FTSE 100 FALLS ON NEW VIRUS WAVE FEARS

FTSE 100 futures are currently trading at 6073.7-lower by 2.73% as compared to the previous closing. The contract closed in the negative territory in the last trading session.

In the cash markets, the FTSE 100 lost 2.92% at the time of writing.

The index fell today as a surge in the COVID-19 infections worldwide increased fears of a second wave of the pandemic.

The midcap FTSE 250 was down 2.29% at the time of writing.

Consumer staple, financial, and healthcare shares were among the top losers on Wednesday.

London’s main index has risen around 28% since falling to an eight-year low in March due to historic stimulus and optimism around a rebound in economic activity.

The UK PM earlier today dismissed criticism of his government’s plans to implement local lockdowns it there is a surge in COVID-19 cases and of an app to trace the spread of the coronavirus.

Housebuilders were trading lower on Friday. Taylor Wimpey and Barratt Developments fell 2.80% and 2.83% respectively at the time of writing.

Energy stocks fell today due to a decline in crude prices. Oil majors BP and Royal Dutch Shell dropped 3.69% and 4.21% respectively at the time of writing.

Other top losers in the FTSE 100 include International Consolidated Airlines Group S.A. (down 7.94%), Smith & Nephew plc. (down 6.74%), and Kingfisher PLC (down 5.64%) at the time of writing.

On the other hand, top gainers in the index include Avast PLC (up 2.31%), Ocado Group plc. (up 1.36%), and Aveva Group Plc. (up 0.58%) at the time of writing.

On the economic front, CBI Distributive Trades for June is scheduled to be released on Thursday. The index reading is expected to rise to -34 from -50 in the previous month.

On the technical front, the RSI is currently at 46.86% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards.

Overall Bias is Negative and short-term trades can be initiated with below mentioned Stop Loss and Profit targets.

 

Trade Suggestion- Limit Sell at 6080. Take Profit at 6010. Stop Loss at 6110

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