The FTSE traded sharply lower on Friday alongside global equities in response to President Trump’s tariff threat against China. Escalating US-China trade tensions against a backdrop of Brexit-related uncertainty in the UK dragged on the FTSE and may continue to do so in today’s session as it inspires risk averse flows. Today, the UK publishes service PMI figure which should have a muted impact on the FTSE as trade concerns dominate global sentiment.
London’s blue-chip index dropped by 177 points to end at 7407 on Friday. The price traded through the 50-day MA at 7440 and should look to the 100-day MA at 7380 to provide the next level of support. Should price trade below 7380, we should see it target the support at 7340 followed by 7310. Meanwhile, the 7440 resistance level should limit upside potential and an attempt to test the resistance at 7470.