On the data front, the UK jobless claims hit the highest since 1996. The claims increase by 856,500 to 2.097 million, a 69% increase. The March reading was at 1.2 million. The UK ILO Unemployment Rate came in at 3.9%, below the forecasts of 4.4% for the period January-March including only one week of the lockdown. The Average Earnings Excluding Bonus came in at 2.7% beating the expectations of 2.6% in March.
The figures could have been worse as some 7.5 million workers are being paid at least 80% of their salary under the program even though they aren’t working.
FTSE 100 is 0.25% lower at 6,031 trading close to daily lows after earlier today hit 6,112, but sellers stepped in after the disappointing UK jobless claims. The technical picture remains positive for the short term as long as the FTSE index trades above the 50-day moving average. For the long term, the technical outlook remains bearish, and only a break above the 100-day moving average can cancel that momentum.
On the downside, immediate support for the FTSE 100 stands at 6,028 the daily low. If the index breaks lower, the next support is at 5,802 the low from yesterday. More support for the FTSE 100 index would be met at 5,692 the 50-day moving average.
On the other hand, minor resistance for FTSE 100 index stands at 6,112 the top high. The next resistance for the FTSE is at 6,148 the high from April 30 trading session. If the FTSE index breaks above 6,148 the next resistance will be met at 6,229 the high from March 10.