FTSE Higher As Stimulus Flows And Mood Improves
Fiona Cincotta March 20, 2020 7:12 AM
FTSE to jump on open after a week off speedy and aggressive central bank stimulus
European markets look set to follow Wall Street and Asia higher, as the risk tone in the market has improved slightly after another volatile week. The dollar is pausing for breath after its 8 day surge.
Following on from the BoE’s second emergency cut on Thursday, which has brought interest rates to their lowest level in the bank’s 325 year history, UK Chancellor is expected to unveil a vast rescue packages aimed a protecting workers’ jobs and wages as the coronavirus pandemic continues to hit businesses. This comes after the £330 bailout blowout announced Sunak earlier in the week.
FTSE Levels to watch
FTSE futures are pointing to a 3% jump on the open. On the 4 hour chart the FTSE is approaching the 50 sma. A break above here could see more bulls jump in.
Resistance can be seen at 5375 (today futures high), prior to 5420 (50 sma) and 5700 (high 13th March).
Support can be seen at 5142 (today’s futures low) prior to 4945 and 4831 (yesterday’s low).
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