FTSE 100 live outlook prediction analysis for 13th February 2020
European and US shares pushed to new record highs on Wednesday, as traders pressed on unfazed by the coronavirus outbreak. These were the day’s main events:
- US and European shares touched new record highs as investors fears over Covid-19 coronavirus subsided
- Federal Reserve chair Jerome Powell said he can see “no reason” why the US can’t maintain growth momentum
- Incoming Bank of England governor Bailey hailed the opportunities for divergence on financial services after Brexit
The pan-continental benchmark STOXX 600 – which tracks a basket of Europe’s top companies – closed up 0.6pc at 431.16. Share prices, which wobbled in January amid fears the outbreak could hit growth, have since recovered neatly – with many marking a return to record highs.
Experts Excluded
Top U.S. health experts are keen to join in when it comes to helping curb the coronavirus outbreak in China. But the group says they still have no answer on whether they’ll be allowed into the country, even after offering for weeks to send in the front-line disease experts. “We haven’t been invited yet,” Nancy Messonnier, director of the CDC’s National Center for Immunization and Respiratory Diseases, told reporters Wednesday. U.S. officials have repeatedly raised the Chinese non-response, pleading to get access on the ground. This latest offer by the U.S. would have experts from the CDC and the National Institutes of Health join an international delegation led by the World Health Organization, which saw an advance team arrive in China on Monday, with more members scheduled to arrive in the coming days. A spokesperson for the WHO declined to comment on the status of the U.S. experts. Meanwhile, China is rushing a flurry of patient studies to identify the most effective life-saving treatments for people sickened by the novel coronavirus. Here’s the latest on the virus developments as they break.
FTSE 100 Outlook | Trading Signals | Forecast | Prediction | Analysis
The SPX futures dropped off from the 3381 level overnight as the death toll from Coronavirus continues to mount and China upped the figures (no surprises there!). China’s Hubei province reported 14840 new coronavirus cases under revised standards and 242 additional deaths as of February 12th. Asian equity markets traded cautiously as the euphoria from the record highs on Wall St were soured by the latest updates from Hubei though. As such, the decent bounce from 7501 we have risen from yesterday may have fizzled out at 7550 now and we get a bit of a pause today and possible pull pack. As such, it feels like shorting any rallies today is the better play.
Initial support is at the 7496 level where we have the 200ema on the 30min, and also just above S1 at 7491. A small long here for a small bounce and possible gap close is worth a go, but should the bears break below 7490 then a drop down to 7463 looks possible. Below that then we could well drop off down to the daily support at 7405 and a possible test of the 200ema on the daily which is at 7375 currently.
For the bulls, initial resistance is clustered around the 7520-7533 area so if we do get a rise to here then a short at this area looks to be worth a go. Should they push on today then the overnight high at 7550 will likely be tested and 7574 where we have the key fib level for today. Thats also just above the daily coral line which is resistance at 7566. They may struggle to push on past this today though if it were to get that high.
So, quite a few relevant looking levels however 7520 looks the best of the resistance levels with 7574 higher up, while 7491, 7450 and 7400 support look viable. Looks bearish now. Good luck today.
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