FTSE 100 Higher On Strong Wall Street And China Tariff Cut
FTSE 100 continues higher for the fourth straight day after China announced it would halve tariffs on some $75 billion of imports from the U.S.A starting February 14. On the coronavirus front, the number of confirmed coronavirus cases are more than 28,000, with the death toll at 564, there also 1255 patients who have recovered. Traders sentiment lifted yesterday by news that there is substantial progress on the coronavirus cure and vaccine.
In Wall Street the indices hit fresh record highs helped by US politics, robust economic data and another intervention from China with the tariff cuts announcement. Investors also hope for more stimulus from other central banks.
UK housing starts edged up to highest level since 2007 last year as the economy slowly recovers from the Brexit uncertainty. The FTSE started strong the day but as of writing traders are taking some profits off the table as the coronavirus outbreak remains the key point of uncertainty in the markets.
FTSE 100 is trading close to daily lows, adding 0.07% at 7487. The FTSE 100 yesterday managed to break above the 50-day moving average, enhancing the positive momentum. The technical outlook is bullish and can be questioned only if today closes below the 50-day moving average.
On the upside, first resistance for the FTSE 100 stands at 7,533 the daily high. The next hurdle for FTSE on the upside is the high from January 27th at 7589. More offers would emerge at 7639 the high from January 26th.
In case of a correction, the initial support for the FTSE 100 index stands 7482 the daily low. If the FTSE index breaks below, the next support for the FTSE 100 is the 100-day moving average at 7379. While more bids might emerge at 7327 the low from February 4th.