FTSE 100 Analysis 26th 2009 - After The Shock And Awe

The FTSE 100(UKX) lost 170 points in one day as it was hit by a financial tsunami, headline shares ended an interrupted session sharply lower, as concerns over Dubai's financial well-being reverberated around the world, with banking issues proving particularly vulnerable.

US markets were closed today for the Thanksgiving holiday.

There were technical problems at the London Stock Exchange throughout the majority of the day.

The final deliberations from Ofwat on water charges over the next five years gave suppliers a boost, seen as more generous than many had feared, and also provided the only blue on the main board.

London Stock Exchange was a major casualty, down 60p at 754.5p, investors rattled by the knowledge that Borse Dubai holds a 20% stake.

Banks, already under pressure as the Walker Review on the industry proposed swingeing changes to boardroom structures to improve accountability, were also sapped by the Dubai news as concerns mounted across the world about loan exposure.

Weaker metals prices and growing concerns about global economic recovery turned commodity issues sharply lower.

Crude eased below $77 a barrel on demand concerns and with with investors turning to the dollar as a flight

Amongst the retailers, supermarket operators were under pressure on margin worries, as the pre-Christmas battle for sales hotted up.

Technical Outlook

I have attached a weekly chart of the FTSE 100(UKX) which illustrates that the up trend is still intact until the upward sloping trend line is negated and we trade outside the weekly candle on 13th November.