FTSE Poised for Third Consecutive Weekly Drop
The FTSE 100 is trading lower once more this morning as the index has struggled to make any further headway after the strong relief rally off the lows seen earlier this year. The benchmark appeared on course for an impressive day of gains yesterday after rallying strongly shortly after the open, but the market peaked shortly after the BoE decision at midday before a sharp decline in the afternoon. The timing of the high shortly after the central bank announcement seems more coincidental than a consequence of the releases, with the selling beginning in earnest around the time of the US open - as first oil prices sank, before stocks duly followed.
FTSE at key technical level
The recent drops in the UK blue-chip index has seen prices move back down to a significant technical level that bulls will want to see held as support. A confluence of factors contribute to the significance of the region from approximately 6000-6050. Firstly, it has provided a floor and seen prices turn higher on the several occasions it has been tested going back to the end of February. Secondly, it’s an important swing level as the 38.6% fibonacci retracement of the recent rally resides in the vicinity of this area, as well as the key psychological level of 6000.
Inmarsat continues to tumble
Shares in Satellite firm Inmarsat have touched their lowest level of the past 52 weeks this morning and are currently off by more than 7%. It’s been a torrid time for investors as May has already seen more than 20% of the firm’s value wiped off both pre and post the disappointing earnings report. Insurance companies are having a bad end to the week with Direct Line, RSA and Prudential all dropping heavily in the morning’s trade. With the broader index down close to 0.7% bright spots are few and far between, with Fresnillo leading a list of gainers that only comprises enough companies to make up a baker’s dozen at last count.