Stock indices in London rebounded from sharp losses on Thursday following the BoE's interest rates hike, however they are set to open slightly lower today ahead of the US jobs report for July at 1630 UTC+4. Today's US employment report is likely to reinforce the hawkish narrative of the Fed with the latest non-farm payrolls set to show that 193,000 new jobs were added in July. Once again it will be the wage data that will help to determine the direction of the markets. The British economic events calendar has Services PMI readings from the UK this morning.
The UK Index fell sharply yesterday as traders were awaiting the BoE's interest rate hike. The FTSE100 rebounded slightly from its strong support at 7562 however the previous support at 7625 is now acting as a resistance. The RSI looks bearish on an hourly chart suggesting downside for the next few hours.
Support: 7562 7500
Resistance: 7625 7700