The FTSE traded 0.16% lower on Friday as US-China trade news disappointed and maintains uncertainty. China cancelled US farm visits that were part of the trade-related meetings held last week while President Trump’s comments insinuated that a trade deal may not be achieved in the near-term future. On Brexit News, EU Commission President Jean Claude Juncker expressed the potential for a Brexit breakthrough should conditions regarding the Irish backstop be met. Today, traders should look to trade and Brexit headlines to influence market sentiment as the global economic outlook hinges on the outcome and developments of both situations. Apart from the news, manufacturing and services PMI figures out of the Eurozone and the US are expected to impact price action during the day.
The FTSE saw early gains reverse as it posted a marginal loss of 11 points to end at 7344 on Friday. The index remains supported by the ascending trend line tracing the sequence of higher lows. Failure to hold above the support trend line coupled with a sustained move below 7330 would indicate selling pressure and lead price towards the support zone of 7300/7290. Below this zone, the index would target the lower support at 7265. Unless we see a sustained move above 7350, chances of re-testing and breaking the resistance at 7380 remains elusive.