FTSE 100 Rise Mirroring Wall Street and Asian Markets

FTSE 100 extends gains on Tuesday as the economy reopens while London is considering exemptions to arrivals from some countries. FTSE 100 boosted by improved sentiment after Wall Street and Asian markets finished higher.

On the Brexit negotiations, Boris Johnson will resume talks this month with European Commission, in the hope of unblocking post-Brexit trade negotiations. London Mayor Khan asked Michael Gove to back an extension to the transition period; the deadline now is the end of June.
On the economic data front, the UK Nationwide Housing Prices seasonally adjusted came in at -1.7%, below the forecasts of -1% in May, while the yearly reading registered in at 1.8% below the expectations of 2.8%. Weal data is no surprise as lending has collapsed during the coronavirus crisis.

On the corporate front, Tesco is looking for a new chief financial officer (CFO) after Alan Stewart decided to retire from the supermarket group. Lloyds Banking Group (LLOY) is 0.94% higher at 31.15, Vodafone (VOD) is 0.22% higher at 135.61, Barclays (BARC) is 0.40% lower at 120.35, and HSBC is 0.09% higher at 380.72.

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FTSE 100 Technical Analysis

FTSE 100 is 0.45% higher at 6,193 as the index digests the recent highs. FTSE 100 has gained 26% since the March lows lagging the US indices, which are now over 35% higher. The short term technical picture is bullish for the index, but the longer-term outlook remains bearish as FTSE 100 trades below the 100 and 200-day moving averages. 

On the upside, the index will meet initial resistance at 6,209 the daily high. More offers will emerge at 6,236 the high from March 10. In case of a break higher, the next hurdle will be met at 6,410 the 100-day moving average.  

On the flipside, immediate support for the FTSE 100 index will be met at 6,165 the daily low. Next support area stands at 6,072 the low from yesterday’s trading session. If the bears break that level, then the next support is at 5,804 the low from May 18.   

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