Open an Account
☰
Open an Account
✖

FTSE Jumps As Mood Improves But PMIs Could Hit Hard

By :   Fiona Cincotta , Senior Market Analyst
March 24, 2020 3:37 AM
European stocks are bounding higher on Tuesday, as the mood in the market improves.  The number of deaths in Italy from coronavirus dipped for a second straight day, fuelling hopes that the devastating outbreak may have peaked there. The government announced a death toll of 602, down from 651 on Sunday and 793 on Saturday. 

The data is providing a glimmer of hope that the unprecedented national lock down, imposed two weeks ago is at last having an effect. The news comes as Boris Johnson finally put the UK into lock down last night and as the number of deaths in Spain jumps 32%.
Still too early to call a bottom
Whilst it is definitely far too early to try to call the bottom there are certain factors that trades will be watching for. These include signs of each country peaking, sufficient monetary and fiscal support to prevent the collapse of the economy and of course any signs of a vaccination.
The improved mood also came after the Fed unleashed unlimited quantitative easing and as there are signs of progress in Washington towards the agreement of a $2 trillion rescue programme.
 
PMI's
However, this improved mood could be shattered by the release of PMI data. Expectations are for manufacturing and service sector UK PMI’s to fall sharply to  45 and 45.1 respectively, down from 51.7 and 53. Even if the data did come in better than forecast, which is unlikely, the revision will be significantly worse after the UK goes into lockdown.

Levels to watch
The FTSE has jumped 3% higher on the open. On the 1 hour chart the FTSE has pushed through both the 50 and 100 sma. It currently attacking the 200 sma at 5210. A meaningful move above this level could see more bulls jump in. 
Immediate resistance can be seen at 5210, prior to 5440 (high 20th March). A move beyond this level could negate the downward trend.
Immediate support can be seen at 5006 (low overnight) and 4780 (yesterday’s low).

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. Products and services available depend on your location and the entity holding your account. Before deciding to trade forex, commodity futures, or digital assets, 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 StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.

© FOREX.COM 2026