FTSE To 7366 As Coronavirus Fears Persist?

FTSE drops 4th straight session as coronavirus fears continue.

FOREX 1

The FTSE dropped sharply on the open and remained under pressure across the session, extending losses after Wall Street also opened lower. Fears over the spread of China’s coronavirus continue to knock stocks with exposure to China and weigh on risk sentiment.

Those stocks closely tied to China, such as the heavy weight miners and oil stocks were the hardest hit, along with tourism and travel firms. Burberry also extended losses for a third straight session.

Wuhan, the city with 11 million inhabitants at the centre of the outbreak under lock down. The number of people infected and the number of countries with the virus still rising, investors are growing increasing concerned that global growth could be affected. Investors are attempting to gauge the potential impact on airlines, retailers and to China’s consumption of metals and oil.

Quite simply traders are not prepared to keep risk on the table until there is more clarity over how this will develop. With 16 cases suspected in the US, 4 in Scotland and over 600 in China markets remain fearful.

Levels to watch:
The FTSE dropped 0.8% across Thursday, hitting a 5 week low of 7501 in its 4th straight session of losses.
Immediate support can be seen at 7455/ (low 8th Jan & 50 sma), before the bears will look to target 7366, the 100 sma.
On the flip side resistance exists at 7645 (yesterday’s) , before 7680 and 7730 (high 30th July)


Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.