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FTSE 100 finished today’s trading lower as economic data among the world’s largest economies confirm fears of a global recession. The UK’s stock index closed with a 1.18% loss at 5,415.5.
Legal & General led losses for today at -10.70% as worries about the insurance sector hit investors. It was followed by Rolls-Royce with a 9.85% loss as the company responsible for engines of most aircrafts suffered along with the airline industry. Meanwhile, Whitbread was the third-biggest loser at 9.38%.
Today, the US NFP report revealed a staggering number of jobs losses in the world’s largest economy. The report for March printed at -701,000 versus the -100,000 consensus. Meanwhile, PMI reports across Europe show that manufacturing and services industries across the region are contracting amid the coronavirus pandemic. This includes the UK’s final services PMI for March which saw a downward revision to 34.5 from its initial reading of 34.7.
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On the 1-hour time frame, it can be seen that FTSE 100 is trading within a consolidation. By connecting the highs and lows from March 26, a symmetrical triangle becomes apparent. This is widely considered as a neutral technical indicator which means that a breakout may soon happen. A close below yesterday’s low at 5,344.3 may effectively break support at the bottom of the triangle. It could then mean that FTSE 100 is on its way lower, possibly to its March 20 lows at 4,835.0. On the other hand, a close above yesterday’s high at 5,557.2 would constitute an upside break. The stock index could soon then trade higher to its March 31 highs at 5,706.8.