FTSE 100 retreat today as investors taking some profits off the table amid rising worries of new infections in Australia and USA. News that State of Victoria in Australia is considering a new four-week lockdown sent risky assets lower. Stocks rallied yesterday across the globe on hopes for a fast recovery after better than expected economic data from Europe USA and China.
Rishi Sunak will announce a package up to £3bn of energy efficiency measures as part of a broader coronavirus relief package aimed at boosting the UK economy. The package will include £2bn to new green homes grant and £1bn for insulating public buildings that have to be spent within a year so that it acts as an effective stimulus.
On the data front, the house prices fell for the fourth straight month as the United Kingdom Halifax House Prices came in at -0.1%, but beating the expectations of -0.9% in June.
Brexit negotiations will continue to London, with the EU warning that it is time for Britain to make the next move.
Among the top movers, today are: Lloyds Banking Group (LLOY) is 0.77% lower at 30.96, HSBC is 2.31% lower at 399.10, BT Group is 0.14% lower at 109.30, Ocado is 0.79% lower at 2,015. Barclays (BARC) is 1.36% lower at 115.73, RBS is 0.96% lower at 123.80. Tesco is 0.59% higher at 220.15. Vodafone (VOD) is 0.38% lower at 129.70.
FTSE 100 Daily Analysis
FTSE 100 is 1.19% lower at 6,209 at the lowest level of the day. FTSE 100 positive momentum halted today, but the technical picture keeps the bullish momentum above the 100-day moving average. The longer-term outlook remains bearish for the index below the 200-day moving average.
On the upside, the first support for the FTSE 100 index will be met at 6,205 the daily low. If the FTSE 100 bears, break that support, then the next target is at 6,153 the low from yesterday trading session. Next support zone stands at 6,090 the 100-day moving average.
On the contrary, the initial resistance for the FTSE 100 is at 6,285 the daily top. The next hurdle for the FTSE 100 stands at 6,338 the high from June 23. More sellers would emerge at 6,738 the 200-day moving average.
FTSE 100 Daily Chart