FTSE 100 started the week lower as investors trying to access the impact of the coronavirus spread to the global economy. Coronavirus deaths have now surpassed the deaths of the SARS virus. There are over 40,000 confirmed coronavirus cases and the death toll is over 900. Earlier today the UK’s Department of Health declared the Coronavirus outbreak a serious threat to health.
The central bank of China expects that the country’s economy could be disrupted in the 1Q 2020 as a result of the coronavirus outbreak, but the central bank expects a sharp recovery once the coronavirus is brought under control.
FTSE 100 is 0.36% lower at 7439 as investors as the index correction continue for the second trading session. The index breached on Friday the 50-day moving average and sellers now might be more aggressive. The technical outlook is positive for FTSE 100, but a move below the 100-day moving average would cancel the bullish bias.
In case of further correction, first support for the FTSE 100 index stands 7432 the daily low. If the FTSE index breaks below, the next support area for the FTSE 100 is the 100-day moving average at 7382. More bids might emerge at 7326 the low from February 4th.
On the upside, immediate resistance for the FTSE 100 index stands at 7,466 the daily high. The next resistance for FTSE is at 7475 the 50-day moving average. While the high from February 6th at 7534 will provide more selling pressure.