FTSE 100, CAC 40 and MIB 40 Forecast – European Markets Showing Hesitation in Larger Uptrend

FTSE 100 Technical Analysis

The FTSE 100 has pulled back just a touch during trading here on Tuesday as we continue to consolidate overall. The major culprit out there, as far as underperformance is concerned, is BP or British Petroleum, which tumbled over 4% after it paused its share buyback program.

The offset is, of course, a rally in Barclays, which reported a 13% jump in annual profit and hiked its bonus pool to a 12-year high, so it is cushioning the blow a little bit. At this point, I’m watching the 10,000 level on the floor for the trend, but I do believe there’s plenty of support near the 10,250 level. The 10,500 level above continues to be a ceiling. I think this is still a buy on the dip index, though.

CAC 40 Technical Analysis

The CAC 40 in Paris is struggling a little bit to hang on to gains for the session, but its luxury sector did rebound during the trading session, and that, of course, has helped quite a bit. Kering surged over 8% during the session, and that lifted LVMH and Hermès.

So, more of a risk-on type of proposition in Paris today, but we still have a major psychological barrier in the form of 8,400 that I think is going to take something special to break above.

MIB 40 Technical Analysis

Finally, in Milan, we have the MIB rallying with STMicroelectronics, really charging forward with its benefit in AI partnerships, and a slight cooling in European bond yields has made this index a little bit more attractive as well. 46,000 will be support underneath, with the 50-day EMA underneath there near the 44,900-level offering support also. I am a buyer of dips in Milan.