FTSE 100 live outlook prediction analysis for 14th February 2020
Investors were left rattled by a sizeable upwards adjustment to China’s estimates of how many people have contracted the virus. The mood on the markets turned against risk across Europe, but substantial losses during early trade gradually pared back to end the day just shy of Wednesday’s record close.
- Sterling breaks through $1.30 and hits two-month high against euro on hopes of fiscal splurge as Rishi Sunak replaces Savid Javid in Number 10
- Alok Sharma replaces Andrea Leadsom as Business Secretary
- Rishi Sunak: the ex-banker and Brexiteer who is now Chancellor
The FTSE 100 recovered some ground later in the day with the 7407 lower daily support holding, but still closed 1.09pc lower to 7,452.03. Some of the biggest laggards on the index were oil majors and mining stocks as China is the world’s largest importer of oil. BP and Royal Dutch Shell and miners such as BHP, Rio Tinto and Anglo American all finished lower. The rise in sterling and the virus fears drove the FTSE lower for most of the day.
In the eurozone the CAC and DAX ended 0.19pc and 0.03pc behind, respectively.
Markets Mixed
Stocks in Asia were mixed as traders took in the latest China data on the coronavirus, which showed a daily increase in Hubei cases that’s smaller than yesterday’s, though still bigger than before the methodology changed. Investors mulled the latest coronavirus developments and news that the Federal Reserve will dial back its liquidity injections. Treasuries nudged higher, and futures were flat in Hong Kong and Australia, while they fell in Japan. The S&P 500 Index closed lower for the first time this week as the Federal Reserve Bank of New York said it will shrink its repurchase-agreement operations more than analysts expected. Earlier, the World Health Organization said a surge in coronavirus diagnoses didn’t necessarily indicate a spike in infections, boosting risk appetite. The pound gained after Sajid Javid quit as the U.K.’s Chancellor of the Exchequer. Elsewhere, oil rose for a third session, the longest winning streak since early January. Gold pushed higher.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
Cable weighed on the FTSE 100 yesterday and helped to drive it down to the 7407 support level. However the bounce has hovered around the 7450 level since, but if the S&P plays out and rises a bit further towards 3400 then the FTSE may well get pulled up towards the 7505 resistance area as well. If it does then a short here looks to be worth a go as we have R1 and a key fib here.
Above the 7513 R1 level then the daily coral has now gone red for the first time in a while and is showing resistance at the 7566 level. Should the FTSE 100 get this high then we may well see a stutter at this area. The FTSE certainly took a bit of a knock yesterday shedding over 100 points during the day, however the flourish towards the end from the bulls holds out hope for a little bit more strength from them. The S&P 2 hour chart has gone bullish again, with that bounce from 3350 playing out slowly and steadily. Still looks ripe for a rise towards 3400.
The ASX200 (Australia) had a steady rise for most of their session and I am thinking that the FTSE may well do the same. But of course being Friday it may just do its own thing! Bit more cautious today. A slow steady rise towards 7505 would fit with the charts pretty well though.
If the bears break below the 7440 level where we have the 30min coral support, then we are likely to revisit yesterdays low again at 7405. Below this then 7375 is the 200ema on the daily and the next level that I would be looking at for support.
So expecting a rise towards 7505 and then a bit of a pull back from there today. Have a great weekend and a good trading session today.
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