Reuters: Hot Stocks: FTSE 100 up from 4-week low, charts more supportive

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FTSE 100 up from 4-week low, charts more supportive Jun 4th 2013, 15:43 Tue Jun 4, 2013 11:43am EDT * FTSE 100 index up 0.5 percent * 6,640 seen as key chart level on the upside - Barclays * Wolseley falls after quarterly results By Toni Vorobyova LONDON, June 4 (Reuters) - Britain's top share index recovered from a four-week low on Tuesday, bouncing up from technical support levels and cheered by expectations that Federal Reserve stimulus may remain in place for a while longer. With little fresh data, the focus remained on news that the U.S. manufacturing sector shrank unexpectedly last month. After an initial sell-off on Monday on concern over future demand from the world's biggest economy, sentiment towards equities shifted overnight, with some taking the view that the economic weakness could discourage the Fed from ending quantitative easing early. The FTSE 100 index of British blue-chip companies, which derive around a quarter of their sales from the United States, closed up 33.46 points, or 0.5 percent, at 6,558.58. With the focus on U.S. monetary policy, markets were expected to remain volatile ahead of a series of speeches from Fed officials in coming days and key jobs data on Friday. The FTSE 100 had fallen more than 5 percent in the previous 10 sessions, retreating from a 13-year peak, before finding support at the 40-day moving average on Monday, when it closed down, but above a session low. "It's rallied back up pretty much every sell-off," said Jordan Hiscott, trader at Gekko Global Markets. "The volatility will continue, while you've got markets in a two-way battle, with QE pushing the market up and with bears betting the market will fall 15-20 percent as soon as the QE stops." The sell-off had pushed its 7-day relative strength index (RSI) out of the overbought territory above 70 and down to the upper boundary of the oversold area below 30. Among individual stocks, GKN, one of the cheapest companies in the FTSE 100 on a share-price-to-earnings basis, was the top riser, up 5.1 percent after UBS said the company was now "better positioned strategically and operationally". Wolseley, one of the most expensive shares in the index at 18.6 times current earnings, fell 6.3 percent after posting below-forecast third-quarter results. "There is a lot of good news already in the share price; take profit," Andy Brown, analyst at Panmure Gordon, wrote. (Additional reporting by Atul Prakash; Editing by Jeremy Gaunt) Link this Share this Digg this Email Reprints

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