FTSE 100 Slumps As Quarantine Returns

ftse 100
ftse 100

FTSE 100 is under selling pressure for the second consecutive day as investors disappointed from the weak Chinese economic data released earlier today. China Retail Sales came in at -1.1% below the expectations of 0.1% in July. The last time we saw positive retail sales in China was in December 2019. The Industrial Production registered in at 4.8% in July below the forecasts of 5.1%.

Investors focus will be on the U.S. retail sales before the U.S. opening for fresh clues on the economic recovery in the USA. Meanwhile, the deadlock in negotiations between Democrats and Republicans over a new stimulus package weigh on investors sentiment.

Meanwhile, a rising number of new coronavirus infections have pushed the U.K. to impose a 14-day quarantine to travellers from France, and now analysts that France might retaliate. The travel and entertainment stocks are under pressure after the decision.

Among the worst performers in FTSE 100 are: IAG is -5.75% at 192.55, Glencore is -2.44% at 171.79. Lloyds is 2.66$ lower at 28.41, Barclays is 1.17% lower at 106.80 while NatWest is 2.40% lower 112.03.

FTSE 100 Technical Analysis

FTSE 100 is 2.06% lower at 6,059 as the correction accelerates after the index broke the 50-day moving average support. Now bears are in control of the index, and a test of the 100-day moving average at 6,171 looks possible. The next support for the FTSE 100 is at 5,863 the low from August 3. 

On the other side resistance would be met at 6,171 – the 50-day moving average and 6,185 the daily high. A break above would challenge 6,286 the top from yesterday’s trading session. More sellers would emerge at 6,332 the high from July 21. 

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FTSE 100 Daily Chart

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