FTSE 100 started higher after the ECB announced a bond-buying program up to 750 billion in an emergency move to offset the coronavirus impact. ECB will buy company and government debt across the eurozone.
The record bond issuance by governments sends yields sharply higher. The monetary and fiscal stimulus from countries across the globe failed to calm investors fears who sold aggressively risky assets.
FTSE 100 supported by Centrica plc +9.02% higher at 42.51, Coca-Cola HBC AG +5.43% at 1616.50, 3i Group Plc +5.35% at 631.50 and Vodafone Group +4.04% at 111.55.
FTSE 100 is 0.85% higher at 5119 bouncing from the 2011 lows in an attempt to exit the deeply oversold level. The technical outlook is bearish for the FTSE index and only a credible move above the 6,000 mark can cancel the downward move.
On the upside, initial resistance for FTSE 100 stands at 5,166 the daily high. The next hurdle for the FTSE index is at 5,299 the high from yesterday’s trading session. If the index breaks above the next supply zone will be met at 5379 the high from March 16th.
On the other side, the first support for FTSE stands at 5,042 the daily low. If the FTSE index breaks lower, the next support area is at 4984 the low from March 17. More support would be met at 4,897 the low from March 16.