The Footsie is seen opening lower this morning following steep falls in the US overnight and in Asia amid renewed trade war concerns. Expectations of some form of “trade peace” at next week's G20 meeting were knocked after US Vice President Mike Pence was particularly critical of Chinese trade tactics. EasyJet's earnings release earlier today are however bringing back some positive sentiment to London's markets. The airline substantially raised its dividend, after reporting a sharp rise in annual earnings. The economic events calendar on today has the UK Inflation Report Hearings at1000 GMT, with Bank of England Governor, Mark Carney, as well as several MPC members, due to testify on inflation and the economic outlook before parliament's Treasury Select Committee.
The FTSE 100 ended Monday at 7000 marking the lowest closing price since October 26th and trading close to the key technical support level at 6970. Prices continued to consolidate within a tight trading range between 6970 and 7115 where it has been caught now for the last three trading days. The trend is clearly bearish, showing an intact downtrend in the short and medium terms. Selling could speed up should prices move below the nearby swing low at 6970 where further sell stops might get activated. With prices trading close to this year's low at 6855, downside momentum could accelerate should the market break out to new lows for the year.
Support: 6970 / 6855
Resistance: 7115 / 7185