The FTSE 100 index followed other major global indices lower this Friday, as Brexit uncertainties continue to pressurize the UK and European markets. Bank stocks on the FTSE 100 lead the slump, erasing more than 2.5% to hit their lowest levels in nearly three weeks.
The European Commission President, Ursula von der Leyden, hinted that a no-deal exit looked more likely than a trade deal at this time, throwing fuel into a fire that sent buyers scampering for safety.
Three of the UK’s biggest banks, Lloyds Banking Group, Natwest Group, and Barclays, are among the top 5 losers on the index, losing 4.82%, 6.49% and 4.99%, respectively. Rolls Royce is the biggest loser on the day, shedding nearly 8.12%. International Consolidated Airlines is down 4.47% after it emerged yesterday that there would be restrictions on UK travelers entering the EU from January 1, 2021.
The FTSE 100 retreated from the 6599.2 resistance, which has held firm all week despite tests on all previous trading days. Today’s downside has found support at the 6514.8 level. A breakdown of this support is needed to open the door towards the December 4 low at 6483.5. Further support is seen at 6405.3 and 6325.3.
On the flip side, a push above 6599.2 is required to bring additional upside targets into the picture. This move could come from a bounce on the current support. Buyers targeting 6739.0 following a break of 6599.2 could benefit from this outlook. 6872.2 forms an additional target to the north.
