- summary:
- The FTSE 100 index and the economy of the UK stares as a growing strain as commercial definitions disrupted growth momentum.
The FTSE 100 (Indexftse: UKX) index fell for the second consecutive session on Thursday, with the market’s reaction to the US car tariff. The index was traded at 8,638 points, a decrease of 0.49 %. The nine tenth companies were on the market at the time of writing this report, with BAT by -1.97 % and ROYCE by 1.35 %.
US President Donald Trump announced a 25 % tariff on car imports on Wednesday, which exacerbated fears that the war of commercial tariffs would be for a long time. The UK exported 6.4 billion pounds to the United States in 2023; The second largest market for UK manufacturers.
Therefore, the harsh tariff environment can exacerbate the pressure on the industry, which has witnessed a consecutive monthly decrease over the past twelve months, according to data from the Association of Motor Companies and Traders.
Elsewhere, UK Finance Minister Rachel Reeves warned on Wednesday that the high tariff against the United Kingdom could push the government to raise taxes- a step that could hinder economic growth plans.
Meanwhile, the pound sterling strengthened against the US dollar last month, as GBPUSD rose by 2.5 % last month and +3.4 % on an annual basis. This adds pressure on the FTSE 100 index by making UK exports more expensive. The point rises against the dollar by 0.4 % to this writing, and the continued direction will determine the gains according to the index.
FTSE 100 Festival prediction
The FTSE 100 Index Pivot brand is 8,655 points and is resistant to this level preferred to stay in control. The index is likely to decrease and find the first support at 8,615 points. However, the stretching momentum will lead to a decrease in the index to try to break 8566 support.
On the contrary, going above 8655 points will turn the momentum into the upper direction. In this case, the index is likely to fulfill the first resistance at 8,697. The breaking of this level will nullify the narration of the negative side and potentially test 8,732 points in the extension.
