- Summary:
- FTSE 100 started lower on Thursday after some major components of the index, BP, AstraZeneca, Legal&General, Diageo, and GlaxoSmithKline trade ex-dividend
FTSE 100 started lower on Thursday after some major components of the index, BP, AstraZeneca, Legal&General, Diageo, and GlaxoSmithKline trade ex-dividend today. Today’s move halted a four-day rally boosted by better employment data from the UK and a revision to the GDP projections by the Bank of England.
The June ILO unemployment rate reported down to 3.9% beating the expectations of 4.2%. However, the UK economy contracted by 20.4% in the second quarter of 2020, following a contraction of 2.2% in the first quarter. The figure came better than estimates of a 20.5% contraction.
The U.S. administration announced yesterday that it would keep the 25% tariffs on some European goods and whisky however it didn’t impose additional tariffs as it had threatened before.
Investors focus will be today on the U.S jobless claims with expectations at 1.12 million, while the continuing claims are expected to drop to 15.80 million.
Stocks that pressure the FTSE 100 today are: Legal & General Group is 2.15% lower at 231.75. BP is 2.15% lower at 304.60, RioTinto is 2.72% lower at 4,706. In the banking sector, Lloyds is 0.66$ lower at 29.49, NatWest is 1.47% lower 117.53. HSBC Holdings is 1.82% lower at 350.57, while Barclays is 0.97% lower at 110.40.
FTSE 100 Daily Technical Analysis
FTSE 100 is 1.06% lower at 6,214 as investors are booking some profits after the recent rally. The index breached yesterday above the 50-day moving average while the correction today doesn’t seem a thereat that support at least for now. Short term the bias would remain positive as long as the index stays above 6,181.
Support for the FTSE index stands at 6,200 the daily low. In case the FTSE breaks lower, the next support would be met at 6,181 the 50-day moving average. More bids might emerge at 6,006 the 100-day moving average.
On the other side, an initial resistance is at 6,280 today’s top. More selling pressure awaits at 6,307 the high from yesterday’s trading session. The next resistance zone stands at 6,523 the high from June 8.
FTSE 100 Daily Chart
