Market News & Analysis

Top Story

FTSE Jumps On Coronavirus Hopes

Despite a brief dip lower on the open the FTSE, along with other European bourses bounded higher following unconfirmed reports of a breakthrough in the development of a Coronavirus vaccine breakthrough. Additionally, China TV reported that a research team from Zhejiang University has found a drug that is effectively treating people infected with the virus. Whilst unconfirmed, these reports have gone some way to improving sentiment surrounding the spread of the deadly virus. 

Traders have been fretting over Coronavirus statistics and the impact that it is expected to have on Chinese economic growth. These fears saw equity indices across the globe slump last week. The latest developments, however, are providing the markets with a level of assurance that the situation is getting under control, boosting risk sentiment. 
Whilst the FTSE was up over 1% on Coronavirus hopes, at one point, the UK index has since pared some gains, despite the pound also giving up an early rally. 
FSTE lags peers on stronger pound 
Sterling pushed comfortably back over the key $1.30 psychological level following upbeat service sector pmi figures. Activity in the UK’s dominant sector measured 53.9, well up from the 52.9 forecast and the strongest reading since September 2018. This makes it a hat trick of stronger than forecast pmi data, proving that the U.K. experienced a bounce in business and consumer confidence following the decisive Conservative win in the December elections.  
However, by the afternoon, dollar gains dragged sterling lower. This was more of a dollar strength story rather than owing to a fundamentally weaker pound. However, unusually, the effects of a more beneficial exchange rate didn’t result in an extra boost for the FTSE.

Levels to watch 
The FTSE is trading 0.6% higher, having pared some earlier gains. The index pushed above its 100 sma in the previous session and briefly breached its 50 sma today at 7474. A close above the 50 sma could indicate that the bulls are back in control. 
Immediate resistance can be seen at 7474 (50 sma) 7503, the daily high, followed by 7632 (high 24th Jan) 
On the downside support can be seen at 7386 today’s low, prior to 7377 its 100 sma and 7297 (yesterday’s low). 


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.