Analysis

FTSE snaps 3 day winning streak

The FTSE has opened on the back-foot snapping three straight sessions of gains. Despite the slip lower this morning the UK index is still on track for gains in the region of 10% across the week, its first winning week since early February.

The big question is whether this is a false floor or whether it is the start of a more meaningful advance? The awful data is only just starting to show through. Chinese industrial profits slumped by the most on record. Italian and French consumer confidence is expected to plunge.

 

US consumer confidence in focus

US consumer confidence figures will guide trader’s sentiment this afternoon. After yesterday’s record breakingly dreadful initial jobless claims, consumer confidence in the US has to be on its knees. Whilst yesterday we saw dire data boost expectations of more US stimulus and lift markets higher, today we might not see the same reaction. There is a good chance that traders[fg1]  are still too nervous to hold positions over the weekend. This will be at telling signal as to how ready traders are to continue the push higher.

The number of cases in the US, the world’s largest economy have surpassed the number in China or Italy. Numbers over the weekend could escalate sharply.  

 

House builders under pressure as housing market stalls

Here on the FTSE UK house builders could struggle as the UK housing market is being brought to a near standstill by coronavirus. Even those that have exchanged contracts are being advised not o complete, with mortgage lenders extending mortgage offers for three months to help the rebound after the social distancing measures are eased.

 

Levels to watch

The FTSE has dropped 3% on the open after failing to push through resistance at 100 sma on 4-hour chart.

Immediate support can be seen 5448 (yesterday’s low) prior to 5254 (50 sma) and 4762 (low 23rd March).

On the flip side, strong resistance is at 5787 (today’s high & 100 sma) prior to 6230 (high 10th March).

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.