FTSE 100 starts higher again as the reopening optimism and slowing infection rate offset the rising tensions between the USA and China on the new security law in Hong Kong. The upcoming opening of non-essential retailers on June 15 boosts the sector, while travel and entertainment stocks lead the rally. Analysts now estimate that over 80% of the economic activity in the UK has returned to normality.
The easing of the lockdown across many countries gives ground for optimism that a V-Shaped recovery might be achieved and the recession has likely ended.
The intervention of central banks and governments support the stocks as the excess liquidity in the system provides a smooth return to normality.
Lloyds Banking (LLOY) is leading the way, adding 4.04% at 31.30, Barclays (BARC) is 4.37% higher at 115.63, Royal Bank of Scotland is 5.89$ higher at 119,05 and Vodafone (VOD) is 2.23% higher at 131.82
FTSE 100 is 1.12% higher at 6,136 making fresh three week highs as the index extends the breakout after seven days of consolidation. FTSE 100 technical picture is bullish for the short term as the index holds above the 50-day moving average. The longer-term outlook remains bearish as long as the index trades below the 100-day moving average.
On the upside, first resistance for the FTSE 100 index stands at 6,142 the daily top. The next resistance for the index is at 6,226 the high from March 10 trading session. If the FTSE 100 breaks above 6,226 the next resistance will be met at 6,467 the 100-day SMA.
On the contrary, immediate support for the FTSE 100 index stands at 6,067 the daily low. If the FTSE index breaks lower, the next support is at 5,979 the low from yesterday. More bids for the FTSE index would be met at 5,897 the May 22 lows.