FTSE 100 Holding on to Shifting Common Assist After Surprising UK Knowledge

FTSE 100 Value, Information and Evaluation:

• UK GDP information misses already dire expectations.
• Brexit talks subsequent Monday might make or break UK sentiment.

FTSE 100 Promote-Off Pauses for Breath

The FTSE 100 has misplaced practically 8% this week and given again three weeks’ value of beneficial properties as danger markets across the globe turned bitter.Fears that the US might even see a second spherical of the COVID-19 virus prompted the Dow Jones to fall by over 1,800 factors at one stage on Thursday, dragging world indices decrease.

Along with the worldwide risk-off transfer, the newest UK GDP figures will even weigh on the UK huge board. UK GDP fell by 10.4% within the three months to April and by 20.4% in April alone. In response to the ONS deputy nationwide statistician for financial statistics, Jonathon Athow, ‘April’s fall in GDP is the largest the UK has ever seen, greater than 3 times bigger than final month and virtually ten instances bigger than the steepest pre-COVID-19 fall’.

British Pound (GBP) Newest: Report GDP Collapse, GBP/USD Dips

Subsequent week is pivotal for UK property with UK PM Boris Johnson assembly European Fee President Ursula von der Leyen on Monday in try to interrupt the present EU/UK commerce deadlock, whereas UK jobs information on Tuesday and the Financial institution of England MPC assembly on Thursday will even drive worth motion.

The FTSE is now making a small bounce-back off the 50-day transferring common (blue line on chart) located slightly below the 6,000 stage. This indicator held yesterday and in addition offered a further spring for the index on Might 14. If right now’s rebound proves to be greater than a lifeless cat bounce, an space of resistance between 6,202 (20-dma) and 6,233 (50% Fib retracement) ought to stem additional upside within the short-term. Assist of the 50-dma earlier than the 38.2% Fib retracement at 5,889.

FTSE 100 Each day Value Chart (October 2019 – June 12, 2020)

What’s your view on the FTSE 100 – bullish or bearish?? You possibly can tell us by way of the shape on the finish of this piece or you may contact the writer by way of Twitter @nickcawley1.