Quote from Nick on 6th April 2021, 9:09 am

FTSE 100 live outlook prediction analysis for 6th April 2021

Looking back to Thursday, a wave of optimism over an economic recovery boosted global markets on the first day of April trading, propped up by positive fresh data and Joe Biden’s stimulus boost. New figures from IHS Markit showed UK manufacturing growth soared in March to a decade-high of 58.9. A score above 50 is seen as a sector in growth. Business optimism, meanwhile, hit a seven-year high amid a strong vaccine rollout and the gradual reopening of the economy.

The benchmark FTSE 100 reversed Wednesday’s declines, closing up 23.67 points to end the week at 6,737.3 ahead of the Easter bank holiday weekend. The FTSE 250 gained 213.96 points to 21,732.67.

The US markets continued to climb yesterday with the S&P holding onto gains above the 4000 level, however it has now come into resistance at the 4085 level and we may well see a bit of cooling here.

Uniform Tax

In her first major speech on international economic policy, U.S. Treasury Secretary Janet Yellen made a case for a minimum corporate tax rateacross the world’s major economies. She spoke of an American return to the “global stage" and singled out China, saying the U.S. needs a “strong presence in global markets” to level the playing field. The tax proposal marks the return of the U.S. to years-long talks — led by the OECD with about 140 countries — to develop a global agreement on minimum levies. This week, Yellen is participating in her first round of meetings as Treasury secretary during the spring IMF and World Bank meetings, being held virtually this year.[Bloomberg]

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US & Asia Overnight from Bloomberg

Most Asian stocks fell Tuesday as concern China is curtailing loan growth hurt sentiment after U.S. stocks hit a record on optimism about the rebound in the world’s largest economy. Treasuries and the dollar ticked up.

An Asia-Pacific share gauge dipped for the first day in four, led by losses in Japan. S&P 500 stock futures were slightly in the red, while European contracts pointed higher. The U.S. index reached an all-time high Monday with most of its major groups advancing. Megacap U.S. technology stocks rallied, including a surge by Facebook Inc. to a new peak as the Nasdaq 100 jumped 2%.

In China, the central bank asked the nation’s major lenders to curtail loan growth for the rest of this year, according to people familiar with the matter. Australia’s monetary authority left its key policy settings unchanged and said it’s monitoring trends in housing borrowing as home prices rise.

Meanwhile, oil pared some of its overnight slide, which was sparked partly by delays in Europe’s reopening due to rising virus cases.

U.S. data continued to highlight an economic pickup as more Americans are vaccinated against the coronavirus, restrictions are rolled back and fiscal relief takes hold. U.S. service providers had the fastest growth on record in March as orders jumped to new highs. But other parts of the world are still struggling to curb the pandemic and are lagging behind in inoculations.

FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis

We had a strong trending bull Monday on the US markets yesterday and we may well see a bit of a bear Tuesday kick in today. It's the first day back for the FTSE 100 after the long weekend, and we could wee see a rise and dip play out.

Initial support is at 6760 where we have S2 and also the key fib level at 6756 so a rise from this level back towards the 6800 level would make sense. Below the 6756 level then S3 is at 6745 and then the bottom of there 10 day Raff channel (and the daily coral) and the 6722 level. If we were to slide this far down then the bulls will certainly be looking to defend this level.

The S&P bulls will also be looking to defend any dip, and we have support initially at the daily pivot at 4066, with S1 at the 4048 level below that. If the bulls do defend then we may well see this hold and a rise towards the 4085 level again, with a possible push towards 4100 where we have R1. That would also help pull the FTSE up higher as well towards the 6800 resistance level.

That 6800 is the daily pivot and also a red 30m coral just appearing here after the weakness overnight. The overnight drop has also dipped below the 2h support from the Hull moving average at 6788 which could well give the bears some hope for a bit of Bear Tuesday action. Bulls remain in charge though.

Above the 6801 resistance level then we have R1 at 6821 and also the overnight high here - as such we may well see this cap any rise today. If not then the key fib at 6845 and then R3 at 6859 are the next levels of note. I am not convinced that we will get that higher resistance today, but a lot will depend on whether the S&P can hold onto yesterdays gains.

So, little bit guarded today while the dust settles and the FTSE gets back into its groove after the extended break, and looking for a rise and dip to play out. Good luck today.

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