FTSE 100 Retreat On Coronavirus Uncertainty

FTSE 100
FTSE 100

FTSE 100 retreat today as the enthusiasm over the coronavirus vaccine and the EU coronavirus relief fund fades away. FTSE hit yesterday monthly highs but investors today prefer to book some profits as the new COVID-19 infections continue to rise in many areas around the world.

On the Brexit front, there are reports that the UK is close to abandoning hope of striking a trade deal with the EU as the two sides are far away on crucial issues. The UK expects trade with Europe to be on World Trade Organisation rules when the Brexit transition period ends by the end of 2020.

In corporate news, Melrose Industries cut its interim dividend and said it expects a small first-half operating profit, amid the sharp drop in revenues due to the coronavirus crisis. The second-quarter revenues drop by 27%, but there is a rebound in June after the easing in lockdown measures.

Lloyds Banking Group (LLOY), is 0.05% lower at 30.49, Tesco is 1.52% lower at 213.50. HSBC is 1.46% lower at 375.40, BT Group is 0.52% higher at 116.60. Barclays (BARC) is 0.36% lower at 116.23, RBS is 0.58% lower at 122.00. Vodafone Group (VOD) is 0.06% lower at 130.30.

FTSE 100 Daily Technical Analysis 

FTSE 100 is 0.90% lower at 6,213 as the index looks trapped between the 6,200 and 6,300 looking for the next catalyst that will give the fuels for a breakout. FTSE 100 has underperformed other European indices and Wall Street. If the sentiment remains positive for risky assets, we might see a move up to the 6,500 mark. 

On the downside, the intraday support for the FTSE 100 index will be met at 6,210 the daily low. If the bears, break that support line, then the next target would be at 6,174 the 50-day SMA. Next support for FTSE 100 stands at 5,975 the 100-day SMA. 

On the other side, the immediate resistance for the FTSE 100 index is at 6,271 the daily high. The next hurdle for the FTSE stands at 6,316 the high from yesterday’s trading session. The next supply area for FTSE 100 is at 6,474 the high from June 9th. 

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FTSE 100 Daily Chart

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