The FTSE 100 is expected to rise back above the 7,500-point mark on Thursday as stocks in London recover from Wednesday's sharp losses. Concerns over China's economic health and the precarious state of the Turkish financial system and what the implications could be for global markets ensured a negative session yesterday across global equity markets. Looking ahead, focus lies on July's retail sales, due at 11:30AM (UTC+3) . Economists see sales rising 3.0% year-on-year, accelerating from June's 2.9% growth.
The UK index broke major support levels yesterday tumbling to a fresh yearly low at 7475. It is rebounding this morning although the old support turned resistance at 7560 will now be an opportunity for sellers to take advantage of global negative sentiment. The RSI looks mixed to bullish suggesting more upside and a test of the 7540 - 7560 new resistance zone.
Support: 7475 7390
Resistance: 7560 7645