FTSE 100 live outlook prediction analysis for 1st April 2020
The FTSE 100 closed out its worst quarter since 1987 with a mild rally yesterday but has since tumbled again, and is now nearly off 150 points. It closed 1.95pc higher to 5,671.96, meaning it has lost just under 25pc of its value. The blue-chip index has dropped nearly 1,900 points since the start of January, with nearly half a trillion pounds wiped off the value of London’s top listed firms. Further pain has been piled on investors as a slew of companies scrap their dividends amid a scramble to shore up cashflow. The quarter included the FTSE 100’s third- and fourth-worst weeks ever – a 17pc drop in mid-March, and 11.1pc fall at the end of February. March 12th’s 10.9pc drop was the index’s second-worst day ever, while the 7.7pc drop on March 9th was the sixth worst.
The pan-European Stoxx 600 fell 22pc across the quarter – in which it also touched a record high – its biggest drop since 2002. Global stocks have suffered their biggest fall since the financial crisis.
The FTSE 250 ended 3.26pc higher at 15,101.13.
New Epicenter
New York state reported a 9,300 increase in coronavirus cases on Tuesday to 76,000, surging past China’s Hubei province, the former epicenter and the virus’ place of origin. New York has the lion’s share of infections in the U.S., which, as a country, now has the most cases in the pandemic after eclipsing China last week. China’s epidemic, now contained to a few new domestic cases after a two-month battle, was largely confined to Hubei province, which had 67,801 cases as of March 30. New York has a population only a third of Hubei’s — 20 million people reside in New York state while 60 million live in Hubei. Still, New York is faring better in terms of their death toll: it exceeds 1,500 there, while it’s more than 3,100 in Hubei. Over in China, the government revealed a further 1,541 symptom-free virus cases under pressure from growing criticism over China’s failure to disclose their full number. [Bloomberg]
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
U.S. stock futures declined as investors assessed worsening American coronavirus figures as a new quarter begins. Asian shares traded mixed.
Futures on the S&P 500 Index slid more than 1.5% after President Donald Trump warned of a “painful” two weeks ahead, with the country grappling to get the outbreak under control.
Start of the new month (and new quarter) and already it looks very bearish after a weak Asian session. That said, the FTSE is just below the 5470 support level on the daily chart, and with some new month money flowing in initially we may well see a bit of a kick up to start with. The 30min chart has decent looking resistance at the 5590 and 5600 levels so a rise to here before more downside later would make sense. We had a dubious looking stop hunt to 5705 yesterday.
The 2 hour chart remains bearish, and the coral has now also gone red, so there is decent resistance from that at 5637 currently – should the bulls get it up to this area then a short here looks to be worth a go as well. The S&P failed to reach and break the 2650 level and has dropped off considerably from 2645 instead, suggesting more weakness to come on that, probably down towards the bottom of the 10 day Raff channel at 2380ish or lower.
If gold can hold the 1570 level tested overnight then we may well see some buyers around this current area – it still looks like a buy the dip on the longer term charts on that for a push towards 1650+.
On the FTSE, if the bears were to break below the 5450 level then a drop down to 5350 level makes sense, with the bottom of the 10 day channel at 5200 below that. We do also have S3 at 5285 that would be worth keeping an eye on, if 5350 is broken.
Cant really see it but should the bulls push past 5640 today then R1 is at 5667 and then R2 at 5781. Might be a big ask for that higher level though!
Good luck today, expecting a rise and dip to play out again as per yesterday and shorting the rallies still feels the best play for the moment.
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