FTSE 100 Fall on Growth and EU-USA Trade Tensions Concerns
FTSE 100 trades 0.53% lower midday at 7,084.19 mirroring Wall Street after heavy losses for all the major US indices as concerns grow on the health of the global economy and the new front on trade tensions between US and EU. U.S. Government announced tariffs on $7.5 billion worth of European exports from cheese to whiskey. United Kingdom Markit Services PMI came in at 49.5 below forecasts of 50.3 in September.
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On the technical side, FTSE 100 lost the positive momentum after yesterday’s slump from 7-week highs, and bears took control when the FTSE 100 slid below the 100 and 200-day moving averages. On the downside where investors’ attention has turned now, immediate support stands at 7,073, today’s low, while a break below will open the way for a test of 7,027 the August low. Below this level, the next support comes in at the lows seen in February 2019, at 6,966. On the upside, the index is facing resistance at 7,129, the daily high, and then at 7.238, the 200-day moving average, a close above could open the way for a move up to 7,346 the 100-day moving average.
European indices trading higher today: the CAC 40 in Paris trading 0.66% higher at 5,458, in Milan, the FTSE MIB is 0.37% higher at 21,384.
In Wall Street, the Dow Jones futures trading 0.33% higher at 26,069, the S&P 500 futures are 0.39% higher at 2,892 while the Nasdaq futures are 0.48% higher at 7,582 signaling a positive start for equities in the other side of the Atlantic. In the afternoon, investors will focus on the US ISM Non-Manufacturing PMI which will be released at 15:00 London time.