FTSE 100 started on positive foot but turned lower in early trading. Better exports data from China showing that Chinese economy is starting to stabilize earlier than expected, and ahead of the earnings season in U.S. Governments around the globe might soon start to ease the lockdowns, with Austria to be the first country to open some businesses today. U.K. lockdown will be extended until May 7. The coronavirus death rates continue to decline in the UK, Spain and Italy.
Britain’s finance minister said that the U.K. economy could shrink by 30% the second quarter amid the coronavirus lockdown. Oil companies attracting some bids in early trading after major producing countries agreed on a deal to cut the oil production by 10 million barrels per day.
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FTSE 100 Technical Levels to Watch
FTSE 100 is 0.10% higher at 5845 as the rebound from the recent lows continues. The technical picture for the FTSE index remains bearish despite the rebound. Only a break above the 50-day moving average at 6351 might cancel the negative momentum.
On the upside, first resistance for FTSE 100 stands at 5,894 the daily top. The next hurdle for the index is at 6,086 the high from March 11. If the FTSE index breaks above 6,086 the next supply zone will be met at 6,228 the high from March 10.
On the other side, the first support for FTSE stands at 5,821 the daily low. If the index breaks lower, the next support area is at 5,667 the low from April 9. More support for the index would be met at 5,580 the low from April 7th trading session, which guards the recent low at 4891.
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