FTSE: Climbs to 6,765.94 +64.35 (0.96%)

• The FTSE closed 1 percent higher to 6,765.94, +64.35.
• The biggest winner was GlaxoSmithKline, adding 4 percent.

Global growth worries, as reflected in the oil price’s drop to a 15-month low, abounded earlier in the week, although there has been a nice rise on stocks on Wednesday in anticipation of a dovish hike from the Fed. FTSE managed to rise on Wednesday ahead of the much-anticipated FOMC. The Pharmaceutical company GlaxoSmithKline PLC  led the heavyweight gainers, with its shares rising nearly 7% on the news that it will create a consumer-health-focused joint venture with U.S. drugmaker Pfizer Inc.

Oil's rise also supported to the FTSE 100, with industry heavyweights Shelll and BP climbing over 1 percent as crude prices bounced back following steep losses on oversupply worries. In the red was postal services group Royal Mail, down 2.4 percent after weak results from FedEx in the U.S. dented sentiment across the post and logistics sector. Following ASOS's profit alert on Monday shook the retail sector, FedEx provided the latest window into the effects of weaker consumer sentiment impacting not only retailers but also companies charged with delivering purchases.

Adding to the optimism, there was some upbeat news on the global trade front as Treasury Secretary Steven Mnuchin said the U.S. and China will meet in January to try to broker a cease-in the continuing trade dispute, in an interview with Bloomberg on Tuesday. Investors will look to the Fed to see if the central bank will try to normalise policy without choking off growth. The central bank is widely expected to hike rates, but there have been plenty of calls for it to hold off. Among them is President Donald Trump, who again urged the Fed Tuesday to hold off on hiking rates.

UK CPI cools and BoE on standby

Inflation in the U.K. cooled in November, bringing the annual rate closer to the Bank of England’s 2% target. The central bank indicated that it is ready to raise interest rates three or more times in the next couple of years to contain price growth, assuming Britain’s exit from the European Union in March goes smoothly. As for Brexit front, the government said it would implement plans for a no-deal scenario in full, even as Prime Minister Theresa May is set to bring her divorce deal back to the parliament for a vote in mid-January.

FTSE levels

FTSE broke a series of consecutive negative closes and closed in on the 50 4hr SMA located at 6796 above the pivot of 6784. The index was otherwise headed for the 50% fibo of the 2015-2018 range. However, RSI has now recovered into a more neutral setting as price takes on the 10-D SMA. Bulls look to test the 200 hr SMA ahead of R2 located at 6807 ahead of R3 located at 6850. Bears can target a break of the 50% fibo at 6697 and head to S2 located down at 6607 ahead of 6414 as the 61.8% fibo.

Support levels: 6706 6648 6605

Resistance levels: 6807 6850 6900