FTSE 100 started the week higher mirroring Wall Street Friday’s session. Stronger than expected employment data on Friday from the USA boosted investors sentiment. The Nonfarm Payrolls came in at 1763K in July, above the expectations of 1600K. The unemployment rate fell to 10.20% from 11.1% in June. The data eased investor’s worries on the state of the economic recovery, as the rising number of new infections in the South States might halt the recent economic recovery.
Traders await the UK jobs data and the GDP figure latter on the week for fresh clues on the state of the United Kingdom economy.
The Chinese economy, on the other hand, shows signs of faster than expected economic recovery. China Consumer Price Index (CPI) registered in at 0.6%, topping the estimates of 0.4% in July. The yearly reading for CPI came in at 2.7% also above the expectations of 2.6%. The PPI registered in at -2.4%, above the expectations of -2.5%. Last week the China Exports increased by 7.2% in July beating the forecasts of -0.2%.
On the FTSE 100, Lloyds is 2.02% higher at 28.35, HSBC Holdings is 0.57% higher at 327.43. NatWest is 2.94% higher 114.00. Vodafone is 0.51% higher at 117.37, while Barclays is 2.22% higher at 106.98. BT Group is 1.51% higher at 107.33.
FTSE 100 is 0.21% higher at 6,044, having hit in the opening 6,099. Investors are cautious ahead of the fundamental data later on the week and stay on the sidelines, with FTSE trading in a narrow trading range. The first resistance for the index in the daily chart stands at 6,099 today’s top. Next obstacle would be at 6,148 the high from July 30. More selling pressure might emerge at 6,186 the 50-day moving average.
On the other side, support stands at 6,032 daily low. The 100-day moving average has proved a strong barrier for the FTSE would attract more sellers targeting 5,875 the low from August 3.
