The FTSE 100 was lower in early trading as European stocks were dragged lower by news that U.S. President Trump and the First Lady had tested positive for coronavirus. The news adds more uncertainty to an election picture that is becoming hard to predict. The U.K. share index was almost 1% points lower on the news.
InvestingCube's S&R Levels
Trump’s positive test announcement came hours after news broke that his aide Hope Hicks, had contracted the virus. Traders will be worried that the news risks shutting down talks over a further stimulus package.
Today’s big event on the economic calendar is the release of Non-Farm Payrolls data in the U.S. The market is hoping for an additional 850k jobs added in September and the unemployment rate is expected to fall to 8.2%. The ADP employment data and jobless claims data earlier in the week both beat expectations so there is a likelihood that the last NFP number before the election will be positive.
Today also sees the release of European core inflation data with a 0.50% reading expected by economists. The ECB has been vocal about their concerns over recent Euro strength and a low number could see increased pressure on the bank to intervene in the Euro and consider further stimulus measures.
FTSE 100 Technical Outlook
The FTSE 100 trades near support levels at 5814 as the correction continues. A rally from here would see another test of the 6,000 level where the 50-day moving average now sits. There are lots of support levels down to 5,000 but a buy signal would be needed to fade the downward trend. The Investing Cube team is currently available to assist all levels of traders with a Forex Trading Course or one-to-one coaching.