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FTSE 100 Revisits Its Weekly Low

FTSE 100 Revisits Its Weekly Low

Alejandro Zambrano, Market Analyst

Talking Points

  • FTSE 100 slid on what to appears to be an adjustment to overnight declines in Asian stock markets.
  • BoJ inaction generates stock market turmoil.
  • FTSE 100: Over the last 24 hours, this week’s low of 6248 has been supporting price, while the 6343 level capped the price (yesterday’s high).

At the time of writing, the FTSE 100 (CFD: UK100) was lower by 1% on the day. The price slide appears to be an adjustment to overnight declines in Asian stock markets. The Nikkei 225 was down by 3.61% when trading closed for the day in Japan, a decline, which was generated by the outcome of the BoJ Rate Meeting Decision.

The Japanese Central Bank opted to leave its policy rate at -0.1% and did not extend its stimulus package to include negative rate bank loans. Bloomberg news reports that a slight majority of economists surveyed had projected some sort of change to the BoJ monetary policy. The Financials sectors in Japan was the most badly hurt, down by 5.79% on the day.

Technically, FTSE 100 (CFD: UK100) has been trading lower since mid-last week when the price reached a high of 6432. Over the last 24 hours, this week’s low of 6248 has been supporting price, while the 6343 level capped price (yesterday’s high).

Below this week’s low of 6248, the next support level is the April 11 low of 6162 and followed by the April 7 low of 6104. Resistance levels are yesterday’s high of 6343 and last week’s high of 6432.

No U.K. market moving events are on deck today.

Today, the German Preliminary Consumer Price Index report is published. A Bloomberg News survey projects the inflation rate to rise by 0.1% YoY, which would be a step back from the 0.3% rise in March. The report is important as its influences the monetary policy of the ECB, which in turns affects economic growth in the Eurozone. In the afternoon, focus shifts to U.S. GDP and Jobless claims. See our economic calendar.

Our Stock Market forecasts for Q2 2016 are now live on the site. Download them for free.

FTSE 100 | CFD: UK100

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Created with Marketscope/Trading Station II; prepared by Alejandro Zambrano

--- Written by Alejandro Zambrano, Market Analyst for DailyFX.com

Contact and follow Alejandro on Twitter: @AlexFX00

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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