FTSE 100 Higher Ahead Of the Manufacturing PMI

FTSE 100 turns higher in early Tuesday trading after President Trump calm markets that the phase one trade deal with China is still intact. Yesterday trade advisor Navarro said in an interview that the phase one deal with China is over after China failed to inform the USA about the coronavirus outbreak.

Investors will focus today on Manufacturing and services PMI for fresh clues on the state of the recovery.

Meanwhile, better than expected manufacturing data (but still below 50) from Germany and France supported equities. The Germany Markit Manufacturing PMI came in at 44.6, beating the expectations of 41.5 in June. The Services PMI came in at 45.8 also above the expectations of 42, while the PMI Composite registered in at 45.8, the expectations were for 44.2 in June. The France manufacturing PMI also beat the forecast of 46 as it came in at 52.1.

Investors expect that Prime Minister Boris Johnson will announce later today that museums, pubs, cinemas, and galleries can reopen from 4 July.

Lloyds Banking Group (LLOY) is 2.77% higher at 32.51; BT Group is 1.20% higher at 121.75, Vodafone (VOD) is 2.02% higher at 129.36, Ocado is 3.53% lower at 1,979. Barclays (BARC) is 2.41% higher at 118.13, and RBS is 2.57% higher at 123.47 Tesco retreat today and gives up 1.37% lower at 229.90.

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FTSE 100 Index Daily Technical Analysis

FTSE 100 is 0.97% higher at 6,306 as the index continues to find strong support at the 100-day moving average. Now the question is if that support can also provide the next leg higher. The long term picture remains bearish below the 200-day moving average, while the recent positive momentum might be cancelled if the index breaks below the 100-day moving average.   

On the upside, the initial resistance for the FTSE 100 is at 6,310 the daily high. The next hurdle stands at 6,382 the top from June 10th. Next level to watch is at 6,475 the high from June 9th.

On the flip side, first support for the FTSE 100 index will be met at 6,244 the daily low while the 100-day moving average at 6,215 will provide extra support. If the bears break that support, then the next target is at 6,019 the 50-day moving average. 

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