FTSE 100 live outlook prediction analysis for 7th April 2020
- Global markets rise as case growth slows in New York and parts of Europe
- Construction activity gauge hits lowest level since 2009
- Car sales drop in worst March readings for 20 years
- Sir Stelios steps up campaign against easyJet board
- Rolls-Royce cuts dividend
- BT says it will not furlough staff, commits to no job losses
London’s benchmark index climbed 3.08pc today to 5,582.39 while the FTSE 250 jumped 5.06pc to 14,812.36. London gains were capped by a stronger pound, apparently little affected by news that British Prime Minister Boris Johnson was hospitalised for precautionary tests after suffering “persistent” coronavirus symptoms for ten days. In the eurozone, the Frankfurt DAX recorded its largest one day gain in two weeks.
Reuters is reporting that Russia would be ready to discuss very substantial oil output cuts according to sources… It comes as crude oil prices have struggled today after the latest OPEC+ meeting was deferred until later this week, over disagreements on the scale and scope of possible productions cuts between Russia and Saudi Arabia. They have recovered off the lows of the day, opening over 10pc lower on Sunday night, however sentiment is set to remain cautious ahead of this week’s possible OPEC+ meeting on Thursday.
Meanwhile, gold prices have edged back towards their best levels in a week, largely on the back of a weaker US dollar, as well as the raft of new stimulus measures by various governments, that have been announced in the last 24 hours, or so. With that rise I have closed my gold long fully at 1665 as you would have seen from last nights email.
Boris Johnson
Boris Johnson has been taken into the hospital intensive care unit for treatment for coronavirus after his condition worsened, his office said, while Foreign Secretary Dominic Raab is now deputizing for the U.K. prime minister. Johnson, 55, became more seriously ill on Monday afternoon, and though he remains conscious, he was moved to intensive care at about 7 p.m. in case he needs ventilation to help him recover, an official said. U.K. deaths from the coronavirus slowed for a second day, even as they passed the grim milestone of 5,000. Elsewhere, the number of deaths seems to be slowing in New York, the biggest epicenter for the virus, as Governor Andrew Cuomo said deaths were showing indications of hitting a plateau. There are more signs that the crisis may be easing in Europe emerged as well. Italy, France, Germany and Spain reported lower numbers of new cases and the Netherlands had the smallest increase in deaths in a week. Meanwhile, Japanese Prime Minister Shinzo Abe moved to declare a state of emergency in seven prefectures including Tokyo and Osaka and also announced a record economic stimulus package. Global cases topped 1.3 million and fatalities neared 74,000.[Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Stocks surged the most in almost two weeks after the reported death tolls in some of the world’s coronavirus hot spots showed signs of easing. The yen weakened and Treasuries fell. The benchmark S&P 500 Index surged late in the trading session to finish up 7%, closing at the highest level since March 13.
We actually had a bull Monday play out quite nicely yesterday and though we bounced just above the support and long order at 5470 (low was 5485) we got a steady rise for the rest of the day towards the 5625 resistance level. That was seen out of hours, but the bulls, helped by the US managed to push the futures up to an overnight high at 5666. As such, this area is now resistance for today and its possible that we may well see a small pullback today ready for another push higher. The S&P also steadily rose and still looks to be on track for the top of the 20 day Raff channel around the 2780/2800 area. As such, buying the dip for the short term looks sensible, and the news flow has got a bit more positive on the virus spread. Still bad, just not as bad.
Above the 5666 resistance level we have R1 at 5705 and then the 25ema retest at 5745 above that. R2 at 5802 higher up.
We have moved above the 200ema on the 30min so that has decent looking support initially at 5515 and then S1 at 5469 below that. That lower support level also tallies with the 2 hour chart (which has now gone bullish after yesterdays strength) with support on that at 5485 and 5475. As such, should we drop down to this area again then a long here looks to be worth a go.
So, in a similar vein to yesterday really, we may well see the strength continue for the moment and buying the dip is still preferred for the moment anyway. Keep an eye on that 5485 area for decent support though. Good luck today.
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