Along with its European counterparts and following in the steps of Asian stocks, FTSE 100 closed the first day of trading for Q2 2020 with losses. The UK’s stock index finished with a 3.8% or 217-point loss at 5,454.6.
Tour operator Carnival sustained the biggest loss among the stocks listed on FTSE 100. It was down 20.54% for the day. This comes after the company announced that it needed $6 billion in debt to help it cope with the coronavirus pandemic. Meggitt was the second-biggest loser at -14.23. Meanwhile, Melrose and Rolls Royce came in third and fourth with -11.70% and -11.36%, respectively. Lloyds Banking Group then rounded up the top five-losers, being in the red by 11.22%.
Alternatively, British online supermarket Ocado Group led gains with a 7.83% uptick. Imperial Brands and British American Tobacco came in second and third at 3.42% and 3.22%, respectively, as these tobacco companies see sustained demand amid the coronavirus pandemic.
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FTSE 100 Outlook
On the 1-hour time frame of FTSE 100 CFDs, it can be seen that the stock index has made lower highs after a series of higher highs. Consequently, a head and shoulders pattern has formed. It’s worth pointing out that FTSE 100 still needs to test the neckline support around 5,295.7 before the chart pattern is completed.
A strong close below this price could mean that the stock index may have room to fall to its March 20 lows at 4,835.40. On the other hand, reversal candlesticks around this price could mean that there are still enough buyers to push FTSE 100 to its recent highs at 5,687.0.
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