The FTSE rose 0.46% on Thursday, with declines in the sterling aiding in keeping the Footsie afloat while the lack of trade developments made room for recovery. Today however, the market could see a reaction to President Trump’s decision impose tariffs on Mexico as it weighs on the prospect of global growth. Meanwhile the US-China trade war demonstrates its negative impacts on China as the nation’s manufacturing PMI report fell into contraction territory. The data should further weigh on markets’ risk off sentiment as investors monitor trade headlines to add to their deteriorating outlook on the global economy.
The FTSE managed to bounce off of the low at 7150 towards the resistance at 7240 before ending at 7218. Failure to breach the 7150 level may see the FTSE attempt to extend its retracement above the resistance at 7240 where it would meet the 7310 level acting as a barrier and enforcing the bearish trend. However, should the 7150 level be broken, price would extend declines towards the support at 7080.
Support: 7110/ 7080
Resistance: 7220/ 7240