FTSE 100 started the week in a cautious mood on rising concerns about a record number of new coronavirus cases in the USA. Boris Johnson will present on Tuesday a recovery road map to push the country out of the coronavirus crisis. Many analysts believe that some countries might halt the reopening process and return to an extensive lockdown that will stop the economic recovery around the globe.
On the economic data front, the United Kingdom Mortgage Approvals registered in at 9.3K, below the forecasts of 25K in May.
Investors will turn their focus to corporate earnings reports for fresh clues on the state of the corporate sector health. Lloyds Banking Group (LLOY) is 1.29% lower at 30.72, Vodafone (VOD) is 0.38% lower at 124.76. Barclays (BARC) is 0.52% higher at 111.55, and RBS is 0.80% lower at 117.65.
Rio Tinto is 0.76% lower at 4,498 after the company announced that reached an agreement with Turquoise Hill and the Government of Mongolia on the preferred domestic power solution for Oyu Tolgoi that will open the way for the Government to fund and construct a Power Plant at Tavan Tolgoi.
FTSE 100 is 0.29% lower at 6,141 as the index continues below the 100-day moving average for the third consecutive session. Now the sellers are in control of the trend, and lower level might be on the cards.
On the downside, the immediate support for the FTSE index will be met at 6,123 the daily low. If the bears break that support, then the next target is at 6,054 the 50-day moving average. A break below would attract more bears targeting the low from June 15 at 5,952.
On the other hand, the initial resistance for the FTSE 100 is at 6,175 the daily high. The next hurdle stands at 6,259 the high from Friday’s trading session. Next resistance to watch is at 6,319 the high from June 24.