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FTSE 100 Drops on Coronavirus Fears

FTSE 100
FTSE 100

FTSE 100 gives up 0.43% at 7538 as concerns that the trade tensions between the US and the EU could escalate. President Donald Trump said that the EU has ‘no choice’ but to negotiate a new trade deal with the USA. On the US-China trade front, Treasury Secretary Mnuchin said that the phase two deal has no deadlines. Also investors worries about the  coronavirus outbreak in China returned after the confirmed cases reached 600 in China.

Positive economic data from the UK this week have lowered the possibility of a rate cut by the Bank of England next week. The U.K. employment grew by 208k in the three months to November with the unemployment rate steady at 3.8%.

Wall Street finished mixed yesterday as corporate earnings reports continued to stream in.

Read our Best Trading Ideas for 2020.

FTSE 100 Support and Resistance

FTSE 100 is 0.32% lower at 7,548 as the correction from six-month highs continue for the fourth consecutive trading session. The index makes fresh 10-days low as investors take some profits off the table.

On the downside, immediate support for the FTSE 100 index stands at 7,533 the daily low. If FTSE breaks below the next support zone will be met at 7450 the 50-day moving average. Below that level the next target for the bears stands at 7366 the 100-day moving average.

On the flip side, immediate resistance for the FTSE 100 index stands at 7,572 the daily high. The next hurdle for the index will be met at 7638 the high from yesterday’s session. The 2019 high from July 30th at 7,727 is the next supply zone.