FTSE 100 forecast ahead of BP, LSE, HSBC, Haleon earnings

The FTSE 100 index is hovering near the highest level in June as investors reflect on a slew of corporate earnings from some of the biggest constituents. The index was trading at £7,685 on Friday, a few points below this month’s high of £7,707.

UK mixed earnings

Many companies in the FTSE 100 index published their financial results this week. Rolls-Royce share price soared after the company’s results showed progress in its turnaround strategy. The stock pumped to the highest level in years and approached the target I predicted a few months ago here.

St James Place share price plunged by more than 15% on Thursday after the company published weak results. While its assets under management jumped, the company said that it was cutting fees. As a result, the biggest wealth manager in the UK, said that the cuts will have a £25 million impact on its profits.

NatWest was one of the biggest FTSE 100 news this week. The bank bid farewell to its chief executive as the Nigel Farage scandal escalated. In a statement, the company said that its operating profits before taxes rose to £3.58 billion from the previous £2.62 billion. The results were better than what city analysts were expecting.

Meanwhile, Shell and BP share prices retreated after the former published weaker results as crude oil and natural gas prices retreated. Other commodity companies in the FTSE 100 like Glencore and Anglo American published weak results.

FTSE banks, on the other hand, published mixed results. Lloyds Bank share price dropped after the company’s results disappointed. Barclays and Standard Chartered announced strong results and initiated share buybacks.

Looking ahead, several important FTSE 100 companies will publish their results next week. Some of the most notable ones to watch will be HSBC, BP,  Fresnillo, Haleon, Taylor Wimpey, London Stock Exchange, Smith & Nephew, WPP, and Hikma Pharmaceuticals. The index will also react to next week’s Bank of England decision.

FTSE 100 index forecast

FTSE index chart by TradingView

The FTSE 100 index has made a modest recovery in the past few days. Along the way, the shares have crossed the important 50-day moving average. The 25-day and 50-day moving averages have formed a bullish crossover pattern. At the same time, the Relative Strength Index (RSI) has flattened below the overbought level.

Therefore, the index will likely have a bullish breakout in the coming days as buyers target the psychological level at £8,000. The stop-loss of this trade will be at £7,550.