FTSE 100 started higher the session after the Federal Reserve launched a corporate bond-buying programme in the secondary market, above the bond exchange-traded funds (ETFs) buying, and amid speculation that President Donald Trump is considering a $1 trillion infrastructure package to boost the coronavirus battered economy.
UK Unemployment Rate Beat Estimates
The jobs data from the UK showed the unemployment rate held steady between February and April at 3.9%, below the expectations for a jump to 4.5%. The claimant count rose by 528,900, which was above the expectations of 370,000 increase. Average earnings excluding bonuses grew 1.7% in April, down from 2.7% in March but below the expectations for a 1.9% increase.
Investors left behind the concerns for a second wave of coronavirus infections and returned to risky assets today. Ocado is 0.59% higher at 1,950. Lloyds Banking Group (LLOY) is 3.24% higher at 32.56, Vodafone (VOD) is 2.65% higher at 127.78, Barclays (BARC) is 3.10% higher at 119.69, RBS is 3.64% higher at 122.58, BT Group is 2.90% higher at 116.97 and Tesco is 1.40% higher at 225.10.
FTSE 100 is 2.22% higher at 6,199 as the index recovers all of yesterday’s losses as yesterday the index tested the 50-day moving average and managed to rebound. The technical outlook for FTSE 100 is positive for the short term, but the longer-term picture remains bearish as long as the index trades below the 100-day moving average.
On the upside, the first resistance for the FTSE 100 is at 6,236 the daily top. The next hurdle stands at 6,276 the 100-day moving average. Next level to watch is at 6,327 the high from June 11.
On the other side, immediate support for the FTSE will be met at 6,064 the daily low. Next support area stands at 5,949 the 50-day SMA. If the sellers break that level, then the next support is at 5,893 the low from May 22.