The FTSE traded 0.71% higher on Friday as expectations of easier monetary policy from global central banks grow amidst persisting global trade uncertainty. Over the weekend, reports suggesting that the US and China had positive talks over the phone should help improve sentiment towards the US-China trade situation. However, given the negative outlook over the global economy, stemming from data pointing to a contracting German and British economy alongside heightened trade tensions, any upside potential should be fairly limited. There are no major economic releases today and markets should look to trade headlines to influence market sentiment and price action.
The FTSE managed to gain some ground as it rebounded off of the support at 7040 to end at 7117 on Friday. A sustained move above the 7150 level suggests an extension of a bullish short-term reversal where immediate resistance can be found around the zone of 7185/7200 near the 20-period MA. Failure to trade above the 7150 level would maintain selling pressure and lead the FTSE to re-test the support level at 7040.