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FTSE 100 Dragged by Lloyds and Barclays As Coronavirus Fears Return

ftse gbpusd

FTSE 100 slide in early trading after the World Health Organisation (WHO) said the number of new confirmed coronavirus cases hit a daily record high this week. The reopening of the economies across the globe is believed to be the reason for the rise in cases.

Trade tensions between China and USA escalate after the US Senate vote a bill that might ban some Chinese companies from listing on American stock exchanges. You can find here the Chinese companies listed on U.S. stock exchanges.

On positive news, biopharma AstraZeneca said that it is working with several countries to make the University of Oxford’s coronavirus vaccine widely accessible, and secured total manufacturing capacity for one billion doses so far, with first deliveries set to start in September.
Bank of England Governor Andrew Bailey said yesterday that negative interest rates are under active review after the previous week argued that negative rates policy was not under consideration.

Lloyds Banking Group is 1.96% lower at 29.27, Vodafone Group is +0.96% at 127.96, Barclays is -1.27% at 105.38 while Royal Bank of Scotland is -0.02% 106.78.

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FTSE 100 Resistance and Support

FTSE 100 is 0.75% lower at 6,022 as the index finds hard to break above the 6,100 mark. FTSE 100 consolidates the last three trading sessions after the sharp gains on Monday. The technical outlook is bearish for the long term despite the recent rally. On the short term, the momentum is positive as long as the index trades above the 50-day moving average. 

On the downside, first support for the FTSE 100 stands at 6,012 the daily low. If the FTSE index breaks lower, the next support is at 5,969 the low from May 19. More support for the FTSE would be met at 5,795 the low from May 18. 

On the other side, initial resistance for the FTSE 100 index stands at 6,067 the daily high. The next resistance for the index is at 6,148 the high from April 30. If the FTSE 100 index breaks above 6,148 the next resistance will be met at 6,229 the high from March 10 trading session.

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