FTSE 100 started the week higher mirroring Asian markets gains after the bank of Japan (BOJ) increased the monetary policy, while investors await the easing of the restrictions as the new confirmed cases and the toll continues to fall. Investors will also focus on FED and ECB policy meetings and the corporate earnings from both sides of the Atlantic. Global confirmed coronavirus cases had topped 2.9 million while the death toll has surpassed 206k.
The coronavirus economic impact is biting as the economic data started showing the previous week a historic drop in the services and manufacturing sectors across the globe.
The UK retail sales data for March 1 to April 4, came down to record lows as the coronavirus spreading across the country the drop in sales was down 5.1% the biggest drop since 1996. The UK Services Business Activity Index tumbled to 12.3; the UK Manufacturing PMI dropped from 47.8 in March to 32.9 in April.
The Brend crude oil price holds above $21 per barrel while the WTI is under heavy selling pressure on Monday morning as it trades 13.11% lower at 14.75.
FTSE 100 is 1.66% higher at 5,846 as the index trapped between 5,600 and 5,800 looking for a fresh catalyst for the next move. It seems that the index has discounted much of the dismal economic data coming out from the UK. The technical outlook for the FTSE 100 index is neutral in the short term, but the long term momentum remains bearish as the index trades below the major daily moving average.
On the upside, first resistance for the index stands at 5,859 the daily top. The next resistance for the FTSE index is at 5,888 the high from April 14. If the FTSE index breaks above 5,888 the next supply zone will be met at 6,040 the 50-day moving average.
On the other hand, the first support for the index stands at 5,752 the daily low. If the FTSE 100 breaks lower, the next support area is at 5,641 the low from April 22. More robust support for the index would be met at 5,576 the low from April 16.