ftse 100
FTSE 100 trades a touch lower in early trading as investors are cautious amid a rising number of new coronavirus infections in the USA while Leicester city will be excluded from the re-opening on the 4th July, with non-essential shops to close from today, amid fresh concerns about a rise in new infections. Anthony Fauci, the National Institute of Allergy and Infectious Diseases director, testified yesterday that infections could soar to 100,000 a day in the USA.
On the data front, the UK house prices fell for the first time since 2012. Nationwide’s house price index in June came down 0.1% year-on-year, below the expectations of 1%, after increasing 1.8% the previous month. The house prices fell by 1.4% month-on-month, taking into account seasonal changes, after a drop of 1.7% the last month, the expectations were for a -0.7% drop. Later on the day investors await the manufacturing PMI for fresh clues on the state of the economy.
Lloyds Banking Group (LLOY) is 0.14% higher at 31.21; BT Group is 0.22% higher at 114.30, Vodafone (VOD) is 0.99% lower at 127.57, Ocado is 1.97% lower at 1,989. Barclays (BARC) is 1.03% higher at 115.59, and RBS is 0.70% higher at 122.42 Tesco gives up 0.92% lower at 226.00.
FTSE 100 Support and Resistance
FTSE 100 is 0.02% lower at 6,168 as the index continues the consolidation phase above the 100-day moving average, as investors are confused with the mixed signals from the coronavirus and economy front.
On the upside, the first resistance for the FTSE 100 is at 6,183 the daily high. The next hurdle stands at 6,235 the high from yesterday’s trading session. Next resistance to watch is at 6,319 the high from June 24.
On the flip side, the immediate support for the FTSE 100 index will be met at 6,161 the daily low. If the bears break that support, then the next target is at 6,070 the 50-day moving average. A break below would attract more bears targeting 5,946 the low from June 15.
