FTSE 100 and stocks in the UK are under heavy selling pressure as investors start receiving the messages from the negative impact of the coronavirus crisis. Apple Inc. (AAPL) warned that revenue in the current quarter will no meet the guidance due to weak demand in China and disruptions in the supply chain. The news is just a confirmation of the fears that the coronavirus outbreak will hit the global consumption and output.
On the data front the United Kingdom Claimant Count Rate dropped to 3.4% in January from the previous 3.5%. The Unemployment Rate for December came in at 3.8% in line with expectations. The UK Average Earnings Excluding Bonus came in at 3.2%, below the forecasts of 3.3% in December.
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FTSE 100 is 0.99% lower at 7357 as the index after the Apple revenue warning breaks below the 100-day moving average, while as of writing has also breached below the 200-day moving average that might enhance the negative outlook. The technical outlook is negative now for the short term and lower levels can’t be ruled out.
On the downside, first support for the FTSE index stands 7355 the daily low. In case the FTSE index breaks below, the next support zone for the FTSE 100 is at 7325 the low from February 4th. Next level to watch on the downside would be the 2020 low at 7276.
On the other side, initial resistance for the FTSE 100 stands at 7,433 the daily high. The next resistance for the FTSE 100 index is at 7451 the high from yesterday’s trading session. Next resistance will be met at 7498 the 50-day moving average.