Listen to the latest market mood for the FTSE 100 Index.

Asian equity markets traded up as the ECB made an announcement last night that it will consider some ‘fallen angels’ as lending collateral to prevent banking liquidity constraints. Oil also continued to build on yesterday’s gains overnight with Brent at $22 and WTI at $25. However, this ‘risk on’ tone that we see today is likely to be temporary.

With jobless claims due out of the US today, and set for another +4 million rise, any risk on tone should be traded carefully. The bigger picture, with earnings due to be released, German consumer confidence falling, and contentious EU negotiations ahead means that stocks should still find sellers on any further strength.

• Therefore, medium term, expect FTSE 100 sellers from any further strength as marked on the chart.
• We expect this outlook to play out over the next 2-4 weeks.
• The main risk to this outlook remains to be any positive coronavirus news, like the news of a successful vaccine which would send the market back into a risk on mood and support stocks.