FTSE 100 started the week sharply lower following heavy losses in Asian stocks trades amid increasing coronavirus cases across the globe. More cases confirmed in South Korea and Japan during the weekend while the spread of the virus in France and Italy weighs on sentiment. Now investors will face an extended period of uncertainty as governments trying to contain the virus. Italian government have placed many towns on lockdown as the confirmed cases went from three on Friday to more than 150 today, with four deaths.
The FTSE MIB in Milan is 3.85% lower at 23787, while Dax and Cac are over 3% lower. The supply chain is taking a hit in China and the first signals will start showing in the economic data in March. On Friday the US PMI showed that the economic activity stalled in February. Tourism and energy stocks getting hit hard amid the concerns of lower demand.
FTSE 100 is 3.15% lower at 7168 as the bears are now in full control of the trend. FTSE makes today fresh three-month lows crushing all the support levels. The coronavirus crisis will dominate the markets in the upcoming months.
On the downside now, immediate support for the index stands at 7165 the daily low. If the FTSE 100 index breaks below, the next support area is at 7136 the December 2019 lows. A credible break below might target the low from October 4th at 7077.
On the flip side, the first hurdle for the FTSE 100 index stands at 7,369 the 200-day moving average. The next resistance for the index is at 7391 the 100-day moving average. While more sellers would be met at 7403 the daily top.