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FTSE 100 Slumps On Banking Scandal – HSBC, Lloyds, Barclays Down Over 5%

FTSE 100
FTSE 100

FTSE 100 slumps to the lowest level since September 7 as the coronavirus cases continue to rise in the U.K. and Europe while a report about a banking scandal rattles the banking sector. Lloyds Banking Group is 5.82% lower at 23.77, Barclays is 6.33% lower at 91.20, NatWest is 5.68% lower at 91.43, while HSBC is 3.98% lower at 291.93.   

Money Laundering Scandal Hits Banks 

Media reports that some of the biggest global banks such as Deutsche Bank, Standard Chartered and HSBC moved illicit funds for two decades from clients they suspected of money laundering. The reports referred to the suspicious activity reports filed by the banks to the U.S. Treasury.

Fears Of A second Coronavirus Lockdown Increase

New coronavirus cases are rising by 6,000 daily while hospital admissions rising sharply pointing to new restrictive measures ahead of the winter season, while there are some talks of another lockdown in London. New restrictive measures would cancel the recent economic recovery and might further shrink the GDP. 

Rolls Royce Down 10%

The selling pressure continues in Rolls Royce after the company announced that it might proceed with new equity offering up to 2.5 billion. Travel and entertainment stocks are also under pressure with IAG down 10.68% at 98.63. Tesco and Ocado are the two of the total four stocks that trade in positive territory today. 

FTSE 100 Analysis 

FTSE 100 is 2.88% lower at 5,831 marking the worst session since June 24, as the correction accelerates. We have discussed in our previous analysis that bears are in full control after the index breached below the 100-day moving average. 

Intraday support for the FTSE 100 index is at 5,825 the daily low, while the next level to watch is at 5,775 the low from September 4. A Break below might challenge 5,659 the low from May 14. 

On the contrary, initial resistance for the index stands at 6,007 the daily high. Next hurdle would be met at 6,069 the 50-day moving average, while the critical resistance at 6,092 – the 100-day moving average – would provide the next supply zone. 

FTSE 100 Daily Chart