FTSE 100 jumps higher on Monday morning tracking the rally in Asian markets with high volumes as the services data from the U.S., China and Europe point to the continuation of the rebound in the real economy. Local lockdowns in some cities might be the new strategy on fighting the coronavirus outbreak as new infections continue to rise in some U.S. states. The World Health Organization announced that more than 200,000 new infections confirmed globally marking a new record.
On the economic data front, the United Kingdom Construction PMI registered in at 55.3, beating the expectations of 47 in June, as it returns above 50 signalling growth.
The German Manufacturing Orders rose to 10.4% from -26.2%, but it came below the expectations of 15%. The Yearly reading for the Factory Orders came in at -29.3%, also below the expectations of -28% in May.
Vodafone (VOD) is 1.56% higher at 131.64. Lloyds Banking Group (LLOY) is 2.08% higher at 31.68, HSBC is 5.85% higher at 405.95, B.T. Group is 1.53% higher at 113.05, Ocado is 1.07% higher at 2,073. Barclays (BARC) is 3.06% higher at 119.20, and RBS is 4.06% higher at 126.80. Tesco is 0.99% higher at 223.70.
FTSE 100 Support and Resistance
FTSE 100 is 2.18% higher at 6,290 the highest level since June 24 as the index stabilizes above the 100-day moving average, enhancing the short term positive momentum.
On the upside, the first resistance for the FTSE index is at 6,304 the daily high. The next hurdle for the FTSE 100 index stands at 6,499 the high from June 9. More sellers would emerge at 6,743 the 200-day moving average.
On the other hand, the initial support for the FTSE 100 index will be met at 6,157 the daily low. If the bears break that support, then the next target is at 6,104 the 100-day moving average. A break below would cancel the positive momentum and bears might target 6,040 the low from June 25.