FTSE 100 Retreat After Weak UK GDP Figures

ftse 100

FTSE 100 trade lower as the rising new coronavirus cases increase investors fears for a second lockdown. Economic data earlier showed that the UK economy grew 1.8% on the month in May as the economy started the reopening. That was a significant improvement after April’s 20.3% historic slump and March’s 6.9% decline but well below the expectations of 5.5% growth. The United Kingdom Manufacturing Production came in at 8.4%, beating the expectations of -20.9% in May. The Industrial Production registered in at -20% in line with forecasts, while the Index of Services dipped to -18.9% in May from previous -9.9%.

In corporate news, Ocado is 2.21% lower at 1,987, after the company reported a rise in half-year revenue as consumers shift to home deliveries during the COVID-19 lockdown.
The reported revenue of £1.02 billion a 27.25% increase in the six months ending May 31 Retail core earnings came in at £45.7 million from £24.4 a year earlier.
However the Group core earnings drop 36% to £19.8 million, after a rise in costs from investment in Ocado’s International Solutions business, which still operates in loss of £40.6m, but better than £147.4 million loses in 2019.

Heavy volumes are observed today for Lloyds Banking Group (LLOY), which is 1.22% lower at 30.26, HSBC is 0.04% lower at 380.60, BT Group is 1.89% higher at 113.20. Tesco is 0.30% higher at 215.65. Barclays (BARC) is 1.72% lower at 117.49, RBS is 1.63% lower at 120.63. Vodafone (VOD) is 0.24% higher at 124.99.

FTSE 100 Analysis 

FTSE 100 is 0.41% lower at 6,151 as the index seesaws around the 50-day moving average for the second straight day. The index managed to pare heavy morning loses that drove the index below the 50-day moving average. The technical outlook is neutral for the short term, while a break below the 50 first and then the 100-day moving average might be the beginning of a sharp correction. 

On the downside, the first support for the FTSE 100 will be met at 6,093 the daily low. If the sellers, break that support, then the next target is at 6,025 the 100-day moving average. Next support zone for FTSE 100 stands at 5,957 the low from June 15.     

On the other hand, the initial resistance for the FTSE 100 is at 6,176 the daily high. The next obstacle for the FTSE 100 stands at 6,282 the high from July 7th trading session. The next supply zone for the index is at 6,327 the high from June 24.

Don’t miss a beat! Follow us on Telegram and Twitter.

FTSE 100 Daily Chart

More content