The FTSE ended marginally higher on Thursday as US-China trade optimism and economic stimulus from the ECB bank buoyed market sentiment. The ECB cut its key interest rate and announced a bond purchasing program in efforts to stimulate the Eurozone’s slowing economy. Meanwhile in the UK, parliament remains suspended and the government’s release of a document accounting for the risks of a no-deal Brexit scenario may limit upside potential on UK equities. Today, the FTSE may find support from the ECB’s economic stimulus while retail sales data from the US may impact direction during the day. Traders should continue monitoring Brexit and trade headlines to influence market sentiment and price action on the FTSE.
The FTSE added 9 points to end at 7344 on Thursday. The price traded through the 7345 level and recorded an intra-day high of 7369 whilst holding above the support at 7300. Today, look for price to trade above the 50-day MA near 7360 to indicate buying pressure and lead the FTSE towards higher levels at 7400 and 7420. Failure to trade and hold above this level should leave the index ranging lower with a trade below 7280 near the 20-period MA required to target the lower support at 7235 and 7200.