FxWirePro: FTSE100 lost more than 5% this week on weak global cues, any major weakness below 7000

Major support- 7000

FTSE100 is one of the worst performers this week and lost more than 5% on weak global cues. The escalation of the US-EU trade war and a weak economy from the US is putting pressure on global stock markets. US ISM manufacturing and services PMI came much below expectations and markets eye US NFP data today for further direction. The index hits low of 7003 and is currently trading 7098.

UK 10 year yield declines sharply and lost more than 45% from high and spread between the UK 10 year and 2-year gilts widened to 1.7 bps from -0.4 bps.

On the flip side, major support is around 7083 (200- W MA) and any close below will drag the index till 7000. Any dip below that level targets 6850.

The near term resistance is around 7140 and any break above will take the index up till 7200/7240. Any bullish continuation only above 7460.

It is good to sell on rallies around 7125-30 with SL around 7180 for the TP of 7000.