The FTSE traded 0.78% lower on Friday as global markets suffered another round of losses triggered by President Trump’s ignition of a trade conflict with Mexico as it threatens to impose tariffs. The move comes amidst escalating trade tensions between the US and China which has acted as a negative catalyst for global equities and amplifies fears of slowing global growth. Meanwhile, a lower pound weighed by the lack of progress in Brexit failed to provide support for the FTSE. Today, the UK publishes its manufacturing PMI figure alongside Germany and the Eurozone. The data, if positive, could provide support during the day, while trade headlines will be monitored and fears of escalating trade tensions on various fronts should keep a lid on risk appetite.
The FTSE ended at 7161 on Friday, well of the session’s low at 7130. A sustained move below the support at 7150/7140 is required to signal further downside pressure and drive the FTSE towards the lower support at 7110 and 7080. Meanwhile, look for a trade above 7180 to indicate buying pressure and direct price towards the 20-period MA coinciding with the resistance at 7220.
Support: 7080/ 7040
Resistance: 7180/ 7220