FTSE 100 recovers today most of yesterday’s losses amid slowing coronavirus spread and China stimulus hints, boosted investors sentiment. Better than expected CPI data also helps sentiment. The United Kingdom CPI Index came in at 1.8% better than the expectations of 1.6% in January printing a six-month high.
The inflation data came in line with the Bank of England’s expectations, so analysts now don’t expect a change in the outlook for interest rates. The Core CPI came in at 1.6% topping the expectations of 1.5%. The UK Retail Price Index came in at -0.4% also above the consensus of -0.6% in January.
The encouraging UK economic data in the last two weeks supporttts Britishhh equities and may continue to strengthen the British pound over the next trading sessions. Investors confidence in the UK economy currency appears to be gradually returning.
Stock markets left behind the revenue warning from Apple and Asian indices ended higher while the futures in Wall Street are trading in positive territory.
FTSE 100 is 0.83% higher at 7443 as the index rebounds having tested yesterday the 200-day moving average. Today the index manages to break also above the 100-day moving average, boosting the positive outlook for the index. The technical outlook is positive now and higher levels for the FTSE is possible.
On the upside, first resistance for the FTSE 100 index stands at 7,460 the daily top. The next resistance level for the FTSE 100 is at 7473 the high from February 17th trading session. A break above might test the 50-day moving average at 7498.
On the downside, first support for the FTSE index stands 7382 the daily low. In case the index breaks below, the next support zone for the FTSE 100 is at 7355 the low from yesterday’s trading session. Next level to watch on the downside would be the yearly low at 7276.