Vaccine Doubts Hit Sentiment
Concerns over the vaccine are overshadowing news that Chinese industrial profits surged at the fastest pace since early 2017. Although the minrers are finding support from the knowledge that the recovery in the world’s largest consumer of metals was powering along nicely. This is a stark contrast to Europe and the US which are still battling to bring covid infections under control.
The British government yesterday announced the UK Tier breakdown for when the national lockdown ends next week. With around 20 million Brits going from national lockdown to Tier 3, the toughest category the economic outlook for the UK remains particularly gloomy
Oil prices are declining on Friday in quiet trade amid concerns over oversupply and doubts over a vaccine to end the covid pandemic. Despite falling for a second straight session both Brent and WTI are on track to book gains in the region of 6% across the week.
Meanwhile, the risk off mood wasn’t helping gold, which continues to struggle for direction just north of $1800.
FTSE Chart
After the FTSE’s strong run up at the start of the month on vaccine news, the rally has been consolidating in the horizontal channel of 6515 and 6325. The price is currently find support on the lower ban of the channel. A break through 6325 could open the door to a deeper selloff towards horizontal support at 6120 and then near 6000, the confluence of the 50,100 & 200 day moving average.
Should support at 6325 hold then the FTSE could make another push towards 6500.
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