FTSE 100 recovering some of yesterday’s heavy losses. Monday was the biggest one day fall since 2016 for FTSE 100 amid the coronavirus spread in Europe and especially in Italy. The officials in Italy announced yesterday six deaths from coronavirus and over 200 confirmed cases. Investors worry that the coronavirus outbreak will have a significant impact on the global economy. Many companies from Europe and USA warn of a hit in revenues while others are facing disruptions in the supply chain. Investors are waiting for monetary stimulus from central banks to offset the coronavirus impact on the global economy.
Meanwhile on the Brexit front, France warns Prime Minister Boris Johnson not to use blackmail to secure an agreement ahead of the discussions that are scheduled to start next week.
FTSE 100 started the day 0.25% higher at 7172 as the index makes an attempt to recover from yesterday’s heavy losses. The technical outlook is bearish as the FTSE index yesterday pierced below the 100 and 200-day moving averages.
Traders attention has turned to lower levels, and immediate support for the FTSE index stands at 7156 the daily low. If the FTSE 100 index breaks below, the next support area is at 7114 the low from yesterday’s trading session. A break below might test the low from October 4th 2019 at 7077.
On the upside, the intraday resistance for the FTSE 100 index stands at 7,198 the daily top. The next resistance for the index is at 7369 the 200-day moving average. A move above might challenge the 100-day moving average at 7392.