FTSE Drops As Death Rise
European stocks have opened on the back foot after two straight days of gains.
Share this:
European stocks have opened on the back foot after two straight days of gains. A jump in coronavirus related deaths on both sides of the Atlantic has unnerved investors, who are desperately searching for signs that the curves are flattening.
The UK recorded a record number of coronavirus deaths, 786, taking the total death toll to 6,159. France also recorded its highest death toll with 833 daily fatalities, raising concerns that France had still not reached the end of the ascent. Meanwhile New York Governor Andrew Cuomo reported 731 fatalities overnight the highest single day increase on record.
The latest data indicates that more patience is needed before we start seeing these figures decline in any meaningful and persistent way.
The latest data indicates that more patience is needed before we start seeing these figures decline in any meaningful and persistent way.
Boris Johnson remains in intensive care, although is stable and in good spirits. Foreign Secretary Dominic Raab who is leading the country in his absence indicated that any review on ending the current UK wide lock down will most likely be pushed back. A decision was due to be taken early next week on whether o extend the lock down. An extension almost goes without saying.
Goldman Sachs have forecast a -6.5% contraction in 2020. However, this is dependent on the amount of time that the UK remains on lock down.
UK job market grinds to a halt
There are growing signs of the economic hit that is coming. British employers demand for staff plunged in March with job vacancies declining for the first time in 11 years as the pandemic has brought hiring activity to a halt.
There are growing signs of the economic hit that is coming. British employers demand for staff plunged in March with job vacancies declining for the first time in 11 years as the pandemic has brought hiring activity to a halt.
Sign of what’s to come
Meanwhile online fashion retailer also provided some insight as to the disruption that the sector is seeing amid on the ongoing lockdown. The online retailer warned that sales have dropped 20-25% in the last three weeks of trading. Bricks and mortar retailers will experience and even bigger hit; a potentially fatal blow for many that were already teetering on the edge.
Meanwhile online fashion retailer also provided some insight as to the disruption that the sector is seeing amid on the ongoing lockdown. The online retailer warned that sales have dropped 20-25% in the last three weeks of trading. Bricks and mortar retailers will experience and even bigger hit; a potentially fatal blow for many that were already teetering on the edge.
FTSE Levels to watch
After rallying over 5% across the past 2 sessions, the FTSE is trading on the back foot, down 1.2% on the open. The FTSE remains above its 50 & 100 sma on 4 hour chart but within the horizontal channel that it has been in since around 25th March.
Immediate support can be seen at 5530 (50 sma) and 5400 (100 sma) prior to 5340 (lower support horizontal channel)
Resistance can be seen at 5780 (high 7th April) prior to 5831 (upper bound horizontal channel) a break above here could see the FTSE break out.
European stocks have opened on the back foot after two straight days of gains. A jump in coronavirus related deaths on both sides of the Atlantic has unnerved investors, who are desperately searching for signs that the curves are flattening.
The UK recorded a record number of coronavirus deaths, 786, taking the total death toll to 6,159. France also recorded its highest death toll with 833 daily fatalities, raising concerns that France had still not reached the end of the ascent. Meanwhile New York Governor Andrew Cuomo reported 731 fatalities overnight the highest single day increase on record.
The latest data indicates that more patience is needed before we start seeing these figures decline in any meaningful and persistent way.
The latest data indicates that more patience is needed before we start seeing these figures decline in any meaningful and persistent way.
Boris Johnson remains in intensive care, although is stable and in good spirits. Foreign Secretary Dominic Raab who is leading the country in his absence indicated that any review on ending the current UK wide lock down will most likely be pushed back. A decision was due to be taken early next week on whether o extend the lock down. An extension almost goes without saying.
Goldman Sachs have forecast a -6.5% contraction in 2020. However, this is dependent on the amount of time that the UK remains on lock down.
UK job market grinds to a halt
There are growing signs of the economic hit that is coming. British employers demand for staff plunged in March with job vacancies declining for the first time in 11 years as the pandemic has brought hiring activity to a halt.
There are growing signs of the economic hit that is coming. British employers demand for staff plunged in March with job vacancies declining for the first time in 11 years as the pandemic has brought hiring activity to a halt.
Sign of what’s to come
Meanwhile online fashion retailer also provided some insight as to the disruption that the sector is seeing amid on the ongoing lockdown. The online retailer warned that sales have dropped 20-25% in the last three weeks of trading. Bricks and mortar retailers will experience and even bigger hit; a potentially fatal blow for many that were already teetering on the edge.
Meanwhile online fashion retailer also provided some insight as to the disruption that the sector is seeing amid on the ongoing lockdown. The online retailer warned that sales have dropped 20-25% in the last three weeks of trading. Bricks and mortar retailers will experience and even bigger hit; a potentially fatal blow for many that were already teetering on the edge.
FTSE Levels to watch
After rallying over 5% across the past 2 sessions, the FTSE is trading on the back foot, down 1.2% on the open. The FTSE remains above its 50 & 100 sma on 4 hour chart but within the horizontal channel that it has been in since around 25th March.
Immediate support can be seen at 5530 (50 sma) and 5400 (100 sma) prior to 5340 (lower support horizontal channel)
Resistance can be seen at 5780 (high 7th April) prior to 5831 (upper bound horizontal channel) a break above here could see the FTSE break out.
Latest market news
The complete CFD trading experience
Award-winning platforms, competitive spreads, low commissions and dedicated support.
We live and breathe the markets and are dedicated to helping traders realise their ambitions as we continue to set the industry bar.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
S&P 500 forecast: Stocks extend drop as correction risks grow
US and global equity markets have extended Wednesday’s sell-off, with Wall Street opening lower after a weak handover from Asia and Europe. The deterioration in risk appetite has been spreading across global markets. The dollar was firmer, Treasury yields were holding onto yesterday’s gains, while gold, silver and bitcoin were all under pressure alongside equities and major currencies.
Nikkei threatens breakout as tech rebound broadens
Breakouts across the SOX and Nasdaq are being matched by rebounds across Asia, with the Nikkei now threatening to join the move.
Nasdaq 100 Forecast: Confidence Returns as the Index Challenges Record Highs
The trading week is getting underway with renewed bullish momentum across Nasdaq. This is reflected in today's session, where the index has gained more than 2.5%, highlighting a buying bias that has not been observed with this level of strength in several weeks.
StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.
StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.