amid positive US news released earlier, all global stock indices including FTSE100 are going up.

    In case the new data turns out to be above the forecast, the USD and stock indices will grow.

    The index FTSE100 is also supported by effective actions of the British Prime Minister, David Cameron who engineered agreement to obtain privileges for the UK in EU.

    It is worth noting that Deputy Governor of the Bank of England Mrs. Nemat Shaffik said in her recent speech before the Parliament that tightening of the monetary policy in the UK might take place earlier than expected by investors. This news is favourable for the index FTSE100, as it is a sign of improvement in the British economy.


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