Market News & Analysis


Top Story

FTSE To 7366 As Coronavirus Fears Persist?

The FTSE dropped sharply on the open and remained under pressure across the session, extending losses after Wall Street also opened lower. Fears over the spread of China’s coronavirus continue to knock stocks with exposure to China and weigh on risk sentiment.

Those stocks closely tied to China, such as the heavy weight miners and oil stocks were the hardest hit, along with tourism and travel firms. Burberry also extended losses for a third straight session.

Wuhan, the city with 11 million inhabitants at the centre of the outbreak under lock down. The number of people infected and the number of countries with the virus still rising, investors are growing increasing concerned that global growth could be affected. Investors are attempting to gauge the potential impact on airlines, retailers and to China’s consumption of metals and oil.

Quite simply traders are not prepared to keep risk on the table until there is more clarity over how this will develop. With 16 cases suspected in the US, 4 in Scotland and over 600 in China markets remain fearful.

Levels to watch:
The FTSE dropped 0.8% across Thursday, hitting a 5 week low of 7501 in its 4th straight session of losses.
Immediate support can be seen at 7455/ (low 8th Jan & 50 sma), before the bears will look to target 7366, the 100 sma.
On the flip side resistance exists at 7645 (yesterday’s) , before 7680 and 7730 (high 30th July)


From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.